2450 Mission Street
San Marino, CALIFORNIA 91108
Bantry Holdings believes a successful portfolio of commercial real estate income-producing properties must be geographically balanced:
- Locations must be distant enough from each other to avoid regional disasters or recessions but close enough to create synergy within the portfolio and facilitate property management.
- Assets must be located in areas promising realistic appreciation of rents and reasonable long-term security of principal invested.
- The properties and their locations must be of quality to satisfy reasonable prudent investor rule without creating annual internal ROI significantly below market rate or an acquisition price per square foot inordinately above or below average cost of the particular property type.
- Assets should be located in stable or appreciating markets, the best balance being about 50% for each.
- Assets in declining markets without reasonable expectation of appreciation must be disposed or repositioned. If possible, there should be an equal balance between product types.
- All assets should have an exit strategy in place.
INVESTMENT MANAGEMENT PROGRAM
The Bantry Investment Management Team will begin the transition process by using the Internal Documentation Checklist to ensure that all pertinent documents are available for each asset. The documentation review is of sufficient detail for the Bantry Investment Manager to thoroughly examine leases, rental rates and the economic viability of the tenants. After the study is completed, our manager begins performing a cash flow analysis of the asset's income stream.
The Investment Manager will analyze both market specific data. Legal counsel will assist in reviewing all loan documents as well as title reports, funding and payment history. Accountants will assist in reviewing all financial data and operating projections. A Risk Management Specialist will review the insurance coverage and the property tax status of each asset to ensure they are current.
The Investment Manager will review all current and past appraisals, reports and studies associated with each asset. Research Specialists also assist in the evaluation of each sub-market providing data essential in determining an asset's current position in the marketplace, rental rates, market values and trends. Throughout an asset's holding period, we will continue to provide market data as well as analyze the annual outside appraisals performed for each of the portfolio's assets.
Our Construction Manager inspect each property. The Construction Manager will assist in reviewing the physical condition (including environmental hazard issues, if any) and health/safety issues associated with each asset. In addition, the Construction Manager works with the Property Manager to evaluate the necessity of capital improvement programs and assist with tenant improvement programs, overseeing the work performed by third¬-party contractors.
The Investment Manager will evaluate the property management and performance to¬-date and gather insight to the market. In addition, the Investment Manager will meet with the tenants to establish a relationship and estimate their level of satisfaction with the property.
Bantry Investment Management will develop a Business Plan for each asset based on all findings and input of our Investment Management Team. These plans will include an executive summary of the asset, an in depth area/market analysis, an investment analysis (including 10 year cash flows and rent roll, capital and operating budgets) and preliminary valuation, and an action plan or strategy for the short term.