THE PROCESS
THE PROPERTY SEARCH
How We Find Properties
- Our Network
- Real Estate Brokers and industrial contacts we have fostered relationships with.
- Online CRE Marketplaces
- Crexi, CoStar, LoopNet, etc.
Weekly Property Meetings
After establishing a preliminary list of possible acquisitions, we meet to further evaluate the properties and decide if we want to proceed with underwriting.
Underwriting
We then complete an initial underwriting of the property along with an in-depth evaluation. (sale and lease comps, property visits, etc.)
Letter of Intent (LOI)
Once we have decided the property fully fits our criteria and will provide strong returns, we execute a LOI on the property. After negotiations with the seller, we enter into a purchase contract, leading us into due diligence.
DUE DILIGENCE
PRoperty Condition
- Acquire all previous property reports and financials from the seller.
- Obtain the following third-party reports:
- Environmental Reports, Property Condition Assessment, Property Survey, Roof Report, HVAC Inventory, etc.
Budget development
- Evaluate the immediate and future CAPEX needs of the property following a review of all property reports.
- Conduct tenant interviews to determine their use of the space and the required tenant improvement cost.
- Assume vendor contracts for utilities and property maintenance.
Business Plan/Closing
- If necessary, we work with third-party leasing agencies to develop a lease plan, including lease-up times and estimated rents.
- We finalize our business plan in preparation for the closing of the property.
PROPERTY MANAGEMENT
Capital Expenditures
- Following the closing of the property, we carry out any planned capital expenditures. (roof replacements, parking lot resurfacing, white boxing, etc.)
- We prepare any vacant spaces for occupancy by a tenant.
Property Audits
- We conduct quarterly property audits of every building in our portfolio. These include:
- Inspection of building exterior/interior.
- Safety and environmental assessments.
- HVAC and mechanical systems review.
- Maintaining tenant relations through regular communication.
Property Management Benefits
- Exceptional property management ensures that our properties are maintained at the highest level to serve our tenants.
- By being proactive with property maintenance, our properties are able to realize the highest value at disposition.
Quarterly Reports and Distributions
- We provide quarterly reports to our investors, informing them of property financials and any important updates that have occurred.
- Distributions are made to investors quarterly, based upon the cash flow from the properties in which they are invested.
