Sample Acquisition Timeline:
1. Pre-Acquisition (5-15 business days)
- Gather property data and historical data (seller provides the majority of the information);
- Conduct a supply & demand study;
- Collect competitor rent comparable(s);
- Underwrite the property;
- Submit a letter of intent (LOI); and
- Negotiate the basic terms within the LOI.
2. Under LOI (Variable, 14-40 days)
- LOI executed by the buyer and the seller;
- Buyer provides the purchase and sale agreement to the seller and their representatives (i.e. attorney, broker, etc.); and
- Buyer and seller negotiate terms and language in purchase & sale agreement.
3. Under Contract (60-120 days)
- Purchase & sale agreement executed by the buyer and seller (clock starts on effective date);
- Due diligence period starts and agreed upon deposit sent to escrow;
- Acquisition team reviews due diligence materials provided by the seller;
- Third party reports ordered by the buyer (Environmental report (Phase I), survey, title search, etc.). Coordination with seller for these studies to be conducted;
- Due diligence period ends;
- Closing period begins; and
- Buyer assembles operational and funding plan prior to the closing.
4. Closing (1 day)
- Title is transferred from the seller to the buyer;
- All of the funds are disbursed to the parties; and
- Buyer receives the property and the seller receives the funds.
Average Acquisition Timeline Total: 3-5 months.