Acquisition Criteria

Submittal Process | Frequently Asked Questions

Birtcher Anderson Realty, LLC acquires investment properties located primarily in Southern California. The company is structured as a privately held investment company and is based in San Juan Capistrano, CA with several field offices located throughout the western United States.

Following is a summary of general investment guidelines:

Size of Deal
Generally, Birtcher Anderson Realty, LLC is interested in acquiring properties valued between $10 million and $75 million. Opportunities of greater value will be seriously considered on a case-by-case basis.

Type of Property
The company is interested in acquiring CBD and suburban in-place office, industrial, anchored retail and multi-family properties of at least 200 units. There is particular interest in acquiring properties that present an opportunity to create or enhance value through better management and leasing programs or redevelopment. However, stabilized secure returns meet a segment of our investment profile as well.

Deal Structure
Properties can be acquired on an all-cash or leveraged basis. Due to the private nature of Birtcher Anderson, other creative structures are often employed. Acquisitions will be capitalized through well established Birtcher Anderson Realty relationships with both private capital and institutional co-investors.

Location
It is the company’s objective to focus primarily on Southern California. However, properties located in Phoenix, AZ and Las Vegas, NV are also included in our portfolio.

Target Returns
The company will be aggressive for the right situation. Risk-adjusted yield expectations are compatible with current real estate market and capital market conditions.

Acquisition Submittal Process

Submit to:

Information needed for preliminary evaluation:

4. Rent roll (current and proforma)

• Tenant name and area

• Lease commencement and termination dates

• Expense stop detail

• Major retail tenant sales information

• Vacant space detail

• Options

• Escalations

• Commissions due (if any)

5. Operating expenses (past three years)

• Are there base year provisions?

• CAM

• Taxes (at project purchase price)

• Insurance

• Other

• Any Government supported incentives (interstate trade, tax rebates or credits)

6. Loan detail

• Name of lender

• Due Date

• Original and current balance

• Interest rate

• Amount of loan payment (interest only or amortized?)

• Original amortization term

• Lock-in and pre-payment provisions

• Terms and cost of loan assumption

7. Argus or similar valuation review

Frequently Asked Questions Concerning Our Acquisitions Process

Acquiring properties with a development or re-development value enhancement component is a high priority for Birtcher Anderson Realty.

We are willing to present unsolicited offers only if basic information is available in order to properly value a property. The company is always open to meeting with owners who have not yet made the decision to sell.

It is the company’s objective to acquire only those properties that enjoy a competitive location or sites that are evolving to such a status. There is a strong bias for in-fill locations. All properties must have an identified investment strategy.

The company enjoys significant relationships with institutional partners having a strong interest in acquiring core type assets. Consequently, Birtcher Anderson Realty, LLC will pursue such properties as a partner and/or as an advisor to the institution.

Most classifications of industrial property are of interest, including warehouse/distribution, multi-tenant light manufacturing, incubator and tech-flex in the appropriate markets.

To a limited extent. The preference is for bulk warehouse, distribution or light manufacturing, multi-tenant properties, which are clearly part of an established sub-market. Special attention will be given to the challenge of re-leasing the property.

We will pursue both CBD and suburban projects with a minimum rentable area of 75,000 square feet. In addition to the normal issues of competitive lease rates, special attention will be paid to parking, floor plate configuration and efficiency, physical plant and proximity to commercial amenities. The asset's position in the investment cycle for similar properties will be fully taken into account as well.

The highest priority is for well located class “B” and “C” projects of at least 200 units.

Shopping centers must be anchored (or shadow-anchored), preferably by a well known grocer. Centers anchored by ethnic specialty grocers will be considered, as well. Health clubs and theaters are considered secondary tenants due to lack of credit, special nature of improvements and parking requirements.

Yes. Important factors will be taken into consideration such as the remaining term of the lease and the predictability of future ground rental payments and ability to finance. Higher yields will be required for properties subject to a ground lease.

Yes, but not less than a 50% position relative to governance. Birtcher Anderson Realty, LLC will require that it have ultimate control over the asset.

The deal size limits of $10 million and $75 million are “soft” guidelines. However, there is greater likelihood that Birtcher Anderson Realty, LLC will exceed the maximum versus going below the minimum.

No. The company acts as a principal only.

If the selling agent is not willing to co-op its sales commission or a seller requires a net offer, Birtcher Anderson Realty, LLC will compensate its representative. However, it is imperative that this requirement is disclosed at the outset.

A letter of intent will be issued immediately, following a recommendation of the acquisitions staff, its senior acquisition officer and the company’s two principals, who make the final decision to proceed with an investment.

If a sales agent who is not a listing agent submits a property for consideration, it is important that he be able to demonstrate some level of authority to distribute the information. The company reserves the right to determine who will represent its interests in any transaction.

Properties are acquired with an exit strategy that will depend on the nature of the project. The original holding period assumption can change based on changing market conditions, but properties are acquired with both long term (10 years) and shorter term (2 to 5 years) strategies in mind.

Absolutely. Birtcher Anderson Realty, LLC has a long history of development and is very much interested in value enhancement opportunities, through the development process.

Only if the property represents an opportunity for Birtcher Anderson Realty, LLC to make a significant investment thereby creates an immediate presence in the market. It is inefficient for the company to expand to new markets unless a critical mass can be established.