LCOR: Real estate with engineering DNA
LCOR, a US$5 billion+ multifamily development, investment and operating company, was halfway through acquiring a property when Mike Hogentogler made a call that often comes after closing, not before.
He brought his insurance partner, FM Affiliated, into the due diligence process.
The offering memorandum described three steel-frame buildings. The numbers looked solid, and the deal had momentum. But Hogentogler, chief operating officer at LCOR, wanted engineering eyes on the property before securing ownership.
FM Affiliated engineers walked the site. When they reported back, they had found something the seller's documentation had missed. Two of the three buildings were podium construction with wood frame on top, not steel throughout.
"We had no idea," Hogentogler said. "When you're in the middle of an acquisition and you're facing deadlines, getting that information and response quickly is extremely helpful. It allows us to adjust our underwriting and our outlook for the property."
The construction type affects fire ratings, insurance calculations, operating procedures and long-term costs. Wood frame generally has higher fire risk than steel, which changes both protection requirements and premiums. The information gave LCOR reason to renegotiate terms before closing, rather than absorb the surprise months into ownership.
Creating core
LCOR has spent nearly 50 years developing multifamily properties along the U.S. East Coast with a philosophy the team calls "build-to-core," which means creating institutional-quality assets designed to last and impress.
The philosophy works beautifully. LCOR now manages 31 projects and more than 10,000 units from Boston to Miami. The portfolio includes sought-after properties such as The Ryland, a 31-story tower in Philadelphia's Society Hill with a rooftop pool, fitness center and concierge services overlooking the Delaware River waterfront. Every decision requires choosing partners as carefully as choosing properties.
"Timelessness is not just a design concept for us," Hogentogler said. "It's something that we build into our relationships."
Engineering from day one
When LCOR's previous insurance renewal came up, its broker, Marsh, and consultant, FHS Risk, recommended FM Affiliated for its engineering-based approach to underwriting. Marsh and FHS Risk were direct about what to expect. FM Affiliated's engineers would evaluate every building in detail and take a hands-on role in risk management.
"I was advised that 'FM Affiliated is going to be all over you,'" Hogentogler said with a laugh. "And I thought, great, because that's our DNA."
He attended every initial baseline engineering visit alongside FM personnel. Into mechanical rooms. Onto rooftops. Through utility spaces.
"[Hogentogler] visited sites without even having been insured by us yet," said Mike Uccello, the FM Affiliated senior production underwriter working with LCOR.
Hogentogler wanted to understand from a baseline perspective how FM Affiliated was looking at LCOR's buildings and risk management procedures. "So when we went through recommendations, we could have constructive discussions because I'd been there, I'd seen it and I understood it," he said.
Balancing today and tomorrow
Some engineering recommendations clicked immediately, like the Red Tag program. The program tracks sprinkler systems when they go offline for maintenance or repair. Property teams notify FM when a system comes down, then again when work is complete. If FM doesn’t hear back, they follow up. It’s simple accountability in every building.
The Red Tag program was live within 45 days of LCOR becoming an FM Affiliated client, while other recommendations had more complex considerations. FM initially wanted HVAC units mechanically fastened to roofs. LCOR's construction teams raised concerns about invalidating roof warranties. After some back-and-forth, FM changed the standard to fit LCOR’s use case.
"That's a good two-way street where we can communicate things," Hogentogler said. "But we can also get best-in-class tips from FM Affiliated because they are seeing a ton of different real estate companies. I only see ours."
When the clock is running
Real estate companies face several well-known risks. Burst pipes cause water damage. Mechanical spaces have small fires. Coastal properties face natural hazard exposure. The question is one of preparation.
"When you have that incident and you get that phone call at two in the morning that something's wrong, no one wants that," Hogentogler said. "You're concerned about your residents. You're concerned about our staff. We're concerned about the property."
When losses occurred at LCOR properties, Patrick Leak, a senior adjuster at FM, arrived on site the next day. Speed reduces disruption, but showing up is only part of the response. Leak brought building, mitigation and forensic accounting consultants, depending on what each situation required.
"One thing we want to do is help our clients on those bad days," Leak said. "To make sure they understand that no matter how bad it looks initially, we're going to get through this and we're going to be there to help them get back up in operation."
Multiple parties have to coordinate together. LCOR's property teams. Residents. FM Affiliated. The lender. FHS Risk as the insurance consultant. Marsh as the broker. Still, it can move quickly if everyone is aligned. For a company that stakes its name on tenant experience, getting buildings back to normal operation protects its reputation every bit as much as it protects property value.
LCOR also invests in prevention. The company installed water detection systems and auto shutoffs throughout its portfolio to catch issues before they escalate. Before major storms, task forces check vacant units, confirm temperatures in mechanical spaces and stage backup heating equipment.
Scaling portfolio protection
As LCOR grows, the engineering and insurance relationship grows with it. FM Affiliated reviews plans before buildings are constructed. Recommendations get incorporated during design rather than flagged after construction. By the time a new property comes online, the engineering team has already reviewed it 15 times.
"There's nothing more powerful than having management buy into our engineering," Uccello said. "That's the critical step."