Our Acquisition and Disposition Strategy and Process
Penwood creates and implements strategies for investors by following a disciplined process that focuses on adding value throughout the process: acquisition, ownership and final disposition of an asset.
Following a transaction, we undertake a stringent, in-depth underwriting analysis of the property, its competition and market position. To identify and quantify specific underwriting issues, we use consultants with specific skills in areas such as engineering (structural, roof and HVAC) and environmental.
After acquisition, we manage each property to maximize its operating performance and ultimately its value and yield over the life of the investment. To get there, we develop a proactive business plan that details property-level operations and capital investment based on portfolio objectives and market conditions. We implement these plans by working closely with our local/operating partners to aid in day-to-day leasing and property management services.
Penwood’s ultimate goal is to sell an asset after the value-creation process is complete, in a favorable capital market environment. We review assets for possible disposition quarterly, through a comprehensive hold/sell analysis process.
High-level investor service—rooted in informed and responsive communication—is a hallmark of our firm. Our principals meet personally with investors to review fund performance, provide insight into investment decisions and interpret market trends. We provide investors with detailed quarterly and annual reports detailing the performance and status of each fund, client-level financial information and special updates summarizing property acquisitions and portfolio information.