We have a really strict underwriting process at Smartland. It’s a uniform process, and any property that we’re looking to acquire has to hit all the same checkboxes.
Midwest mindset – we tend to be a little bit more conservative. We’re looking for that vintage, long in the tooth product that has been mismanaged over the years and requires a very, very large modernization. And so, not only are we playing on some of the deficiencies that the properties exhibit throughout our underwriting but also obviously we’re looking for very similar things that maybe other operators or other folks in the industry look for: replacement value and obviously value on where we can take the rents.
So, we’re looking to deliver high-quality results, not only to the community but also to our investors, and that requires being very disciplined in our underwriting processes. So, we want to make sure not only are we looking forward and thinking about how we can mitigate risk today, but also thinking about our downturn analysis in case the market shifts on us throughout the lifecycle or our ownership of the property with our investor partners.
So, we’re looking at multiple facets throughout the underwriting process to assure a similar delivery of a high-quality, highly amenitized, modernized facility at the exit.