Land-When analyzing, we consider zoning, future land use, easements, proximity to desired designations depending on use, demographics and future trends, flood plain status as it affects ongoing insurance, comps, and exit strategy. We understand and our intimate with various types of real estate and current construction costs which will greatly assist the purchase on the front end.
Residential Properties-Purchasing Residential assets for most can be the largest investment in one's life. We look and compare details that may go un-noticed by most but that is why we want to be there for our clients as this analysis is the same concept when purchasing an income producing building or land. For example, we look at the truss plans to see if ceilings can be raised which can give the perception of a larger space as that can create usually double the value than the costs associated. We do very detailed analysis for comp puposes that was fine tuned by the best in the business nationwide.
Retail Buildings-Depending on the needs of an investor and size/location of strip, we have several ways to underwrite. We have the relationships with all the acquisition executives at all the major retailers. They have been acquired through years of attending the ICSC shows and have also made it a point to network with the main retail owners and brokers in our areas.
Industrial Buildings-There are about 10 main brokers and 4 REIT's that account for almost 60% of the industrial market representation in SE Florida. Our company has been fortunate to accumalate relationships with all. We understand these assets because we spent 3 years on a project valued at $200M of more than 29 acquisitions of existing buildings strategically hedged by location and class for our investor. We look carefully at column spacing, age, future improvements needed, % of office space, floor psi, clear height, type of power, number of roll up doors, viability of leases in place if investment, proximity to airports, rail, ports, and major arteries. These are just some of the things we consider when doing our valuation on these buildings.
Office Buildings-We will look at the usual things such as comps, vacancy, build outs, finishes, parking, expansion possibilities, etc., but it is our creative thinking that will be vital in the end. When purchasing office, retail, or industrial, it's so important to really understand the leases in place and the outs they have. Tenants come and go and to keep a project from having any hiccups, our firm will go out to existing tenants in the marketplace to make them aware of our investor's building. We also talk with other office building owners and the main office brokers in the area to understand the submarket and tenant supply better beyond that of just relying on costar and loopnet reports.
Distressed Properties-This can cover any of the above types of real estate. Whether our client wants to buy paper and foreclose, buy at auction, puchase from the bank directly, or work out a short sale, we have the knowledge and contacts to get it done. We have had past dealings and continue to stay in weekly contact with all banks of all sizes that have commercial and residential loans in Southeast FL and Chicago North that are in distress. We also network with the top foreclosure attorneys, major auction companies, and REO brokers in our markets. We attend foreclosure sales and auctions frequently in SE Florida. In addition, we highlight and track foreclosure properties in the business journal and other mediums on a daily basis. These processes can be the shortest closings or the most drawn out.