As a result of our 15 years of experience with multi-tenant commercial real estate, we are managing our current portfolio of multi-tenant properties but no longer pursuing new acquisitions of this asset class. We are focusing our efforts towards triple net single-tenant assets. NNN (triple net i.e. no landlord responsibility) properties are typically less risky and are more consistent relative to occupancies, and rent rolls. This commercial real estate sub class provides reliable income and generally has longer term leases in place on the properties.
The challenge with NNN real estate is in determining what properties provide the best return versus relative risk and being able to put together the best possible acquisitions as these properties are in demand by other investors. To combat these challenges Ford has developed and employs the following strategies:
Property Selection
We have developed a specific set of acquisition criteria by which a property must be assessed before being considered for potential acquisition. By applying the same factors to each potential investment, we can select the property that we believe will provide the best performance over the long term.
Financial Modeling
We integrate detailed financial modeling into our property selection process to assist in predicting property performance after the acquisition. This offers a forecast of investor returns taking into account many variables that may directly affect income.
Financing
Financing is a key strength of our team. We have relationships with various lenders directly as well as brokers who work at the national level. These strategic partnerships help ensure that the debt financing placed on our properties are always booked the best rates and terms available in the market.
Operations
Our past experience and expertise in actively managed multi-tenant properties has allowed us to develop our current acquisition criteria to avoid the pitfalls associated with these types of properties. With our strong foundations in building assessment surrounding local market surveying and hands-on management, there is little that these assets can present us with that we have not dealt with before.
