We evaluate the complete investment story before capital is committed.
Evaluate employment, population, rents, supply, occupancy and competitive positioning.
Reconcile T-12 performance, rent roll, concessions, other income, expenses, taxes and insurance.
Stress-test leverage, DSCR, interest rates, amortization and lender constraints.
Identify realistic NOI growth from operations, renovations, revenue management and expense control.
Test weaker rent growth, vacancy, expenses, exit cap rates and longer hold periods.
If the returns do not compensate for the risk, we walk away.