831 Black Rock Turnpike, Fairfield CT 06825 | (203) 418-7472 | info@granatarealtyadvisors.com
The focus of GRA’s Value Enhancement Strategy is to seek well located properties with curable deficiencies that can be turned around. Generally these properties have significant deferred maintenance, high vacancy (25%+), and a less desirable tenant profile. Often these properties are foreclosed, or in the process of foreclosure. These are heavily sought after properties, as they offer very high returns (though they carry significant risk).
We will realize value on targeted properties in several ways:
MARKET - Identify properties in markets with demonstrated history of material job growth and significant barriers to new construction.
CAP RATE - Purchase the properties at favorable cap rates on in-place Net Operating Income and at substantial discounts from replacement cost.
CAPITAL - Cure deferred maintenance, and make judicious capital improvements that will allow us to cater to a better class of tenants at higher rents. We will look carefully at improvements that will increase the energy efficiency of the properties, with an eye to the bottom line.*
MANAGEMENT - Employ our intensive, hands-on property management strategies to maximize the revenues of the property, reduce tenant turnover, and enhance operating efficiencies. We will also work to improve the quality of the tenancy by maintaining strict tenant qualification standards. GRA manages properties directly, achieving a greater level of control over property operations than utilizing third-party management companies. This is particularly critical as a significant portion of our returns will be generated by improving property operations.
FINANCING - Purchase properties with placement of financing with appropriate levels of complexity. In the case of a distressed property acquisition, once the property has been stabilized, refinance or sell the property to re-coup as much of the initial investment as possible.
* GRA underwrites properties based upon the VES assuring proper reserves to resolve any existing future maintenance or capital needs and provide sufficient replacement reserves to properly manage rental turns and predictive repair and replacement.