Our team works with clients on many levels. From fee-based consulting to commission driven representation, we have a level of service to meet every buyer’s budget and expectations. From the design and implementation of a complex acquisition “machine” to simple transaction representation, the same desire to take care of our client is exemplified in our service.

The process begins with an in-depth client interview to understand the needs, goals and abilities of the client. C-2-CRA has the ability to create, implement and execute an entire acquisition machine or provide turn key transition analysis.

MASTER ACQUISITION STRATEGY

For both the single transaction client and the institution preparing to build a billion dollar portfolio, C-2-CRA has a service level created to meet your needs. Here are some examples of services offered:

MARKET SELECTION

Some clients already have a geographic footprint in mind, while others are open to any market or just do not know where to start. Markets may be selected on several factors:

• Size
• Growth
• Stability
• Transiency
• Access
• Performance
• Competition

Institutional investors will lean toward markets with population minimums, such as 1,000,000. These markets tend to have other institutional players present, with managed revenues, creating the best environment for strong rental rates.

Individual investors may be unable or unwilling to pay higher prices for assets in these markets, or may want the intense competition often found in these markets.

For portfolio builders or buyers (those that want to own several stores), the need may be to look at any transaction within many markets. This more global approach means stronger attention be paid to the transactional attributes.

For single or two store investors, the market selection tends to be much more limited geographically. Proximity to the asset and travel times become of greater importance.

BUILDING THE MACHINE

As a part of a master strategy, C-2-CRA can design, create, implement and put an acquisition machine in place, including all due diligence functions. This would include, for example:

Tracking & Reporting

To keep deal flow moving, avoid conflicts and monitor results, it is important that a sophisticated and well managed tracking summary be structured.

Create an Acquisition Team

Professionals who understand Self-Storage need to be in place to create new acquisition opportunities and respond to seller inquiries. Acquisition officers need to clearly understand the goals and underwriting criteria, to focus on the transactions with the greatest likelihood of closing.

Set Up an Underwriting Mechanism

Every potential transaction must be analyzed to see if it fills the criteria established to reach the acquisition goals. Underwriters or real estate analysts must be trained to recognize hidden opportunities and time-wasting, energy draining dead deals.

Implement Due Diligence

Once a transaction has been prequalified, the due diligence team must be ready to spring into action. Beginning and ending with the legal team, and all the steps in between, prudent due diligence efforts will include analysis of:

• Audits
• Books and Records Inspections
• Competition- Existing
• Competition- Forecasted
• Competition- Risks
• Deferred Maintenance
• Environmental Conditions
• Management
• Market Conditions
• Marketing
• Operations
• Site Personnel
• Site Records
• Structural/Engineering
• Survey
• Title
• Transaction Costs

AND MOST IMPORTANT, NOI VERIFICATION!

This all leads to making sure that the returns and the cap rate are as anticipated in the initial underwriting.

INTEGRATION

Once the acquisition machine has produced results, closed deals, those assets must be assimilated into the investors portfolio. IN some cases, asset managers will supervise individual professional management companies to blend the cash flows with it in the investors portfolio. For others, the management of these assets must become a part of the investor’s daily business activities.

If the management review of the target acquisition was thoroughly conducted, the hand-off to new ownership will be smoother, easier, and less costly.

LEAD MANAGEMENT & PRE-ACQUISITION QUALIFYING

As a part of turnkey service, C-2-CRA can manage deal flow. Commencing with tracking leads, C-2-CRA will screen properties for consideration. IN addition to leads generated by the client, C-2-CRA will create watch lists and evaluate leads it generates from both public and proprietary sources. C-2-C RA can leverage its deep-rooted relationships and marketing efforts. The parent company of C-2-CRA, Coast-To-Coast Storage, maintaining a highly visible brand awareness through its marketing efforts.

INNOVATIVE ACQUISITION APPROACHES

Quite frankly, any broker can funnel leads to a client, and some can even be taught to qualify leads. It is the long term experience of industry professionals that is the genesis of C-2-CRA value added services. For example, C-2-CRA recently evaluated a fully occupied Self-Storage property in a great market. The site is located on the fringe of a large regional mall. There was not much “upside” to the transaction as the seller had managed the property well and the cap rate was low to begin with. Many investors passed because of the low upside. C-2-CRA searched aerial photos of the area and found a vacant land parcel nearby that was zoned for warehouse and was not an acceptable retail location. Conducting some limited preliminary due diligence, the property was qualified as a possible expansion site for the acquisition. The expansion price was too small for a standalone Self-Storage property and did not have the desired visibility or traffic counts.

By hypothecating a 30,000 square foot addition to the target acquisition property the deal changed dramatically and the cap rate has increased from >7% to <9.5%. The transaction is moving through escrow.

C-2-CRA understands the deployment of technology in Self-Storage. We can advise clients to look beyond the box and create new profit channels through innovation.

» Acquisition Myths