PMI is a thirty year old property investment company headquartered in Beverly Hills that invests in commercial and residential real estate. PMI was founded in 1978 by Scott Sternberg and has since closed over $500 million in office, shopping center, industry and apartment properties. These properties have been primarily located in Los Angeles and recently in San Francisco. PMI had its roots in investing in apartments, but more recent investments have focused towards offices, creative offices and converted warehouses. In 1993 Jeffrey Palmer became a principal partner after holding senior executive positions at Columbia Savings, Wallace Moir, and Kaufman and Broad Homes. On August 27, 2012, the Los Angeles Business Journal profiled Mr. Palmer as a pioneer of creative office and tech properties in the Annual Who’s Who in Los Angeles Real Estate.
PMI is typically more active as a buyer during the latter part of an economic downturn and during periods of economic recovery. We have characterized our investment strategy as “Extreme Value Investing” — see [The Art of Extreme Value Investing]. Purchases have ranged from entirely empty to fully leased buildings. The philosophies of PMI have evolved as a participant in four economic cycles, and its reputation and integrity have been established over the last quarter century.
PMI was the first to pioneer a new, creative suite in office buildings with its proprietary “lifestyle suites,” which featured skylights, partial hardwood floors, designer lighting, raised ceilings, interior glass, and other upgrade features. PMI pre-built the suites in an efficient and generic floor plan that not only achieved a premium but also rented faster than suites requiring build-to-suit modifications. PMI was also one of the first to convert warehouse industrial facilities into flex creative space prior to the Internet boom.
PMI turned its attention in 2005 to purchasing creative office in San Francisco. PMI created building clusters of all tech startups to help revive the struggling SoMa district, of which included Twitter, Yammer, Eventbrite, Zendesk and Scribd.
Currently, PMI is purchasing single family homes, duplexes, triplexes and small apartment buildings in Los Angeles and the Bay Area. Targeting gentrifying urban areas, PMI is renovating obsolete properties into hip, “creative multifamily” apartments that appeal to Gen Y, knowledge workers, the creative class, and urbanites. These living spaces feature efficient and open floor plans, exposed building elements, higher ceilings, wood or concrete floors, both privatized and common collaboration outdoor areas, new windows, and drought tolerant landscape. Much like it helped pioneer the creative office in the late 90s, PMI is helping invent “Creative Multifamily.”