Frequently Asked Questions Concerning Our Acquisitions Process
• Are development or re-development opportunities of interest?
Acquiring properties with a development or re-development value enhancement component is a high priority for Birtcher Anderson Realty.
• Will Birtcher Anderson Realty, LLC make unsolicited offers?
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.
• Are there specific location requirements or preferences?
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.
• Will Birtcher Anderson Realty, LLC consider core properties?
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.
• What type of industrial property is of interest?
Most classifications of industrial property are of interest, including warehouse/distribution, multi-tenant light manufacturing, incubator and tech-flex in the appropriate markets.
• Are single tenant net leased industrial properties of interest?
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.
• What are the preferences for office properties?
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.
• What are the preferences regarding multi-family properties?
The highest priority is for well located class “B” and “C” projects of at least 200 units.
• What are some specific guidelines for retail centers?
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.
• Will ground leases be considered?
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.
• Will Birtcher Anderson Realty, LLC consider acquiring a partial interest?
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.
• How firm are the deal size limitations?
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.
• Does Birtcher Anderson Realty, LLC participate as a broker?
No. The company acts as a principal only.
• Will the company pay an acquisition commission?
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.
• What is the company’s approval process?
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.
• Will Birtcher Anderson Realty, LLC allow an agent to "register" it as a potential buyer for a property?
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.
• Does Birtcher Anderson Realty, LLC hold properties for a specific term and is it ever a seller?
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.
• Are properties with excess land of interest?
Absolutely. Birtcher Anderson Realty, LLC has a long history of development and is very much interested in value enhancement opportunities, through the development process.
• Will acquisition opportunities outside of the target markets be considered?
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.