AQUISITIONS & INVESTMENTS |
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following information is designed to provide the real estate professional
an overview of how Kellogg Properties, Inc. conducts it's business
in these various areas. |
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Acquisitions,
Dispositions and Financing
1. Prior
to any property acquisition an understanding of the market must be
attained: |
- Demographics
- Existing
conditions (e.g., current rents, demand for space, level of
building)
- Trends in
the marketplace
(e.g., under- or over-building, rising or falling rents, increasing
or decreasing concessions)
- Competitive
environment
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| 2.
To evaluate a potential acquisition significant due diligence must
be performed, thorough underwriting completed and a long term detailed
financial plan prepared: |
- Develop realistic
key assumptions based on market conditions (e.g., rental rates,
tenant turnover rates, tenant improvement allowances, capital
expenditures)
- Review all
current leasesEvaluate current operating expenses
- Review environmental
status
- Evaluate
physical condition
- Interview
current tenants
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3. For
acquisitions, dispositions and financings it is necessary to keep
abreast of financial markets, e.g.;
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- Current capitalization
rates
- Lender's
current terms
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| 4.
Maintain consistent contact with current lenders; respond to their
inquiries on a timely basis |
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