Explanation of Services

As asset managers, Entrada’s responsibility is to act as the owner’s representative in order to maximize the property’s financial performance. Historically, Entrada’s principals have been able to achieve an NOI improvement of 19.9% within the first 12 months after taking over the management of an apartment community. 81% of this NOI improvement has come from the decrease in variable expenses. The scope of work as Asset Managers would include the following services:

• Property operations & Income Statement analysis
• Provide weekly and monthly analysis and reporting discussed above in the Property Management section
• Extensive site visits and key recommendations
• Reviewing all vendor contracts and determining if they need to be renegotiated
• Market Research:
• Monitor competitive set of apartment communities to determine rental rates, concessions, occupancy, renovation upgrades and marketing strategies. Update the data set on a weekly and monthly basis.
• Track new development pipeline to determine threat of new supply and impact on rental rates and occupancy.
• Track Sales Comparables to determine cap rates and price per unit for the Submarket. Use this information for the valuation/recapitalization/exit analysis.
• Renovation program:
• Compare the scope of work to competing properties to determine if over or under improving the units.
• Determine if rental increases justify the renovation investment.
• Possibly reduce the scope of work to be in line with small rental increases (or perhaps even decreases).
• Analyze the renovation program on a line item basis to determine if work can be done cheaper.
• Review insurance policies and coverages, and recommend solutions to preserve protection
• Function as the owner's representative in dealing with designers, contractors, including review of renovation activities in the field
• Use local market knowledge and broker network to determine value and possible exit strategies
• Obtain financing quotes from Fannie Mae, Freddie Mac and other multifamily lenders to determine potential recapitalization structures
• Property tax appeals