Asset Management Services

 

Oversight of Property Managers/ Leasing Agents

Arch Street carefully screens on behalf of its 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. Arch Street closely monitors 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 Arch Street professionals. Strategic changes and tactical decisions that affect property and/or portfolio performance are reviewed and approved by Arch Street after consultation with our clients.

Monitoring Rights in Joint Venture Documentation

Arch Street frequently represents clients in joint ventures for the acquisition or development of real estate.  In addition to performing the traditional acquisition advisory services necessary to complete a real estate acquisition, Arch Street also provides clients with specific asset management services related to the details of joint venture structures. These additional services ensure that Arch Street clients are receiving meaningful reporting from partners (Arch Street works with partners on the design of the reporting package), accurate information in periodic reports (Arch Street checks financial models prepared by partners for accuracy), and sound recommendations from partners (Arch Street reviews all partner recommendations from the prospective of Arch Street's clients focusing on areas where conflicts can arise - fees, promotes, related party transactions, etc.) Arch Street's presence affords the client the comfort of knowing that carefully negotiated rights in a joint venture agreement will be carefully monitored and enforced to the clients benefit, through the life of the joint venture.

Providing Timely Operation Feedback to Joint Venture Partners

Arch Street assists its clients in overcoming one of the significant hurdles in attracting joint venture investment opportunities with U.S. based real estate partners - i.e., the concern by partners that a non-U.S. based investor will be inaccessible for real-time decision making relating to U.S. investments. When Arch Street explains its function as th "on the ground" representative of its clients with the ability to attend meetings, tour properties, participate in conference calls and make decisions on a U.S. timetable, the concerns of a U.S. partner are usually alleviated. It is the job of Arch Street to bridge any time zone or work week differences and ensure that decision making is always conducted in a manner that maximizes the opportunity for a successful investment. To insure that its clients are always well informed as to critical joint venture decisions, Arch Street prepares detailed memoranda for its clients to explain issues and schedules calls to review these memoranda at times and on days that are convenient for Arch Street 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 issues, market and submarket issues, property condition and anticipated capital requirements, rent roll quality and rollover, and capital market conditions.

Generally, a property is a reasonable candidate for sale should one or more of the following criteria be 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 Arch Street will present supporting analysis to its client, discuss the advantages and disadvantages of various approaches and, if the client agrees with the sale recommendation, Arch Street will effect the disposition process. Arch Street proactively manages 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. Arch Street believes that a critical component of the marketing for sale component is creating an atmosphere of pricing pressure whereby the most capable buyers bid against each other. This is accomplished in part by Arch Street selecting the most capable sales intermediary based on of some combination of recent experience, sector expertise, strength of buyer relationships and local market knowledge. Arch Street works closely with this intermediary to evaluate and gauge individual buyer interest among a small group of identified buyers. Arch Street will subject potential buyers to a formal interview process, and following selection of the buyer will structure the transaction, will negotiate all the required documentation and close the transaction, all the while keeping the Arch Street client informed on a real time basis.

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