Our process starts with a meeting with prospective clients to understand their philosophy of investment. We showcase our investments to match their needs and maximize returns.
Value Add Deal Sourcing
Using our proprietary technology, we identify and capitalize on inefficiencies in real estate markets to acquire high quality operating assets at discounts to replacement cost. Such inefficiencies can result from:
Taking advantage of sellers’ strategic or financial motivations
Investing in markets or properties that are perceived as out of favor by other investors
Leveraging our industry relationships with both private and public joint venture partners to access deals
Utilizing financial experience and resources to exploit pricing inefficiencies in complex transactions
Current local market condition coupled with valuations of underlying assets – risks and potential returns. Refined valuation analysis and final bid/proposal for internal approval.
Investment team negotiates final price and prepares a detailed investment plan for each investment. Sprout Capital closes transaction.
After an acquisition, Sprout Capital’s dual expertise in both real estate operations and capital market dynamics are important in the successful execution of the investment plan. Value-enhancement strategies to improve an investment’s potential for capital appreciation may include:
Targeted capital improvements
Aggressive leasing and operational plans to grow NOI
Focus on risk management and proactive asset management
Utilization of prudent leverage to enhance returns and optimize capital structures
Opportunistic sale of assets when market conditions are optimal