We strongly believe that the most value in any property is created before you actually own the property. Therefore we focus on a very extensive multi-phase due diligence process.
Phase 1 – The Market: Before we even find a property to acquire, we conduct a thorough analysis of the market. This involves studying the demographics and economic drivers, meeting with a variety of industry professionals in the market, and extensive personal touring of each sub-market within the city. We identify cities with good real estate market fundamentals.
Phase 2 – Pre-Offer: Once we locate a potential acquisition within an approved market, we conduct a detailed preliminary investigation of the asset. It is a worthwhile exercise which allows us to be very precise with how much we are willing to pay for the asset.
Phase 3 – Under Contract: Once the property is under contract, we perform the most detailed of the three phases of due diligence. It is at this point that we can get into the nitty-gritty of the deal and confirm all the findings of the previous two phases.
Phase 3 includes:
- Environmental Study
- Physical Inspections
- Lease Reviews
- Tenant Interviews (when possible)
- Sourcing and negotiating financing
- Legal and Accounting investigations
- Pro Forma Financial Projection Stress Tests