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Bio
Tom serves as a Senior Managing Director and Chief Investment Officer for ABR Capital Partners. He has over thirty years of experience managing real estate investments for institutional and private clients, with a focus on middle market transactions. Tom joined ABR in 1992 and has served as Asset Manager, Director of Asset Management, Chief Operating Officer and, since 2005, Chief Investment Officer. On behalf of ABR’s clients, Tom has acquired and managed over $3 billion in real estate investments across a variety of property sectors and U.S. markets. He has helped transition the firm from its roots as a single asset syndication platform to its institutional fund program, which to date has acquired over 100 assets and invested over $1 billion in client capital. Prior to ABR, Tom served as Asset Manager for insurance company USF&G and Senior Accountant for Ernst & Whinney (now EY). He has also served on the faculty of the real estate departments of Georgetown University and the University of Maryland. Tom received his BS from the University of Maryland and his MBA from the Wharton School. He is a Certified Public Accountant (inactive) and Certified Management Accountant (inactive). In addition to his professional activities, Tom serves on the Real Estate & Infrastructure Advisory Board of the Johns Hopkins Carey School of Business and on the Board of Directors for Adoptions Together (formerly chair) and Constantine Housing Initiative.
Show Notes
- The role at ABR Capital Partners (00:05:15)
- Tom Burton describes his roles as co-senior managing director and chief investment officer at ABR Capital Partners, along with fundraising activities.
- Origins and youth (00:05:30)
- Tom Burton shares his upbringing near Atlantic City, his parents’ backgrounds, and his early experiences working at his father’s gas station.
- Impact of casinos in Atlantic City (00:08:00)
- Tom Burton discusses the economic impact of the legalization of casinos in Atlantic City and its influence on businesses in the region.
- Influence of parents and work ethic (00:10:20)
- Tom Burton reflects on the work ethic instilled by his parents and their ability to face hardships without complaining.
- Involvement in Boy Scouts (00:12:15)
- Tom Burton discusses his experiences as a Boy Scout, emphasizing the leadership and planning skills he gained from the program.
- Fraternity experience at University of Maryland (00:18:00)
- Tom Burton shares his positive experiences and leadership roles at the Sigma Chi fraternity during his time at the University of Maryland.
- Transition to accounting profession (00:20:30)
- Tom Burton talks about his transition to the accounting profession and his experiences working at Ernst & Winney in Philadelphia.
- Diverse client experiences in accounting (00:21:10)
- Tom Burton highlights the diversity of clients he worked with in accounting, ranging from dumpster manufacturing to professional basketball teams.
- Moving into Consulting (00:22:45)
- Transition from audit to consulting, training programs, and working with small businesses.
- Preparing Financial Statements (00:23:45)
- Assisting a small business client, preparing financial statements and forecasts.
- Deciding to Pursue an MBA (00:26:35)
- Considering a career in the built environment, decision to pursue an MBA at Wharton.
- Financial Aid and Teaching Experience (00:28:15)
- Scholarships, teaching cost accounting at Wharton, and additional credentials.
- Focus on Real Estate at Wharton (00:30:45)
- Choosing real estate as a major, interactions with Dr. Peter Linneman, and involvement in real estate advisory panels.
- Participation in ULI Advisory Panel (00:35:30)
- Involvement in a ULI advisory panel for a real estate portfolio in Hawaii.
- Navigating Real Estate Job Market (00:41:15)
- Impacts of the real estate recession on the job market and securing a position in real estate.
- Non-conventional Real Estate Portfolio (00:43:20)
- Working with non-traditional real estate investments and the shift towards workout mode.
- The team that was running the more traditional portfolio (00:45:00)
- Tom talks about his transition from college to working at USF&G and the merging of two groups.
- The CEO change and the challenges faced (00:46:10)
- Tom discusses the CEO change at USF&G and the challenges faced by the insurance company.
- Learning from workouts and career opportunities (00:47:00)
- Tom Burton shares the valuable experience gained from working on workouts and advises young professionals on career opportunities.
- Transition to Alex Brown Realty (00:48:50)
- He discusses his transition to Alex Brown Realty and the difference in the cultural atmosphere.
- Formation of Alex Brown Realty and its investment strategy (00:52:30)
- Tom explains the history of Alex Brown Realty, its formation, and the investment strategies adopted by the company.
