Investment Process
G2 Capital provides real estate investment and asset management services to investors and co-invests as a principal in all of the deals it structures. With our unparalleled local market knowledge and contacts, G2 Capital is well positioned to originate opportunity. G2 Capital strives for excellence in each stage of the investment process, as follows:
Sourcing Investments
G2 Capital maintains close contact with many local and national real estate professionals involved in sales, leasing, management, and other real estate service lines. G2 Capital also works with other investment groups to source off-market transactions and to identify and pursue acquisition opportunities.
Due Diligence
Due to rigorous screening and high standards of risk-adjusted returns, very few assets are ultimately pursued. Once a potential investment has been identified, G2 Capital thoroughly evaluates the financial and physical aspects of the asset. A detailed due diligence process is implemented to gain a comprehensive understanding of an asset’s physical attributes and to verify financial information. This process often includes retaining the services of professionals who specialize in analyzing the physical aspects of a property including architects, engineers, and environmental experts. Financial due diligence and underwriting is tightened with an in depth analysis of each lease and other financial material aspects as well as the preparation of revenue and expense projections with the input of leasing and property management specialties.
Property Acquisition
After completing the comprehensive due diligence process and an asset specific business plan has been formulated, G2 Capital negotiates the purchase contract with the asset’s existing owner and closes the transaction. During this process, G2 Capital arranges new or additional financing with optimal terms to complete an investment’s targeted capital structure. Attorneys and tax consultants are retained to assist in the formulation of the purchase and sale agreement and in establishing the most tax-efficient holding structure. G2 Capital places money alongside investors on each asset acquired to maintain an alignment of interest.
Business Plan Implementation
During the sourcing and due diligence stages of the investment process, G2 Capital develops an asset specific value enhancement strategy. This value enhancement strategy could include re-leasing vacant space, upgrading a property’s physical condition, or generally maintaining a property’s economic viability. Immediately after closing, and possibly while the property is under contract, these strategies are implemented. G2 Capital continually evaluates progress relative to its initial investment strategy and frequently runs sensitivity analyses to determine the best time to sell to maximize risk-adjusted returns.
Asset Management
During ownership, market conditions will change and unexpected challenges will arise. This fact stresses the importance of competent asset management and a flat organizational structure. A flat organizational structure ensures close contact and relationship building with tenants which lead to better investment performance. G2 Capital works closely with property managers to develop an optimal maintenance and capital expenditure program as well as to maintain excellent relationships with tenants. Leasing professionals are used to develop and execute a marketing plan that resonates with potential tenants to achieve market leading leasing activity. Each property’s strengths, weaknesses, opportunities, and threats are constantly evaluated and changes to the strategy are made when necessary.
Property Disposition
Before G2 Capital makes an offer on a property, an exit strategy is developed. During asset management, G2 Capital frequently runs sensitivity analyses to determine the best time to sell to maximize value and returns. An asset’s future operating performance and its continuing prospects for appreciation are taken into consideration in the financial model when making this determination. When the decision has been made to sell an asset, G2 Capital actively manages the disposition process which includes setting the appropriate sales price, qualifying prospective purchasers, and negotiating the relevant terms and conditions of sale.
