During the analysis of a property acquisition, we give careful consideration to the future sale of a property. This careful consideration of an exit strategy analysis is an important approach and is incorporated into our initial acquisition.
Once an opportunity has been identified, due diligence teams from finance, property management, and marketing proceed on separate, but parallel tracks to analyze a property's potential. The neighborhood, demographics, job growth and market analysis are key factors in the initial financial analysis of capital expenditures, income and operating expenses. This data is compiled into operating budgets and five to ten year projections. Depending upon the property, the budgets may include lease-up, rehab and stabilized budgets. The goals of these projections are to calculate the return on investment and the associated risks.
After rigorous due diligence, the final acquisition approval is determined by Management, who is ultimately responsible for the performance of each property acquired.
Grand Peaks owns and manages communities that range in character from Section 42 tax credit properties to class A trophy communities. As such, the acquisition criteria are broad, focusing on projects across the United States of 150 units or more, with a market value greater than 10,000,000.