ACQUISITION
CRITERIA
Summary
Criteria
Summary: what
we seek
Prescient seeks to acquire two different categories of properties: 1) add-value or turnaround (in all varying degrees) properties and 2) properties with stable, in-place rents offered at capitalization rates of 8% or higher.
Prescient has very real, significant, and exceptional ‘turnaround’ skills that result in Prescient’s ability to enter into acquisitions--on a unique reduced risk basis to Prescient because of its skill set--where others see little or no value and to create high value. Prescient’s skills include architecture, general contracting and construction, pure marketing (as distinguished from sales which is a subset of marketing) expertise, financial modeling and management, and economic analysis. These strong ‘hands-on’ skills as well as deep analytical skills allow Prescient to avoid pitfalls like ‘risk telescoping’ and to realistically evaluate projects that can be repositioned for superior value, better managed for improved financial performance, and designed and upgraded for maximum income streams.
First and foremost, Prescient looks at return regardless of commercial property type or location. Prescient will evaluate and forecast return through our own analysis but--as a starting point in its evaluation process--would like all information (significant or otherwise) relating to the property.
The following are our base criteria:
Acquisition
Criteria
Preferred Profiles
Type I: Value-add or turnaround properties. Properties with locational advantages that offer opportunities for increased value through construction rehabilitation strategies such as re-leasing, redevelopment, and/or new construction (i.e. expansion of existing in-place income streams).
Type II: Income producing properties. Properties selling at 8% capitalization rates or greater from Grade B or higher properties with strong credit quality tenants. Long term ground leased properties will be considered.
Preferred Property Types
Any commercial (office, industrial, retail, apartments...et. al.).
Preferred Markets
Far West priority but will consider other markets.
Preferred Deal Size
$3-$15 million, however smaller and larger acquisition opportunities will be considered.
Class A, Class B, & upgradeable Class C
0-100%
Replacement Cost
Existing assets must be purchased at a discount to current replacement cost.
Vast majority of purchases will utilize positive leverage structures to optimize property returns. An expedited financing process through established relationship with prominent lender, Northmarq Capital.
Environmentally impaired properties will be considered.
Due Diligence/
Closing Structure
Can be expedited to meet seller's needs
Purchase of 100% fee simple interest preferred; ground lease structures will be considered.
Unsolicited Offers
May be made if sufficient information is available. Meeting with potential sellers who may not have made the decision to sell is a preferred alternative to unsolicited offers.
Contact information
Please submit all acquisition information to:
Scott M. Pozzi
Prescient Venture Partners, LLC
503-636-2500
scott@prescientventurepartners.com.
All contents © Copyright 2002 Prescient Venture Partners, LLC