2450 Mission Street
San Marino, CALIFORNIA 91108
Acquisition Services are a separate, dedicated function performed by professionals whose are responsible for finding and acquiring properties that satisfy our clients’ requirements. Whether it be real estate equities or mortgages involving industrial, retail, office, research and development, or multi-family income producing properties, our acquisition group has an experienced, competent team to locate the investment and to provide the full range of acquisition services, including pricing, transaction structuring, due diligence, market research coordination, and evaluation of technical experts (such as environmental studies).
Tactics for Acquiring New Assets
An essential element of our investment management team is providing recommendations regarding new income-producing commercial properties. The best method is based on four tactics:
1. Establish minimum requirement for internal rate of return
After the geographic areas have been designated, the size and type of the product are determined and the minimum requirement for internal rate of return is established. Then the investment management team locates the best quality product available.
Regarding locating the best income producing properties available, our investment management team has been most successful not by outsourcing client acquisition needs exclusively through any particular broker, but by approaching the listing agents of the best available properties as principals directly on behalf of our client. Often we source the best deals, however, we know and use all established brokers, both large and small. In fact, many of the best investment properties we have located have been through individual agents with deep roots in their community.
2. Cultivate critical relationships
We will cultivate relationships with those individuals influential in and knowledgeable about business and commercial real estate in target areas. Our contacts include business development officers for local Chambers of Commerce, established bankers, members of the planning departments of designated cities, title officers and local insurance agents.
Most importantly, we rely on direct contacts of our network of developers, owners, leasing agents and property managers.
3. Product grading
Once the best product has been located, the investment management team quickly grades it. The best deals are toured, photographed and analyzed. Comparable sales and competitive properties are inspected. Data is verified with Internet resources. The property’s income and expenses are then projected for the next ten years using the Argus spreadsheet program. A recommendation report is prepared for submission that will include our new marketing strategy for the asset, our recommendation for new capital expenditures (if any) and more importantly, the exit strategy.
4. Coordination of closing
The investment management team coordinates escrows, closings and recordings. Immediately upon closing, we make certain the property management team is on the job, increasing efficiency and adding value.
Please read about our Acquisition Analysis click here.