ARH - Aberdeen Realty Holdings - investment advisory asset management

By: Aberdeen Realty Holdings  09-12-2011
Keywords: Real Estate, commercial real estate, real estate investment

/ / Investment Advisory & Asset Management

ARH Advisory Services are designed to help owners and developers of income producing properties, debt investors and other institutional investors make informed, profitable decisions on commercial real estate acquisitions, developments and capital issues. We provide unsurpassed market expertise on a wide variety of property types through seasoned finance professionals responsible for capital solutions and investment decisions in the billions. Our objective is to provide the expertise and direction you need for superior real estate investment returns.

Acquisition & Investment Diligence:

We support our clients through providing a broad array of due diligence services for all types of commercial transactions whether at the asset level for property investors or for debt investors needing underwriting diligence in connection with purchasing whole-loans, B-Notes and mezzanine loans or for approval of loan assumptions. Services include but are not limited to the following: lease abstracting, estoppel reconciliation, review of 3rd party reports, cash flow testing & stress analysis, investment risk & mitigant analysis, comparative property analysis, tenant rollover and recoveries assessment, CAPEX and PIP requirements & compliance and site inspections.

Investment Analysis & Project Consulting:

ARH can provide comprehensive real estate investment advisory services to clients including:

  • Market strategy formulation for portfolio acquisitions & divestments
  • Cash flow modeling from source documents including operating statements and formulation of proforma statements including evaluating market assumptions and revenue & expense projections
  • Buy/hold/sell analysis and recommendations
  • Modeling investor returns and structuring investment vehicles to satisfy investor preferred returns, promotes and IRR requirements for all participants
  • Ongoing performance analysis, return validation and cash flow waterfall management

Asset Management Assistance

ARH can provide insight, guidance and resolution on a wide range of asset management issues whether they are related to a narrow property specific matter or broader portfolio wide investment management considerations. At the asset level, examples of issues we have assisted on include:

  • Evaluating alternative hotel branding affiliations by application of econometric analysis using multi-dimensional panel data sets to determine property performance and investor return maximization,
  • The development of annual budgets and proforma financial statements including stress testing analysis to identify appropriate working capital reserves,
  • Interfacing with servicers to ensure that required property financial statements and other reporting requirements are satisfied,
  • Monitor 3rd party property manager performance under property management agreements including validation of adherence to cash management protocols,
  • Review and validation of 3rd party incentive management fees owed under management agreements,
  • Preparation of construction draw requests and management of CAPEX reserve fund draw process with lenders.

On a broader level, portfolio management services focuses on maximizing the potential of the overall investor portfolios. Tailoring the portfolio strategy for clients' needs and objectives, we specifically emphasize quantifying and understanding leverage, credit quality and diversification risk and implementation of appropriate risk mitigation strategies. Over time and with the addition of assets to a portfolio, market, asset type, tenant and demographic concentrations can skew an investor’s targeted risk to return expectations as set at inception and rebalancing can only be achieved through active portfolio management.

We treat each investor portfolio as a separate going concern. Developing a thorough knowledge of asset level and portfolio wide IRR requirements, cash flows, yields, returns, leverage, working capital and lines of credit is only part of ARH Advisor’s comprehensive portfolio management approach. The group also provides cash flow projections for each asset and creates leverage models to project and continually update the total return on equity. Working with ARH's finance team, we can coordinate all the capital markets and institutional financing efforts for real estate and mortgage loan portfolios under management. ARH’s goal is twofold: to appropriately leverage the portfolios based on the client’s risk and return parameters and to increase internal rates of return. Together with the network of lenders and alternative finance providers with whom ARH has developed relationships, we are able to meet these goals with creativity and innovation.

Keywords: Asset Management, cash flow, commercial real estate, Due Diligence, Estate Investment, Flow Modeling, Real Estate, real estate investment,

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