Afternoon everyone,
I'm looking for advice on how to tackle a case study for an Acquisitions Analyst position interview.
I was told ahead of my interview to describe and outline the steps/process that you would go through to value an industrial asset. I don't have much experience in the industrial asset class, so i was wondering if any of you guys can run through the important steps to take for the acquisition process.
I have the investment brochure of the specific property, if you guys are curious i can PM you.
Thank you. Cheers.
Elion?
Single tenant or multi tenant strategy? What are the lease structures? (Probably NNN) Credit tenant(s)? What financing is being offered/used? How old is the building and what does the PCR, if available, say needs to be repaired within the investment life cycle? If it's an older building, make sure to pay close attention to the environmental report, if available(asbestos, USTs, flood zone, contaminated soils). Some important facts about industrial buildings are clear height, dock door count, fire suppression system(s), and age of the roof. Also, make sure the roof warranty is transferable. If it's in a real town, see how close it is to an interstate highway/airport/train line. How close is it to other warehouses of similar size? Look at the comps in the OM and compare them to what's being offered. Look at replacement cost, if the data is available. Most industrial buildings are tilt-ups, so take note of what the construction type is - this will be useful in repositioning tenants within the building and/or leasing the space. Check the tax status, sometimes in non-gateway cities, I've found large commercial tax credits are being used/or are available for industrial properties.
I don't think this 100% addresses the question you asked, but hopefully, you will find some of what I said useful. Best of luck.
Edit: I know I commingled warehouse and industrial!
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