Development Management & Owner Representation Services...

Rainmaker provides development management and ownership representation services and consulting support to the commercial income-producing property development industry.  Owner Representation (commonly referred to as "OR") is an alternative to the standardized development management services approach to project delivery for commercial real estate projects.  Under the standard development management services approach, the services provider is responsible for managing all aspects of the project's development program from initial concept development all the way thru to completion of construction and operational stabilization of the income-producing property.  The project development manager (commonly referred to as the "Developer") makes all decisions for the owner regarding every aspect of the project's development, financial, marketing, and operating affairs from "soup to nuts".  There are basically two (2) kinds of development management services agreements used in the industry today:

The challenge created by the development management services approach is that it leaves very little (comparatively speaking) of the economic opportunity on the table for the owner (the original project sponsor), because the Developer is taking the majority of the risk - and all too frequently - saddled with providing the vast majority of the project's funding resources.  This leads to the inevitable realization that hiring a Developer to manage the project can result in some economically painful consequences for the project sponsor that all too often, result in severe disappointment and no technology transfer that would allow the project sponsor to pursue future projects without significant outside development management expertise (and a repeat of the same scenario all over again).

Owner Representation services solve a majority of these problems by placing the owner/sponsor in firm control of the overall development program.  The project sponsor is now in the position to have the mission critical services loopholes filled, while retaining the vast majority of equity ownership that would otherwise be "soaked up" by the Developer.  The project sponsor is also left with the opportunity to receive the vast majority of the development management fee income generated by the project, thus creating the much desired specter of both near-term and long-term economic remuneration for the project sponsor that is materially significant - especially in multiple project roll-outs.  OR services providers are typically paid on an hourly fee-for-services basis and receive a modest success fee based upon the services provided.  The OR services provider takes no risk and is not typically involved in anything outside the narrow purview of the management of the actual development program (i.e.: capital funding and project operations are not typically part of the OR Services Agreement).

The Rainmaker approach is to focus on the areas where the greatest value is created for the services provided, to wit:

This approach allows the project sponsor to gain insight and knowledge at each step of the way, stay firmly in control of their destiny, retain the lion's share of the sponsor equity interest, and gain the help when they need it the most - in the formative stages of the project where the capital formation activities make the difference between a drawing board dream that remains that way and a project that can move forward on a fully funded basis.  Rainmaker then exits the transaction after having created significant value for the project sponsor by helping with the mission critical items, training key staff members, and not placing the owner in the position of having to forego significant equity and income opportunities that would otherwise happen in a development management services envelope.

Learn more about how we can help you.  Contact our offices today.

About Rainmaker...

Rainmaker Marketing Corporation is the brainchild of Clint Lovell, a seasoned business finance consultant with more than 20 years experience.  Rainmaker is a B2B consulting firm that was incorporated in 1994 for the purposes of providing market feasibility studies to businesses seeking capital financing in the commercial and institutional markets.  Today, Rainmaker Marketing Corporation provides a comprehensive array of due diligence documentation services for most major industry groups.  Rainmaker Marketing Corporation also provides syndication management services for fractional commercial real estate syndicates that can provide mezzanine gap funding for income-producing commercial property developments as early as the pre-construction phase.  Rainmaker Marketing Corporation serves clients throughout North America and the Caribbean Basin.

Rainmaker Marketing Corporation, Inc.

15519 Dawnbrook Drive, Houston, Texas 77068

281.537.1200  

consultants@rainmakermarketing.com