Acquisition and Joint Venture Advisory Services

 

Transaction Sourcing

Through frequent dialogue with its clients, Arch Street creates a well-defined investment criteria for each of its clients which includes desired property sectors, targeted geographic regions, acceptable risk parameters and appropriate investment return thresholds.  Arch Street then uses its established network of public and private real estate owners, developers and brokers to source investment opportunities on behalf of clients.

 

Acquisition Due Diligence

Arch Street coordinates all required due diligence to assist clients in making fully informed investment decisions. These diligence items include:

•  Touring assets, competing properties, and conducting market surveys

•  Engaging and reviewing property condition, engineering, and environmental reports

•  Interviewing local leasing and sales brokers to gain insight into local market influences and trends

•  Reviewing leases and confirming material terms

•  Verifying historical operating statements and testing revenue and expense projections

Investment Projection Modeling

Arch Street creates a detailed investment model for review with its clients, which reflects the results of due diligence and indicative feedback from potential financing providers. The models are customized to address each client's particular requirements, but typically include projected:

•  Property level revenues and expenses on an annual and monthly basis

•  Costs of financing and capital needs

•  Fees to advisors

•  Proceeds from disposition (including profit sharing and "promotes" if a transaction is structured as a joint venture)

•  IRR for the entire project based on a combination of the above factors. 

Additionally, Arch Street models are also used as the basis for obtaining financing commitments to fund acquisitions. Finally, Arch Street models are often provided by the client to their tax advisors and serve as the basis for creating tax efficient ownership and financing structures. 

Financing Advisory Services

Arch Street professionals have many years of financing experience in the capacity of both borrower and lender and leverage that experience to obtain for Arch Street clients the most competitive and flexible financing terms available from the financing market.  Arch Street has structured and closed financings on behalf of clients with traditional banks, investment banks, securitization lenders, life insurance companies and mezzanine funds.  Depending upon the client's circumstances and desired course of action, Arch Street can arrange financing directly or alternatively can oversee the work of a loan broker.  In each case, Arch Street negotiates on behalf of its client with several potential financing providers and then presents to the client a summary of the most attractive financing options available.  Once the client has selected a financing option, Arch Street negotiates the financing commitment and then oversees counsel in the structuring, documentation and closing of the financing.

Transaction Closing

Arch Street also oversees counsel in the documentation of every client acquisition.  With legal, investment banking and acquisitions experience, Arch Street professionals are well positioned to offer clients important leadership in the negotiation, documentation and closing of every acquisition.  Arch Street will ensure documentation compliance with negotiated term sheets or letters of intent for acquisitions, financings and joint ventures, as applicable.  Arch Street will highlight for the client areas of particular concern and areas requiring particular client focus to leverage a client's time most efficiently.  Arch Street will ensure that legal counsel and other third party professionals adhere to aggressive schedules to complete a transaction within the client's time requirements.

Shari'a Compliant Acquisition and Financing Services

Arch Street is considered a leading advisor to clients seeking real estate acquisitions and financing structured in a Shari'a compliant manner.  Since 2001, Arch Street professionals have completed more than $2 billion of Shari'a compliant real estate acquisitions, joint ventures and financings.  Arch Street has been a thought leader on strategy and structuring ideas relating to the acquisition and financing of real estate on a Shari'a compliant basis and is often called upon to speak on the topic of Shari'a compliant real estate investing by international publications and professional associations.

Joint Venture Advisory Services

Arch Street frequently represents clients in joint ventures for the acquisition or development of real estate.  These joint venture relationships have included partnerships between Arch Street clients and private owners, private developers, public REITs and private REITs.  In addition to performing the traditional acquisition advisory services necessary to complete a real estate acquisition, Arch Street also provides clients seeking joint venture relationships with specific advisory services related to the details of joint venture structures including joint venture governance and decision making; fees associated with acquisition, asset management and disposition; performance based "promotes"; dissolution/exit mechanisms; buy-sell/change of control procedures; exclusivity and performance reporting.  An article written by Arch Street on the topic of Joint Venture investing appears under a publication issued by the Association of Foreign Investors in Real Estate (AFIRE) - "Real Estate Joint Ventures with Islamic Investors: Understanding the Keys to a Successful Relationship.".

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