Acquisition Criteria
Acquisition Criteria: Multi-tenant Office Properties
New River Valley and Roanoke Valley Markets
Size: Preferably 10,000 square feet or more (minimum size somewhat dependent on distance from currently owned properties).
Locations:
New River Valley sub-markets - Blacksburg, Christiansburg, Fairlawn, Dublin
Roanoke Valley sub-markets - SW Roanoke County, Salem
Construction: Campus-style or mid-rise; flat or pitched roofs; individual or master-metered HVAC systems.
Age: Open
Profile: We prefer under-performing properties, including low-occupancy, high-expense profiles. Special consideration given to properties with expansion potential.
For stabilized projects we prefer those with minimum suite size of about 1,200 sf, with a limited number of tenants. Higher valuation will be given to properties with triple-net leases as opposed to full-service.
Pricing: No minimum or maximum. Current parameters (Jan. 2009) indicate properties priced below an 8 1/2% cap rate are unlikely to be successful acquisitions. Acquisition pricing should be based on actual operating performance. No pro forma pricing.
Our valuations are based on current rent roll, less management fees at a minimum of 4.0%, previous year utility expenses plus 3.0%, taxes adjusted for the purchase price, insurance costs as quoted Purchaser’s by current carrier, appropriate replacement reserves, and Park's projected variable costs. Final offer price will be based on Park's current return requirements, overall market and property risk, and less any deferred maintenance. Valuation for properties with low occupancy or properties in need of major renovation based on replacement cost basis.
Due Diligence: Require actual operating numbers, no pro forma, 3-year history preferable. Current rent roll with all lease data; Current survey, current title policy and copies of any mortgage documents if loan is to be assumed.
Closing: Typically a sixty day due diligence period with a thirty day closing period.
Brokerage Fees: Any commissions due are the responsibility of the Seller.
Send us Your Property Information
If you have a property available that you’d like us to consider for acquisition we’d be happy to hear from you. Submissions directly from owners and brokers are welcome. We are not brokers and act solely as principals. We protect all broker/agent submissions on a first sight basis.
To submit bring your property to our attention we have several options:
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If you have a digital brochure or flyer available, please email it as an attachment (PDF files preferred) to acquisitions@parkrealty.com.
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You may complete our Property Information Form and email it to us at acquisitions@parkrealty.com.
You may also print the completed form and fax it to (540) 552-3457.
We will respond within two business days to indicate interest.
All submissions will be held in strictest confidence and circulated solely to our in-house staff. If you require a non-disclosure/non-circumvention agreement, please fill out the contact information and property description portion of our Property Information Form and email or fax it to us.
