Oversight of Property Managers/ Leasing Agents

We carefully screen on behalf of our clients, property management and leasing agents to ensure that they have a proven track record not only in management and leasing, but also in areas such as research, valuation, financial reporting, risk management, technology and construction. The priority placed on each of the above factors will vary depending on the strategy to be executed for a specific investment. In some instances the best combination of management and leasing services may not be found within the same firm and separate awards of assignment may arise. We closely monitor the performance of the managers and leasing agents, and structures contracts where possible with 30-day cancellation provisions affording the most flexibility for our clients. Management and leasing activities are performed in accordance with pre-approved annual budgets formulated under the direction of our professionals. Strategic changes and tactical decisions that affect property and/or portfolio performance are reviewed and approved by us after consultation with our clients.
 

Buy/Hold/Sell Decisions

Once acquired on behalf of a client, each asset or portfolio of assets is subject to a hold/sell analysis prepared in connection with the annual plan. A property’s performance is reviewed as is its contribution to portfolio returns, if applicable. The decision to hold or sell an asset considers numerous factors including: client objectives, asset sector dynamics, market / submarket status, anticipated capital requirements, rent roll quality, and capital market conditions.

Generally, a property is a reasonable candidate for sale if one or more of the following criteria is true:

  • Property sale proceeds are likely to exceed internal projections of value
  • A property has realized maximum appreciation
  • A property has underperformed relative to expectations
  • A property requires capital improvements exceeding anticipated incremental value to be realized post improvement.
     

Dispositions

Once a property or portfolio of properties is identified for disposition we will present supporting analysis to our client. We then discuss the advantages and disadvantages of various approaches, and if our client agrees with the sale recommendation we will effect the disposition process. As a firm we proactively manage the disposition process, the basic components of which include preparation for sale, marketing for sale and execution of sale. Preparation for sale includes the assembling of documents and other materials. We believe that a critical component of the marketing process is creating an atmosphere of pricing pressure whereby the most capable buyers bid against each other. This is accomplished in part by our selection of the most capable sales intermediary based on some combination of recent experience, sector expertise, strength of buyer relationships and local market knowledge. We work closely with this intermediary to evaluate and gauge individual buyer interest among a small group of identified buyers. We will subject potential buyers to a formal interview process. Upon selection of a buyer we will structure the transaction, negotiate all required documentation, and close the transaction - all the while keeping our client informed on a real time basis.