Acquisitions
We are seeing significant opportunities, particularly related to office buildings and various classes of multi-family properties. In the first quarter of 2003, for example, 23 office buildings (nearly 3,300,000 sq. ft.) are either on the market or poised to come on the market. All are non performing or opportunistic in nature. Casualties of the “demand recession” prevalent in much of the DFW metroplex and other technology-driven cities, most were performing and well occupied until the last 18 months. In this downturn, the structure of the financial institutions taking control of troubled assets will favor smaller, efficient investors armed with knowledge of specific cities and submarkets.
Understanding When
Dallas created approximately 75,000 jobs per year in the 1990s; more than any other city in the country. The fundamentals that were the catalyst for past job growth remain unchanged. Dallas is poised to lead the country again.In the first two quarters of 2003, we have seen a signifigant increase in the volume of potential transactions, evidenced by note defaults, loan restructuring, distressed sales, restricted credit facilities and foreclosure sales.
After location, timing has become the most critical element of real estate investment. Taking a sideline position for the last three to four years and waiting to jump into the acquisition game has been fortuitous.
We won’t do deals to generate fees or stay in the game.
Our Principals Act As Gatekeepers Of The Transaction.
CroesusPartners embraces a team, approach to acquisitions. But the personalized service and hands on approach of the principals differentiates our philosophy from that of other real estate partnerships.
We beleive our partners deserve a point man knowledgeable with each step of the process rather than looking to accountants, leasing agents, and property managers who can't provide an accurate depiction of the entire deal.
Each Stage of the Approval Includes:
- Preliminary analysis
- Acceptable terms for letter of intent
- Final terms of the contract to purchase
- Diligence and third party reports
- Financing and capital structures
- Post-closing numbers and budget
- Objectives and strategic planning
- Cost benefit analysis
- Sale and or refinancing
"We are certain that recovery is
not a question of 'if' but 'when'."