Acquisition and transactional modeling, risk analysis, and thorough due diligence go into every potential acquisition
We have developed a proprietary acquisition and transactional model to analyze and underwrite potential investments. The model considers property-specific information, local economic factors, local market factors, investment return parameters, and financing parameters. We also conduct a thorough risk analysis to determine if the opportunity fits with our objectives.
We perform extensive financial, property, and market due diligence prior to closing on a transaction. Some of the factors we consider include:
- Researching the local submarket and surrounding submarkets;
- Performing thorough analysis of potential debt financing options to obtain the best possible execution (agency or portfolio lender) for each transaction;
- Examining with counsel the chain of title and all title and survey-related issues;
- Obtaining third-party reports including an appraisal, Phase 1 environmental report, engineering report, soil and geological reports, and any and all other reports, when necessary;
- Researching local municipal data including zoning ordinances, code violations, permit issues, tax data and crime/fire activity, and housing authority compliance, among other items;
- Examining the operating history and other data provided by the Seller, as well as performing an extensive review of the on-site files to create an operational performance evaluation;
- Reviewing capital improvements history at the property;
- Performing a detailed property condition assessment inspection of the entire property including a walkthrough of each unit, all common areas, and all property amenities with an experienced professional inspector;
- Interviewing the property staff, as well as the regional property supervisor and local area managers;
- Reviewing all recent sales and rent comparables for the area;
- Obtaining bids from local vendors for any capital work to be performed after acquisition as well as vendors who will perform contract services;
- Performing all other financial, legal, and inspection due diligence that we deem appropriate to make an informed financial decision.