We conduct rigorous quantitative, statistical, and qualitative analyses of possible investments utilizing customized models and systems. The few properties and/or assets that survive the initial process are targeted for further, more precise investigation. The ultimate goal of the process is to provide a portfolio of superior properties and/or assets which is diversified across property types and class, and geographic market. We follow a logical path to ensure sound investments, including sourcing, property review, core due diligence, investment approval, and post-investment refinements and updates.
We utilize strong, industry-wide relationships with local, regional, and national lenders, institutional providers, and governmental agencies.
We also call upon a vast, nationwide network of brokerage and advisory relationships, as well as research databases, proprietary industry lists, industry journals, and public records.
Prior to an acquisition, potential investments undergo an initial review process, which may include property visits, market and comparable property analyses, historic performance review, and loan re-underwriting assessments.
The review phase is used to develop a deep understanding of the real estate and/or loans, as well as all pertinent legal documentation.
Core Due Diligence
Once we have determined that a potential investment meets our acquisitions criteria, we then subject it to rigorous core due diligence. Our broad experience in the real estate sector enables us to rapidly accomplish the necessary steps involved in core due diligence and thereby allows us to close quickly on the most complex transactions.
Our core due diligence process generally includes:
1. Review of the property and/or asset data, including financial, local, legal, and market information
2. Stress testing and scenario analyses appropriate for risk management
3. Title searches and documentation
4. Third-party valuations
5. Property inspections, including detailed physical, environmental, and engineering reports as needed
6. Reviews of the local economy and demographics, neighborhood economics and trends, qualitative and quantitative analyses of market competition, area rates, vacancies and market position.
An acquisition requires team review and approval, which is conducted according to a formal investment committee process. A majority approval of the acquisition team is required in order to invest in any real estate or real estate-related asset.
Following acquisition, investments are subject to monthly surveillance and reports with an on-going comparison of results to objectives and updating of the portfolio correlation analysis and the market/comparables analysis. A continuous post-investment review process monitors risk and adherence to risk limits and guidelines. Value enhancements are considered and reviewed throughout ownership. Exit scenarios are also monitored. On-going review enables us to respond as needed to market and financial realities and opportunities to enhance and maximize returns.