Southern California: Los Angeles County,Orange County, Ventura County.
We selected primary markets meet or exceed several key investment fundamental thresholds. The primary factor relates to basic economics of supply and demand and trending geographical data. These markets continue to enjoy positive population and community expansion. Additionally, these markets continue to attract an educated workforce due nearby Universities and influential corporate institutions. These primary markets are considered mature and offer positive real estate opportunities, especially within those cites who wish to “re-brand” and re-develop their commercial centers. Within some of these markets, certainly not all, these constraints are the effects of:
1. Continued population growth and the increasing demand for both housing units and commercial real estate (services and business to business);
2. Changes in demographics and technological advances that transform communities from Baby Boomers to Millennial generations;
3. Lack of developable vacant land;
4. City policies that restrict zoning and entitlements for new development (built-in barriers to entry);
5. Government policy in water conservation, new seismic standards, air quality control, anti-growth/development sentiment and the latest energy rating service all being imposed on building owners
6. Location within communities of highly educated work-force population who demand high quality services.
Additionally, most of the targeted submarkets adhere to Our investment criteria investment criteria regarding above-average projected job growth. Finally, our selected markets currently enjoy solid commercial occupancy levels (exceeding 85%), which often leads to future potential rent growth. The market fundamentals, along with quantitative “barriers to entry”, create an environment suitable for productive capital investment. In addition, changes in governance pose confusion and additional hurdles for un-sophisticated property owners.
Added Value & Tenant Focus
dealingsqft principals have directly or indirectly negotiated/advised/sold/leased or financed over 400 million square feet of commercial real estate, including the acquisition and reposition of a portion thereof. We capitalize on our proven acquisitions success by acquiring assets with solid physical plant attributes. Property location will be very important along with the viability of the current asset compared to its competitive set. By acquiring assets within “A” and “B” quality locations along with solid physical attributes, we can and will add value by implementing a creative renovation and/or reposition program (should the asset require it) with the goal of creating incremental cash flow generation and asset appreciation. Any “initial” renovation will include, but is not limited to, the following:
• Converting short term leases into long term contracts.
• Exterior landscaping upgrades and replacement of all deferred maintenance items.
• In instances of high property vacancy, we will focus on strategic campaigns of “lease-up/marketing”.
• Partnering with high quality and trustworthy on-site management and or construction teams.
• Implementation of Partner Alliance with PND Consultants, a skilled property management firm, to incorporate expense recovery and bolster income through our team of managers and accountants.
DEALINGSQFT believes that by implementing its’ “tenant-focused and hand-on” management style, combined with an innovative and strategic “capital improvement campaign”, these acquired assets can be repositioned to justify higher rent growth and cash flow with considerably less downside risk. Unlike others in the industry, DEALINGSQFT believes that it is possible to sustain high quality renovation and operations while building market share and economies of scale.