Somerset matches its investments with the specific portfolio requirements of each of its equity partners. Our investment process consists of six distinct stages:
Locating pricing anomalies and then devising & implementing business plan to capture that value
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.
- Active local property management;
- Asset management and quarterly performance reporting;
- Divestment of property.