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Gus Lagos- Marketing Stategy

MARKETING STRATEGY AND PROCESS

Grubb & Ellis has assembled a Team that combines the expertise of the top marketing and research team in the company with the skill and knowledge of the local office. With our local market knowledge of real estate trends coupled with our access to regional, national and international users, developers, investors and capital sources, Grubb & Ellis provides our clients with the most comprehensive and aggressive marketing campaign.

OVERVIEW

The goal of the marketing strategy is to ensure that our client obtains the highest price possible for their properties. We will structure and implement a well-orchestrated disposition program focused on maximizing value within a prescribed timeframe. Our marketing program is founded on two principal fundamentals: First, we treat the asset as if we were principals in the project ourselves; second, we prepare and disseminate the most accurate and thorough information available.

The primary steps in implementing the marketing process are summarized as follows:

PREPARATION OF MARKETING TOOLS

With the information obtained from our thorough research, a comprehensive set of marketing materials will be assembled with sufficient detail for a buyer to make an informed acquisition decision for the Property. Grubb & Ellis recommends the following tools be developed for the marketing of the Asset:

With your consent, placement of distinctive brokerage signs at strategic locations on the property will be effected. The signs afford two major benefits. First, by the strength of our track record and the visibility of our company, the potential buyer knows their negotiations will be conducted fairly and professionally. Secondly, brokers know that their successful work on your project will result in a commission.

Once the marketing materials have been developed, the next step is to identify target markets. Simply put, the marketing & disposition team will focus their efforts on targeting a buyer. Target marketing, together with follow-up personal contact, has the greatest potential for identifying the highest number of prospective buyers. The team’s direct efforts in conjunction with solicited help from the brokerage community will accomplish just that.

PROMOTION OF THE PROPERTY

Once the target market groups and mailing lists are developed, the direct marketing can begin. Next, the objective is to be proactive. The team will work actively to introduce the property to anyone and everyone within the targeted group. This direct marketing will continue until date of sealed bid deadline and will employ various approaches, of which have been listed below:

1. Direct Mail Campaign and Follow Up Potential buyers will be placed on a mailing list and will receive information that will guide them to further inquiries. Included will be the marketing flyer and other collateral material designed to create a sense of urgency as the prospect reviews the information on the property. The mailing list will be carefully compiled with national and local investors.

2. Internal Promotion Grubb & Ellis will announce the availability of the property to over 1,600 various brokers and investment brokers in our 107 nationwide offices. Along with the initial announcement, we will provide data and specific site information to be placed into each office computer system for immediate access.

3. Cooperation with Broker Grubb & Ellis believes in cooperating with the brokerage community, and will keep the brokerage community informed on current activity. Direct contact with the top-producing brokers will be ongoing.

4. Internet Marketing Your property will be featured on the Grubb & Ellis Intranet (the Company network), the Grubb & Ellis web site, and several listing services including: Loop Net, Costar and CCIM.net. In addition, the listing will appear on www.guslagos.com

5. Advertising The project can be advertised through the following suggested publications at the owner’s direction:

DIGITAL FLYER AND INITIAL MARKETING LETTER

The Digital Flyer and Initial Marketing Letter, sent via email and/or hard copy following via US mail, announces the sale and availability of the property to selected and qualified buyers. Each qualified buyer will receive an initial phone call to discuss the opportunity. If possible, a presentation will be made to the client to formally introduce the opportunity. We have found that the marketing process requires a proactive approach.

The Digital Flyer and Initial Marketing Letter will contain general information, such as property size, location and photographs. The design is typically a multi-page color flyer.

WEBSITE

A web site will be created specifically for the property and will provide potential purchasers with instant access to detailed information, day or night. The web site is secure and requires authentication by a login and password. In addition to the information contained in the brochure, the web site will contain links to valuable resources and files that will assist the purchasers in making the most aggressive underwriting assumptions. These may include such due diligence items environmental reports, title policies, neighborhood covenants, deed restrictions, zoning and financial information. All authorized users are able to view, print and/or save the marketing collateral of their choice.

PERSONAL CONTACT

Prospect calling is the heart of the marketing program. It is of paramount importance that the time and effort be expended to make “personal” contact with local, regional, and national prospects. The asset will be exposed to the maximum number of potential buyers to minimize its time on the market, and the risk of over exposure.

NEGOTIATIONS / QUALIFICATIONS

Grubb & Ellis will conduct the qualifying and preliminary negotiations. Grubb & Ellis is capable of interpreting the needs of the prospect and transferring them to paper in the form of an offer. We will stay in close contact with you or your representative as the transaction progresses. We can advise you on negotiation points and the ultimate signing of the agreements. However, all the decisions relative to the consummation of any agreement are yours.

CLIENT REPORTING

Grubb & Ellis will document and report each step of the process via email and a web site created specifically for this project so that a smooth transition occurs from the initial offers to the final selection process. Grubb & Ellis will provide a report on demand that details all discussions, underwriting efforts, offers and related issues impacting the contemplated transaction.

DISTRIBUTION AND CONTROL OF INFORMATION

The direct marketing process will begin upon approval by the client of the marketing tools. Direct contact will be made with prospective buyers during the pre-marketing period. In addition, the investment listing will be distributed to several listing services mentioned on next page. All information will be distributed directly by Grubb & Ellis.

EXTERNAL & PUBLIC OUTREACH

MARKETING TIMETABLE

Phase I
Pre-Marketing
30 Days

• Coordinate with client on marketing process & establish marketing procedures.

• Gather due diligence information.
• Establish developer/owner/user/ investor list.
• Create initial marketing flyer.
• Facilitate collection, documentation & delivery of due diligence materials.
Phase II
Full Scale Marketing
30 Days
  • Distribute confidentiality/ registration agreements & initial marketing letter to initial developer/owner/user/investor list.
  • Complete offering memorandum.
  • Initiate full exposure to all parties (including cooperating brokers & developers, owners, users, and investors not already on initial list).
  • Upon receipt of executed confidentiality agreements, distribute offering memorandums and due diligence materials to all qualified parties.

  • Commence all passive marketing (advertising, direct mail).
  • Commence active marketing (cold calling performed by all team members).
  • Assist with potential buyer underwriting.
  • Communicate deadlines for first phase offers.
  • Collect all initial offers.
Phase III
Negotiations & Contracting
15 Days
  • Review all initial buyer qualifications.
  • Reduce list to qualified potential buyers.
  • Request best & final offers.
  • Choose best & final offers.
  • Negotiate with most qualified buyers.
  • Maintain back-up offers.
  • Distribute & negotiate purchase contract.
  • Mutual execution of purchase contract.

Phase IV
Final Due Diligence/Close of Sale
30 Days
  • Liaison with attorneys, escrow and title officers, due diligence consultants & principals.
  • Resolve title issues - facilitate acceptable policy.
  • Removal of unknown or overlooked contingencies.
  • Finalize pro-rations.
  • Review settlement statement with escrow officer.
  • Confirm transfer of funds.
  • Settlement

In conclusion, we plan to create a maximum of exposure for the property by marketing the property to our extensive database of both institutional and private investors. These investors can be accessed through our proven marketing techniques which include:

 

 

8/20/08: Gus Lagos features Logan Farms