Locating pricing anomalies and then devising & implementing business plan to capture that value

Somerset matches its investments with the specific portfolio requirements of each of its equity partners. Our investment process consists of six distinct stages:

CLIENT NEEDS ASSESSMENT

  • Conduct a briefing to determine the investor’s precise needs and objectives;
  • Explore alternative investment routes to find the right balance of risk and return, and to match the investment with the specific portfolio requirements of the investor/equity partner;
  • Design a customized investment strategy, based on thorough knowledge of the client’s needs and diligent research of the market;
  • Devise appropriate investment structure – Separately Managed Account, Direct Ownership or Limited Liability Company/Pooled Fund.

MARKET DUE DILIGENCE

  • Conduct interviews and market tours with market experts;
  • Review and analyze local real estate market;
  • Review and analyze economic data.

PROPERTY OPERATING DILIGENCE

  • Review historical operating statements and budgets;
  • Interview all major tenants;
  • Procure property appraisal;
  • Review pricing with major service providers;
  • Build pro-forma budget;
  • Review all leases and lease correspondence;
  • Rebuild Argus financial model and confirm new model ties with pricing.

PROPERTY PHYSICAL DILIGENCE

  • Procure Property Condition Report and Phase I Environmental Report;
  • Retain discipline-specific consultants (MEP, Structural, Elevator) to review property condition and preventative maintenance programs, and to estimate base building and capital expense needs;
  • Review and analyze historical base building, leasing and capital expenses.

PROPERTY LEGAL DILIGENCE

  • Legal review of all lease, title, survey, entitlement and zoning issues;
  • Review of property historic litigation and insurance losses;
  • Structure and procurement of optimal financing;
  • Close transaction.

POST-ACQUISITION SERVICES

  • Active local property management;
  • Asset management and quarterly performance reporting;
  • Divestment of property.