Menlo Atherton Development’s investment begins long before yours. Successful results are the product of a well thought out plan, which is why we begin with a strategic process designed to maximize the value of the property and your investment.
1 Day – 2+ Years
Screen | Assess Opportunity | Drive By | Track Potential Acquisitions
2 – 4 Weeks
Market Research | Shop Rental Comps | Start Underwriting | Assess Value-Added Potential
3. DUE DILIGENCE & NEGOTIATION
2 – 6 Weeks
Physical Inspections | Site Visit | Lease & Financial Audits | Staff Interviews | Due Diligence Checklist | Shop for Debt | Deal Review | Budget Analysis
Before we negotiate the contract, we start our due diligence process. Our goal at this stage is to have a good handle on all material risks that could significantly impact the returns over our ownership timeframe. Once under contract, we dive deep, digging up all pertinent information. To get the best results, we conduct a thorough physical inspection of the property, walk each unit and audit all leases. We scrutinize historical financial statements and interview the in-place property staff. In all, we have a 200+ point checklist, which our dedicated team reviews again and again to ensure we have all our checks and balances in place. Based on our findings, we work closely with our lender partners to obtain term sheets to help structure the deal to maximize reward vs. risk. Our Deal Committee review is the final step where a go/no-go decision is made – this is where our collective years of experience helps ensure all significant risk are adequately addressed. If a “go” decision has been made and our negotiated terms have been agreed upon, we proceed to the next phase: Acquisition – less than 4% of the properties we see make it through this stage.
30 – 90 Days
Business Plan | Debt Terms Finalized | Legal Documents | Obtain Bids | Equity Investments Finalized | Develop Value Add Plan | Takeover Preparation
5. VALUE-ADDED REHAB & REPOSITION
1 – 2 Years
Takeover & Transition | Renovate & Reposition | Refine Property Management | Frequent Site Visits
This is where our strategies and skillsets are utilized to reposition and add value. Our team is focused on value creation through well-conceived spending plans which ensure we do not overspend nor overimprove. Careful planning ensures our investments generate cash flow throughout each stage of the investment lifecycle while also accruing capital gains.
6. ASSET MANAGEMENT
2 – 5 Years
Property Management | Review Performance Reports | Monthly Operations Reviews | Monthly FinancialUpdates | Site Visits | Quarterly Investor Statements
Our Property Management team focuses on continuously optimizing the performance of the property. Our goal is to maximize capital gains and cash flow through strategic repositioningh. We design property improvements through comprehensive strategies which enhance the resident experience.
3 – 5 Years
Prep Property | Select Broker | Market Property | Close Sale | Make Final Distribution
Our Disposition strategy is to sell when favorable market conditions align with our desired tax-advantaged holding period. We believe a successful real estate investment should provide cash flow throughout the life of the investment in addition to capital preservation and appreciation at the time of sale. We prefer to align ourselves with medium-term investors who are comfortable with holding time frames of three to five years and are interested in tax-advantaged capital gains and growing passive income. Our goal is to maximize investor returns by employing a favorable capitalization structure while focusing on optimal property performance.