COSTELLO COMMERCIAL REAL ESTATE

INDUSTRIAL/COMMERCIAL PROPERTY MANAGEMENT

GOAL: The goal in property management is for us to position your property for the highest returns both in terms of cash flow and value (optimizing re-sale pricing) while charging very competitive fee rates. We have over 24 years experience in leasing, property management, and investment sales that we apply to our property management to optimize your returns and values. Our fees for property management, sales, leasing and construction management are very competitive. Our ability to optimizie your returns and values while charging very competitiive fee rates is why we say we are  “YOUR HIGH VALUE LOW COST ALTERNATIVE” while we are “POSITIONING PROPERTY FOR HIGHER RETURNS”.

SERVICES  (only the following management services specifically described):

Rent collection - delinquency status report (three day notices for defaults)
Expense payment (write checks and pay bills with your co-signature only)
Income/Expense Statement
Accounts Receivable/Payable
Separate FDIC insured checking account - check register provided
Annual Budget
Certificates of Insurance
Lease Summaries (schedules lease terms, security deposits, rent increases, expenses, etc.)
Lease renewals (per “Exclusive Agreement - Right to Lease” attached)
Information collection & filing (ie: floor plans, policies, contracts, etc.)
Damage reports including estimates for repair
Maintenance (competitive vendor bids - landscaping, roof, parking lot, janitorial, etc.)
Contract Administration (We maintain long term relationships with experienced Vendors)
Oversee basic improvements - carpet, paint (excluding new improvements) No Charge
Approve space condition and coordinate cleaning upon vacancy (security deposit refund)
Prepare Common Area Maintenance Charges Reconciliation
Expense review (ie: insurance bids, tax appeals, energy audit, lender terms)
Any expense exceeding $500.00 shall be approved by owner (except recurring expenses).
After hours contact emergency number
Option to sub-contract accounting services with Access Association Services, Inc. CLICK:
www.AssociationServices.com

TENANTS: It is important that Tenants are viewed and treated as our customers to maintain the highest possible occupancy. The property needs to maintain a positive reputation so future tenants lease at the property and current tenants renew. We will work with the tenants in a professional manner and stay within the limits of their lease and your policies.

MARKETING: Typical marketing efforts for lease and/or sale, if appropriate,  will be employed including “Multiples”, web sites (loopnet national listing, co-star, electronic listing service, etc), mailings, group emails and group faxes to hundreds of commercial brokers and clients, cold calling, signs, ads, etc. A complete marketing plan  is on our web site at www.garlic.com/tjc. Market “comps” are provided for pricing purposes.

PROPERTY MANAGEMENT FEE:

There will be a  minimum fee for specific buildings depending on type, size, number of tenants etc.
Generally the fees are as follows:

Multi - Tenant (exceeding two tenants):                                      First $100,000.00 in monthly rent the fee equals 3% -  4% of monthly rent.
                                                                                                 Add 2% -3% fee on monthly rent exceeding $100,000.00.

Single - Tenant (one or two tenants):                                          First $100,000.00 in monthly rent the fee equals 2% -3% of the monthly rent.
                                                                                                 Add 1% - 2% fee on monthly rent exceeding  $100,000.00.

Broker shall procure all new and renewal (extension / options) leases at the subject property and Owner shall pay Broker for such per our  “Exclusive Agreement - Right to Lease” listing agreement for sale/lease. However,  the fee due for negotiating lease renewals shall equal 50% of  the leasing fees due per our  “Schedule of Commissions & Fees” (which is a discounted fee from industry standard). And, said fees shall only be due if Owner sells or leases the subject property under terms solely acceptable to Owner.

NOTES:  Note that some leases provide that the fees for property management are paid for by the tenants as an operating expense. Also, nearly all investors assume at least a 3% - 5%  property management fee in calculating the capitalization rate for a property whether it is professionally managed or not to determine the property value. Keep in mind that for every one cent per square foot in rent procured or expense saved the property is worth at least about $1.00 per square foot more. We will professionally manage your property to minimize expenses and maximize income to achieve the highest NNN rent to enhance your cash flow and capitalized value (optimizing re-sale pricing). In this way we feel we add more value than we charge in fees.