advisory
Acquisition/Disposition Advisory
Our combined expertise, reputation, and successful investment track record offers key advantages for pursuing and supporting our acquisitions:
· Extensive industry relationships that often present us with opportunities for sourcing, pursuing, and consummating investments prior to their release to the general marketplace;
· Proven knowledge of the complexities of negotiation, opportunity, and risk assessment, as well as legal and tax issues;
· In-depth understanding of the financial, service, and operating requirements of complex real estate;
· Ongoing analysis of micro and macro market dynamics, driving a proactive approach to asset management and real estate maximization;
· Focused development and implementation of strategic business plans, maximizing income streams and real estate potential for each of our acquisitions.
Asset Management
Crayton Advisors has a well-earned reputation for quality and performance. The Partners of Crayton have collectively advised, acquired, renovated and developed premier office, retail and multifamily projects in major markets throughout the United States having a value exceeding $3 billion dollars.
As an integrated real estate operator and advisor, Crayton’s asset managers are fully involved in the acquisition due diligence process, development and implementation of unique value enhancement strategies, cash flow management and disposition. Property manager’s report directly to the asset managers, instead of a director of property management, as is customary, which results in the property load of the asset managers to be well below what is normally seen in the industry. The goal is to ensure that each property level decision improves the overall value of the asset within the context of the overall investment strategy. All management operations are executed through the company’s management division, Crayton Management.
Risk Management
Crayton Advisors manage risk to a level that can significantly reduce investment, operational and management risk through a series of checks and balances. Within Asset Management there are a several points of focus:
· Cost basis relative to competing properties, as well as new construction costs,
· Asset specific financing optimization,
· Renovation costs containment,
· Tenant risk – Proactive management of credit and rollover,
· Lease-up risk – Deep understanding of time frame and market dynamics
· Rental rates
· Exit pricing
Risk associated with an investment is mitigated through the discipline of purchasing the assets at the right basis, combined with placing an appropriate level of debt on the property and with appropriate interest rate hedging. This strategy includes effective execution of financing, and Crayton Advisors has developed strong relationships with many qualified lenders. Changes in the debt markets can create challenges if the price or availability of debt becomes restrictive. Therefore, Crayton continually monitors these costs and availability of proceeds by utilizing research and the services of commercial mortgage brokers.
An important component of this strategy is the transformation of assets into prime institutional-quality properties. Crayton Advisors’ asset management skills and budgeting only capital accretive to the investment, have allowed the company to achieve this goal. The historical track record of the company and its Principals speaks to the success of this strategy.
