The Challenge
Given the breadth of their holdings and a business strategy of identifying properties and adding value to increase their NOI, FCP was determined to take a different approach to their capital expenditure planning, execution, and tracking.
In 2018, Dara Vaziri joined FCP as a Senior Analyst with two principle directives; implementing a new CAPEX management system across the FCP portfolio, and acting as a liaison between third-party property managers, vendors, asset and construction management.
Vaziri had to solve several challenges in order to achieve FCP’s CAPEX vision. Systems were disparate and required manual entry to generate the desired information. Each third-party property manager had their own separate Yardi accounting system, resulting in duplicative reporting and individualized account charts. Disjointed and disconnected reporting within FCP required even more bigger-picture assembly. In the absence of a shared channel to streamline and aggregate data analysis and communication, FCP lacked readily available real-time access to vital, holistic information.
The Solution
FCP sought a technological solution that would address the many different languages used by its third-party property managers. After researching the marketplace, FCP decided a partnership with Procore would provide a single source of truth for analysis with the help of FCP’s proprietary platform HBX that translated the many different languages to Procore. Adoption meant streamlining communication among stakeholders while connecting managers, vendors, and asset managers through one system. It became clear that this could be their solution, putting everyone on the same page.
FCP then asked all of its third-party managers and vendors to use the Procore platform. Giving FCP a single hub to communicate, track, and report on projects would provide more actionable insights for better decision making.
The Results
Less than a year after implementing the platform, FCP now has 965 projects on Procore. Given their unique holdings, digging into the nitty-gritty details of small capital item details is crucial to achieving a successful CapEx business plan. Procore provides a single source of truth across all of their projects, so every dollar spent can be analyzed to ensure they are adhering to their business plan while making well-informed decisions for the future.
Vaziri explains, “Procore helps us ensure properly allocated and attributed spend across our capital projects, so we have an even better view of what we are spending and where we are on our business plan.”
The result is significant alignment and reliable data sets. Procore has provided FCP with unimpeded visibility to understand its actual capital expenditures, which provides greater clarity to its everyday decisions and future budgeting. Mr. Vaziri believes this transparency has been the single most significant value-add since Procore came aboard—affecting both the prioritization of projects, and consensus on what specific goals each project can expect to achieve.
FCP is a privately held real estate investment company focused on the residential and office real estate sectors. FCP’s portfolio includes about 39,000 multifamily units and 4.1 million square feet of office spaces across 16 states.
Chevy Chase, MD
Commercial Real Estate Owner, Office and Residential
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