Strategic Opportunity: Portfolio Formation

A. Overview

  • In today’s frothy environment, many individual properties and portfolios will come to the market with the hope that low cap rates will continue. As interest rates rise and values compress, inflation driven operating expenses and flat rents will not support current values.
  • Prices will vary by market and property type, but today, broadly speaking, much serviceable commercial property is impacted by changing requirements in the back end of the business cycle.
  • New construction will be a significant competitive factor still for several years. Advances in technology and building design requirements will place new product well ahead of obsolete operating systems, designs, and energy requirements. Underwriting will need to consider the newly competitive product when developing investment models. Absence of new construction for a decade widens the gap between new and old product moreso than we have experienced before in this generation.
  • We continue to view direct investment in commercial real estate (CRE) as an opportunity. Our principals and affiliates have extensive experience developing, constructing, improving, owning and operating offices, retail centers, and mixed-use projects. Our expertise in management, finance and construction is the backbone which supports every opportunity we identify.

B. Value Added By LANDCO

  • Acquisition
    • Market research
    • Analysis and underwriting
    • Business plan
    • Entity formation and financing
  • Operation
    • Asset management, oversight, compliance and risk-management
    • Analysis, reporting
    • Construction and capital improvements
    • Recommendations and execution re refinance or sale
  • Disposition
  • Manage listing and resale
  • Adding Value
    • Repairs and Replacements
    • Site Improvements
    • Added Amenities
    • Interior Remodeling
    • Repositioning
    • Management
    • Organization
    • Financing

C. Risk Management

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