Q&A with Davis Companies’ Cappy Daume: Creating Value Requires “Wholehearted” Approach

Today, Cappy Daume, managing director, asset management at The Davis Companies, is a pillar of Boston commercial real estate, yet she too was once a beginner. She developed attributes early on that she has carried forth and evolved with changing and increasing responsibilities. A panelist on Connect CRE’s recent Connect 2022 CRE Women’s Outlook webinar, Daume here shares about her growth as an industry member and Davis’ growth as a fund manager.

Q: In the course of your real estate career, you have transitioned through a few different company cultures: Spaulding & Slye Colliers, JLL and, since 2009, The Davis Companies. What attributes have you carried over in all of these organizations and which have you developed over time?

A: When I joined Spaulding & Slye a little before my 30th birthday, I was thrilled to be working with such a smart and dynamic group of people. The company was a fully integrated real estate platform, so I got to learn about the many different facets of the business – leasing, investment sales, construction, property management, development and principal investing. Creating value there was an intramural sport where different people with different expertise would come together to iterate solutions.

In moving to The Davis Companies, I carried this training as an operator/developer with me, but this time I was on the frontline of having to make asset-level decisions as a fiduciary and as an investor rather than as an advisor. Finding, creating and maintaining value is a “wholehearted” endeavor that requires curiosity, critical thinking, creativity, discipline, a competitive spirit and a sense of urgency. I have tried to carry these attributes forward with me throughout my career. What is different today versus back then is that I have learned to trust my intuition or deal sense to help guide my assessments. I believe time and experience are responsible for this evolved sixth sense.

Q: You were instrumental in growing Davis’ fund management platform into a key part of the business. For you and for Davis, what were the challenges in making that happen?

A: I once shared with Jon that when I first joined DAVIS in the spring of 2009 (on the heels of the WFC), it was like joining a 35-year-old start-up. The company had approximately 35+/- people when I walked in the door, which has grown to approximately 120+/- strong. Jon had an incredible track-record as an investor in which he paired each investment with its own capital structure derived mostly from a diverse high net worth investor base. The loyalty of this network was an extreme advantage in 2009 because the institutional capital markets had seized up and were still reeling from uncertainty. This was not the case with Jon. however, as he saw real opportunity amidst the dislocation.

As I was assessing his invitation to join him, I surmised that DAVIS had three important things going for it: 1) the company had an existing operating / development platform with a strong property management base and a stable existing real estate portfolio – these attributes allowed us to focus on finding and creating value while others were either paralyzed or troubleshooting; 2) Jon could raise money from his loyal high net worth investor base at a time when others could not; and 3) Jon had an unique ability to find, assess and harvest intrinsic value. For me these were the ingredients for a successful launch of a value add opportunity fund especially at a tumultuous and unnerving time. What we needed was the right complimentary talent who shared our values and our intensity. We also needed to develop systems and processes to propel our growth in a controlled manner and to provide consistency and confidence to our investors. Finding the right people took us a few turns, but once we found it, it was an accelerator and something we hold very dear.

Q: In 2012, you were described as “an exemplary role model” by a NAIOP colleague. Has the definition of a role model for women in CRE evolved since then, and if so, how?

A: Wow – that’s a nice compliment. I think young women today have an incredible opportunity in front of them. There is tremendous public awareness and political will to recognize women for their unique attributes and to value them as fellow colleagues, Investment Committee members, Advisory Board members and leaders of their respective communities. This tail wind is real and I hope it propels women in our business higher and faster than ever before. I also hope that it gives women the courage to step out and take initiative to pursue their own businesses and call their own shots in their own voice. The truth is there is much work to do to effectuate this change; some of the work is structural while other is behavioral.

Most real estate companies have less than 10-20% of women in leadership roles and most women in real estate are still more comfortable following or executing than setting the pace or claiming their own seat. I have always been a hands-on learner so to me the most value I can add is to stay in the game, to be a visual and spiritual role model and to offer women the encouragement they need to take their careers to the next level. By still being here and being aware I can also advocate for more equality, compassion and inclusiveness where possible. COVID has not been easy on young working mothers, many of whom have curtailed their careers to help take care of their families. I hope we can collectively make the road back more accommodating for this cohort by providing the level of workplace flexibility they will surely need. Times are changing and I applaud the companies that are changing with it.

Q: When you launched your career in the early 1990s, not only were there fewer women in CRE but the industry was also still recovering from the recession/S&L crisis. What challenges do you see for someone starting out today?

A: Starting anything new can be daunting, but I would encourage young women to 1) learn our trade; 2) take risk; 3) be a creative problem solver; 4) find your voice; 4) be a team player; and 5) show gratitude. These principals are timeless. Maybe the last bit of advice is to encourage young women to take the long view………..overnight success takes about 10-15 years.