Investment Process
- Emphasis on large metropolitan markets with high transactional volume and price transparency.
- Focus on growing neighborhoods with improving demographic trends and positive business climate.
- Focus on properties with market value below replacement cost.
- 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 Arel partners as well as an independent property management partner.
- Work with top third-party service providers to verify assumptions.
- Use local contacts to understand source of value in the transaction.
- Perform comprehensive relative value comparison to ensure the properties we are purchasing are at or below market prices of competing 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 best in class 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.
