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Property Management Blog

What is a value add deal?

What is a value add deal?

And more importantly why do we specialize in it.

To answer the first question, value add is "the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added."

In other words- we look for properties that exhibit management or operational problems, require physical improvements and/or suffer from capital constraints, thus creating opportunity for upside and long term equity appreciation.

We specialize identifying value-add opportunities for our investors and help in the acquisition and underwriting process. We do this by analyzing a prospective property in terms of its optimum rent, cash flow, return on investment, construction upgrades and location we ensures our owners and investors that their property is optimally positioned to achieve the best possible returns on their investment.

Are background in construction and property management allows us to understand this process from more angles than just a normal investor. We can more accurately predict construction cost with out necessarily relying on the word of a contractor and because we already work with a network of highly qualified professionals we know all work is top quality.

As property managers we understand what it takes to reposition and stabilize tenant occupancy and a how to achieve optimal market rents.

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