Today we’d like to introduce you to Rocco Cortese.
Rocco, let’s start with your story. We’d love to hear how you got started and how the journey has been so far.
In college, I studied business with no idea what I wanted to do. Waking up one morning on my brother’s couch in Los Angeles, his roommate asked how my interview the day before went, I regretfully admitted I didn’t get the job after failing a typing test (yes, a test I took on a typewriter). This was back in the late 80’s when technology was beginning to expand into the business world (and yes, I might be that old).
My brother’s roommate suggested that I come interview at his company, Coldwell Banker (now CBRE). Three months and six interviews later, I was a commercial real estate (CRE) trainee at the largest and most successful company in the industry. It was here that I met my now business partner, Mark Hoekstra. During this time, the economy was recovering from a recession and at the end of my training program, Coldwell Banker didn’t offer me a permanent position other than to remain a trainee. Fortunately, I was recruited by a few ex-Coldwell Banker employees to work at their firm, which better positioned my career path in the industry, starting as a property manager.
Traveling to Asia and Europe
In my 20’s, I craved adventure. After some time as a property manager, I resigned from the firm and took the next couple of years to backpack around the world traveling to Asia and Europe. During these experiences, I learned more about who I was and who I was evolving to be, the things that mattered, and dreamed about where I would go next.
San Francisco
After returning from Europe, I made the move to San Francisco and felt connected immediately — the landscape, the people, the business climate, and the energy were inspiring. It was here that I married my wonderful wife, having all three of our kids as well. We started building our life together in San Francisco, meeting great friends and colleagues along the way.
Continuing my career in CRE I developed a passion for the towers that made up San Francisco’s skyline. I worked in and around the city, joining various industry groups to expand my real estate knowledge and business network. Working as a General Manager, then Regional Manager running portfolios of office properties to becoming a Senior Vice President, and Regional Director of Business Development at Jones Lang LaSalle (JLL). It was at that point that I decided to leave the corporate world and start the next phase of my career as an entrepreneur.
San Diego
About five years after leaving my high-paying job in the City to start a small brokerage firm, I aspired for more. This aspiration coincided with a move back to San Diego. I reconnected with my long-time friend and now business partner, Mark Hoekstra, who had just started a real estate property management company. We started brainstorming about the ways we could build a full-service platform that focused on middle market real estate owners. What we discovered was a gap in the market for servicing this class of owner, that the larger firms did not cater to.
We positioned our company, Intersection (formerly The Heritage Group), to deliver a highly personalized full-service platform to mid-market clientele. This strategy included building half a dozen core relationships with high net worth families and family offices that were longing for an extension of their real estate platform in brokerage, investments and property management.
Today, Intersection operates 1.8 million square feet of real estate across five different states, the majority being in San Diego. The Intersection team consists of three divisions: brokerage, investment management, and real estate services (property management, construction management, and repair and maintenance). This past spring, we expanded our property management practice in Salt Lake City, Utah. In San Diego, we are currently looking to hire more brokers and raise capital for our second investment fund.
Great, so let’s dig a little deeper into the story – has it been an easy path overall and if not, what were the challenges you’ve had to overcome?
We launched Intersection [The Heritage Group] in 2009, following the worst economic crisis in the United States since the great depression. For us, it was a tremendous challenge that we did not shy away from. However, following the crisis made it extremely difficult to raise capital and generate deal flow – two elements that were critical to our overall business growth.
We had to pivot to survive, get comfortable with change, and utilize the approach “fail fast, innovate faster”. With this method, we were able to develop a business model that works. As most growing companies do, we faced new challenges within corporate functionality in terms of IT, accounting, personnel, and office space. Long-term growth strategy for Intersection became a necessity to guide our business decisions to this day.
In 2018, we rebranded to Intersection, moved into a 5,000+ square foot office space in Downtown San Diego, and now lead a team of 33 people across the platform.
Tell us about your work.
Intersection is a vertically integrated, full-service commercial real estate firm. Our platform includes investment management, brokerage, property management, repair and maintenance services, and construction management. At Intersection, our mantra is “Driven by Integrity” – we believe that the value of commercial real estate can’t be measured in dollars and cents alone. Beyond its investment potential, it has the power to shape communities in profoundly positive ways. We provide vision and guidance you can trust. We’re driven to enrich the lives of those we serve and enhance the communities where we live and work.
As Managing Director, I oversee the investment management practice raising funds to acquire value-add properties throughout California. Over the years, I have led the acquisitions of 23 properties, at an approximate total value of $135M. My leadership style is inspired by the likes of Simon Sinek’s book, “Leaders Eat Last,” and Pat Lencioni’s books: “The Five Dysfunctions of a Team” and “The Advantage”. I have found that when you put people first, welcome transparency, and communicate the vision clearly, team members and leaders will connect the vision back to their impact. Ultimately, steering the boat in the right direction. When everyone rows in the same direction, the company has the highest potential to be formidable.
What role has luck (good luck or bad luck) played in your life and business?
Generally speaking, I feel very lucky to have the family, friends, and colleagues around me that I do. 16 years ago, my wife and I found out that one of our twin boys has a disability that will impact his life forever. As a parent, it is a very difficult reality to wrap your head around. What I’ve learned thus far from the experience, is that my wife and I are very practical people. We tend to deal with difficult situations well, pick up, carry on, and continue to move forward. These challenges have also been a gift to our family. We had a daughter a few years after the boys, and today all three are in high school and our family is thriving.
In business, amid the 2008 recession, I am very proud that Mark and I were able to prevail and grow the company to be where it is today. I have carried over a similar practical perspective in my business decisions as I have in my personal life. In both scenarios, I have been extremely lucky to have such great partners at home and at work.
Pricing:
- Property Management Fees: Typically, 3 to 5 percent of gross income.
- Brokerage Fees: Market-based upon product type and deal size.
- Investment Fees: 1.75% of equity invested. 80% of profit to investors over 8% preferred return. No acquisition fees.
Contact Info:
- Address: 110 W. A Street, Suite 1125
San Diego, CA 92101 - Website: https://www.intersectioncre.com/
- Phone: 619.239.1788
- Email: rcortese@intersectioncre.com
Image Credit:
Javier Luna
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