Investment Process

Sourcing and Evaluation

  • Focus on large metropolitan markets that have high transactional volume, strong liquidity, and price transparency.
  • Focus on growing neighbourhoods with improving demographic trends and positive business climate.
  • Focus on properties with market value below construction value.
  • Develop pro-forma models with conservative assumptions that are verified by local partners.
  • Identify source of value in the transaction.

Due Diligence

  • Onsite due diligence is conducted by both Arel partners as well as by an independent property management partner.
  • Work with top third-party service providers to verify assumptions and provide service to the property.
  • Use local contacts to understand source of value in the transaction.
  • Perform extensive relative value comparison to ensure we are buying the best available properties.

Operating Partnership

  • Work with longstanding relationships in property development, property management, brokerage, legal and accounting.
  • Review property performance monthly and visit properties quarterly.
  • Standardize operations using the highest industry standards for property management.

Harvesting

  • Focus on growing NOI for refinancing opportunities.
  • Look to sell when NOI is maximized and alternatives for capital redeployment are available.
  • Dialogue with LPs as to their goals and objectives will guide exit strategy.

 

  • Focus on large metropolitan markets that have high transactional volume, strong liquidity, and price transparency.
  • Focus on growing neighbourhoods with improving demographic trends and positive business climate.
  • Focus on properties with market value below construction value.
  • Develop pro-forma models with conservative assumptions that are verified by local partners.
  • Identify source of value in the transaction.
  • Onsite due diligence is conducted by both Arel partners as well as by an independent property management partner.
  • Work with top third-party service providers to verify assumptions and provide service to the property.
  • Use local contacts to understand source of value in the transaction.
  • Perform extensive relative value comparison to ensure we are buying the best available properties.
  • Work with longstanding relationships in property development, property management, brokerage, legal and accounting.
  • Review property performance monthly and visit properties quarterly.
  • Standardize operations using the highest industry standards for property management.
  • Focus on growing NOI for refinancing opportunities.
  • Look to sell when NOI is maximized and alternatives for capital redeployment are available.
  • Dialogue with LPs as to their goals and objectives will guide exit strategy.