Jac Zadrima has been active in the New York real estate market since 1986. Starting as a commercial real estate broker, he began investing and managing real estate with an MBA from Fordham University. As the industry changed and became more management intensive, Genesis Realty Group LLC was created in 2007 and now controls a portfolio of approximately 2,500 residential units, both owned and managed third party. The company manages all markets of real estate from luxury to tax credit properties in the tri-state area, but specializes in the highly regulated, rent-stabilized market of the Bronx and Upper Manhattan.
Jac’s company provides full service management, of which he personally oversees long-term planning, procurement of financing, acquisitions, and interfacing with various city, state, and federal agencies. Recent changes in the industry have called for NYC property owners and managers to consider the environment from an economic and social viewpoint, and changes in regulations and incentives have provided the fuel to implement energy reduction policies that reduce the carbon footprint. This unique convergence of government policy and affordable measures has provided Genesis Realty Group with the incentive to carry out an intensive green initiative.
Jac considers the acquisition, renovation, and creative financing of distressed properties to be among the most difficult and most rewarding aspect of his career and regards such endeavors among his greatest professional achievements. He currently sits on the board of CHIP, BMNAR, and The Bronx Historical Society.
Q: What made you decide to get into property management? How long have you been at it? What were you doing before you got into this field?
A: I guess you can say I was bred to be in this business. Growing up as an immigrant’s son, my father was a multifamily building superintendent for most of my childhood through my early teens. As such, I grew up in the business of property management. I learned about maintenance, cleaning, and tenant relationships. My sister and I were the only ones in the house fluent in English and formally educated so we also got to do fun things like register apartments, file MBRs, and grieve real estate taxes. I did not know it at the time, but I was building a foundation for a life-long career. If you count this experience, I have been in property management for 45 years. I officially started formally managing properties when I purchased my first real estate investment in the early 90s. Between my brief career in brokerage in the late 80s to early 90s and buying my first investment property I received my MBA and worked in a corporate environment for a year. My entrepreneurial spirit and training quickly led me back to real estate.
Q: What are the hottest areas in NYC property management right now?
A: I’m a Bronx guy. Naturally I think the Bronx is the hottest area and I have always thought so. There is a lot of interest and speculation in this borough. Now more than ever owners need professional management. The profit margins are smaller than ever, while regulation and compliance are stricter and more prominent than ever. Professional property management makes the difference between realizing your anticipated cash flow and failure.
Q: What is an important risk management issue that you are dealing with in real estate today?
A: Insurance! Despite all of our company’s best practices and training we cannot mitigate the nature of our litigious society. Everyone sees the landlord as the party with the deepest pockets and insurance carriers bend quickly to settlements to avoid a trial. This, in turn, leads to higher premiums as a result of losses.
Q: What are some of the standout projects you have worked on?
A: Every project is unique. My most unusual project was buying smaller properties as part of an assemblage. It’s always a challenge dealing with single property owners. It becomes even more challenging when the neighbors realize someone is looking to assemble lots for development. This requires patience and thinking outside the box. I had to negotiate a long-term lease with a civic organization guaranteeing them a space in the new development post- construction in order to complete the project.
I am most proud of my most recent deal. This required a lot split, reapportionment, and a C of O change on an existing multiple dwelling. I was able to complete this in less than six months, delivering a marketable vacant lot to a buyer. Having to arrange all of these items at once in order to procure a deal is something I had never done previously. That is one of the exciting things about this business. There are always new challenges and new ways to approach a transaction. All this, of course, can only be done with a great team behind you.
Q: What is your secret weapon for sealing a deal?
A: My ability to deliver and close quickly and efficiently as it was originally negotiated with little to no changes. Over time, this defines you as a deal maker and people come to trust your ability to close effectively without issues.
Q: What pushes you to the next level?
A: It’s a combination of things. I love what I do and I’m not afraid to take calculated risks. When my children ask what I do for a living I tell them “I eat what I kill.” There is a great challenge in waking up looking for your next deal. My sense of accountability to my family, partners, and staff drives me to continue to do better while maintaining my integrity.
Q: Who inspires you?
A: People around me who achieve and maintain success. I have never been an envious person, even at the start of my career. I am genuinely happy for my peers and try to learn critical things from those around me who have accomplished great things.
Q: If you had to work in a city other than New York, where would it be? Why?
A: I love Chicago and Boston. I love to visit them, but I could never work anywhere other than NYC.
Q: What background/credentials would be advisable to have to start out in the property management business? What advice would you give to someone starting out?
A: Given my own background and my belief in paying one’s dues, I would advise someone starting today to start from the bottom, learning and owning your building systems and operations. You can’t manage something you don’t physically understand.
Jac Zadrima
Principal, Genesis Realty Group LLC
4419 Third Ave, Suite 4A
Bronx, NY 10457
718-228-0020
jzadrima@genrealgroup.com
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