DALLAS, May 6, 2005 (PRIMEZONE) -- Axiometrics Inc.: With competition to buy apartment properties at feverish levels and bid and due diligence periods shorter than ever, we can help expedite a buyer's analysis of these opportunities. For a client evaluating a portfolio of apartment properties in Atlanta, we were able to point how the seller had lowered rental rates drastically six-months prior to the offering to lift the portfolio's occupancy closer to 95% at the offering date. Once the portfolio was at 95% occupancy, the seller raised rental rates dramatically and sent the offering memorandum out. The offering required bids in two weeks, a large non-refundable deposit to be immediately posted by the winning bidder and closing in thirty days. With this tight schedule, there was not enough time to see if the properties in the portfolio could sign new leases at the much higher rental rates. Prior to even submitting a bid, we were able to inform our client of the seller's actions and our client passed on submitting a bid. This saved our client thousands of dollars in due diligence costs.
If you are evaluating the purchase of an apartment property or portfolio, Axiometrics can help you determine the following:
-- Are the current rental rates above or below market?
-- How have rental rates, occupancy, and concessions changed
over time?
-- How has the property performed against its comps, the submarket,
and market over time?
-- What kind of concessions are being used? How have the
concessions changed prior to the sale? Is the property using
concessions that have not been disclosed in the offering
memorandum?
-- What were the property's administration fees and deposits prior
to the sale? Did the deposit requirements go down prior to
putting the property on the market and up once the property
is on the market?
-- How have lease terms changed? Prior to the sale, has the property
been locking in low rental rates for longer periods, making it
more difficult for a buyer to move rents?
-- How does the property's leasing staff rate, excellent or
unacceptable? How do they compare to their competitors?