About us
Real estate investments have three…
Most real estate investments have three phases or terms: Acquisition, Ownership and Disposition.
Svikhart & Associates assists Owners in each phase through the firm’s well-balanced blend of 40 years of experience in commercial real estate thereby assisting Owners at each phase with the objective of improving both property performance and value
Acquisition Term
Svikhart & Associates has extensive experience relative to the acquisition of multifamily real estate. Dave Svikhart has underwritten over 1,500 multifamily properties over the course of his career and has acquired, as a principal, apartment properties represented by over 10,000 units, for which he either directed or participated in all levels of valuation, due diligence, underwriting, finance, title, and closing.
The analytics implemented during the acquisition phase include but are not limited to:
- Valuation Analysis
- Rent and Sales Comparable Summaries
- Summary and Associated Cost of Curing Deferred Maintenance
- Return on Investment of Capital Expenditures
- Budget Preparation, Cash Flow Analysis, and Sale Analysis (at end of Ownership Term)
Ownership Term
The primary focus of Svikhart & Associates for Owners and investors is the Ownership Term. This is the most critical time during the life of the investment, if only because it is the longest period of time during which the Owner can identify, evaluate, analyze and implement processes and procedures that will directly affect net operating income and property value.
During the Ownership Term, successful multifamily ownership depends on a variety of factors including on-going investment analysis, disciplined budgeting/operations review, comprehensive market knowledge, property tax/insurance analytics, energy management, capital expenditure analysis, along with maintaining strong landlord/tenant relationships.
Collectively, this function is defined as the process of overseeing property performance with the goal of improving property operations, increasing cash flow and enhancing property value, commonly known as asset management. Svikhart & Associates has decades of experience in addressing and correcting operational issues resulting in improved asset performance and value.
Many apartment property Owners in the Midrange Tier of assets sometimes overlook the critical analytics regarding their investment. For many, the purchase is the single largest investment most make in their lifetime and often comes after years of dedication in their day job coupled with disciplined savings to build the equity necessary to consummate the transaction.
Doesn’t it make sense that Owners should completely understand how their equity investment is performing and, more importantly, be aware of whether it is providing the level of return that was anticipated when the investment was made?
Svikhart & Associates can assist in analyzing and defining a variety of metrics that can be used to determine an investment’s effective return. Some of these analytics include:
- Optimal Holding Period Analysis
- Return on Equity Analysis
- Proforma vs. Budget vs. Actual Analysis
- Rent Comparable Summary (ongoing)
- Periodic Capitalization Rate and Value Analysis
Disposition Term
The second most important decision an Owner makes, after deciding to buy the property, is deciding when to sell. Any number of factors can influence this decision and may include:
- Is the market at or near the top in this cycle?
- Are rents leveling off thereby slowing revenue growth?
- Has inflation impacted expenses resulting in an unforeseen offset to revenue?
- What levels of deferred maintenance and/or capital improvements are needed at the property that create an impactful return on investment?
- Can the Owner’s equity be put to a better use offering a more lucrative return by leveraging into a newer, less management intensive property?
- Can a disposition and reinvestment better facilitate the Owner’s long term capital plan?
- Does the Owner have a personal need to pull the cash out of the investment (i.e. unforeseen medical expense, children’s college education, improvements to the Owner’s personal residence)?
- Is the Owner tired of managing the property?
- If the property is perceived as a ‘legacy asset’ are the Owner’s children or relatives truly desirous of inheriting the property?
When the Owner’s investment objectives have been achieved, Svikhart & Associates can assist the Owner with valuation, listing, sale and disposition of the asset with the goal of realizing the highest possible price coming from the most qualified buyer.
As a part of the Disposition Term, the firm will work with the owner on all aspects of the disposition, including but not limited to:
- Prepare a Valuation Analysis and Marketing Strategy
- Create Comprehensive Marketing Package, including Property Website
- Develop and Implement a Digital and Direct Mail Marketing Campaign
- Due Diligence Preparation
- Orchestrate Property Inspections
- Manage and Direct Closing Process
Fiduciary Responsibility
With each term and regardless of the circumstances under which Svikhart & Associates is engaged, nothing comes ahead of the fiduciary role and responsibility of Svikhart & Associates…not profit, not self-preservation or self-interests. We will always do what’s in our client’s best interest.