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Disposition Prep |
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Institutional investors generally sell assets in conformity with the investment timetable created before purchase, tempered by subsequent economic and market events. Preparing the property itself for disposition generally includes—but may not go beyond—freshening its appearance and addressing structural issues. To command a standout sales price, these improvements must be coordinated with a four-month program of unit upgrades and promotion that positions the rent roll to display the asset’s full future income potential. NOI specializes in preparing assets for sale at their maximum exit value. Our services include:
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Thorough analysis of the property’s revenue potential in the context of economic conditions, submarket demographics and competition, and characteristics specific to the asset;
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A detailed plan for cost-effective upgrades and over-promotion to maximize rental rates on the 20% of units leased in the final months before attempted sale;
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Budgets for this strategy to improve the future value of the rent roll;
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Assessment of current management’s capability to execute the plan;
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Recommendations for capital spending to address structural issues, recurring maintenance problems, security issues, and other value-sensitive factors;
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Analysis of and suggestions to improve execution of Performance FundamentalsSM, to enhance financial results in the months prior to sale;
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A written report detailing all analysis and recommendations;
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A web conference or in-person meeting for the client to raise questions, discuss implementation, or challenge our findings; and
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If requested, ongoing consultation to assist with carrying out our revenue management plan and/or to supervise capital improvements.
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No matter how efficiently a seller controls operating expenses, buyers and their lenders tend to rely on industry norms to forecast operating costs and capital expenditures. But a demonstration of enhanced future revenue translates into a higher expected NOI, a larger purchase loan, and a higher sales price. NOI offers institutional investors a compelling cost-benefit yield that maximizes profit from disposition.
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| Case Studies |
| Disposition Prep |
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