- Asset management and business planning at Alex Brown Realty (00:59:15)
- He talks about his role as the head of asset management and the implementation of structured business planning at Alex Brown Realty.
- Evolution into an institutional investor (01:04:00)
- Tom discusses the company’s transformation into an institutional investor and the introduction of standardized reporting for investors.
- Transition to acquisitions area (01:08:00)
- He talks about his transition into the acquisitions area and the reasons behind this shift.
- The asset management team (01:08:30)
- Tom Burton discusses his role in managing a small asset management team and his early acquisitions in Florida and California.
- Building a portfolio in California (01:09:30)
- Tom explains how he started investing in California, the partnerships formed, and the evolution of their partners’ businesses.
- Transitioning to institutional relationships (01:12:30)
- The discussion focuses on the challenges of transitioning partners from friends and family capital to institutional capital.
- Assessing character and partnerships (01:16:15)
- Tom emphasizes the importance of assessing the character of potential partners and discusses the impact of partnerships on investment outcomes.
- Investment evaluation and decision-making (01:23:00)
- The conversation delves into the evaluation process of potential investments and the importance of understanding partners’ business plans and character.
- Diversifying investment strategies (01:27:15)
- Tom explains the evolution of investment strategies, including preferred equity and joint venture programs, focusing on shelter and logistics sectors.
- Market opportunities and investment strategy (01:29:45)
- Tom discusses the impact of market uncertainty on investment opportunities, particularly in office space, and the focus on logistics, rental housing, and hospitality.
- Opportunities in the Market (01:31:20)
- Discussion about assets trading at lower prices due to the inability to refinance loans and the impact on transaction volume.
- Impact of Reduced Leverage (01:32:30)
- Impact on sellers and buyers due to reduced leverage and the need for more equity in transactions.
- Fundraising and Investment Strategy (01:34:45)
- Discussion about the firm’s fund model, client capital, and investment strategies.
- Fund Series and Investment Scale (01:37:25)
- Details about the funds raised, their scale, and the structure of closed-end funds.
- Investor Preferences and Fund Size (01:39:45)
- Comparison of investor preferences and the impact on fund life and size.
- Equity Check and Investment Size (01:40:30)
- Discussion about the largest single equity check written and its impact on competition and investment ideas.
- Co-GP Investment Program (01:41:20)
- Introduction of the co-GP investment program and its role in providing equity investment in transactions.
- Company Structure and Transition to LLC (01:50:50)
- Transition from a C Corp to an LLC and the tax efficiency and direct ownership structure of an LLC.
- Asset Management and Disposition (01:52:45)
- Discussion about the asset management team, disposition officer role, and protocols for selling assets.
- The average hold period (01:55:00)
- Discussion on the typical hold period for assets and the reasons for the decreasing hold period over the years.
- The impact of regulations on investment (01:58:00)
- Exploration of the SEC’s new marketing rule and its implications on investment reporting and compliance.
- The role of in-house counsel (01:59:20)
- Importance of in-house counsel for educating and guiding acquisition officers and asset managers in understanding legal documents and implications.
- Balancing risk and conservatism in investments (02:02:15)
- Discussion on the company’s conservative approach to exit valuations and the willingness to take risks with trusted operating partners.
- Future plans and innovation (02:05:20)
- The intention to continue the current business model, explore new opportunities, and leverage competitive advantages for growth and innovation.
- Community initiatives and ESG integration (02:07:30)
- The company’s long-standing commitment to community service, mentoring programs, and initiatives to support underrepresented groups in the industry, along with the focus on environmental considerations in investment strategies.
- Research collaboration and environmental impact assessment (02:14:45)
- Collaboration with Johns Hopkins University to study the comparative environmental impact of new construction versus the refurbishment of existing assets.
- Balancing Priorities (02:17:50)
- Tom discusses the importance of balancing work, family, and community involvement in his life.
- Career and Life Partner (02:18:15)
- Tom talks about finding a fulfilling career and a supportive life partner to achieve a happy balance.
- Advice to 25-Year-Old Self (02:20:00)
- Tom reflects on the advice he would give his younger self, including taking specific classes and seeking overseas work experience.
- Billboard Statement (02:21:30)
- Tom shares his message for a billboard, emphasizing the importance of curiosity in life.
