We developed the HansonEP Score in order to help our investors easily compare important aspects of each of our deals. When analyzing each asset we take into account all of the qualities below and weigh them together in order determine whether or not we want to pursue an opportunity.
The HansonEP Score allows investors to visually analyze each aspect of an asset quickly, while also giving them a quick overview of our opinion on the opportunity. If you would like to receive more information on the specifics of why we ranked each quality of an asset the way we did, Contact Us Now to learn more
Demonstrates qualities of the target market including population growth, job growth, demographics, employers, etc. Also the specific location of the property within the sub market including traffic count, vicinity to anchor tenants, amenities etc.
1 = Poor location
10 = Excellent location
The age of the asset and whether or not the age has brought on deferred maintenance, or the asset is becoming obsolete.
1 = Obsolete
10 = New construction
What are the timeframes and complexity of the construction, as well as the cost of the construction. Deals that do not involve a construction component will be rated with an N/A.
1 = High cost and high complexity
10 = Limited cost and limited to no complexity
Ease of developing the end product including local municipality cooperation, zoning/entitlement process, tenanting, etc. Deals that do not involve development will be rated with an N/A.
1 = Extremely difficult to develop
10 = Easy to develop
How difficult it will be to obtain financing and what are the terms of the financing. If it is not financeable at acquisition, at what point will we be able to obtain financing in the future. This also accounts for the amount of leverage obtainable compared to other asset classes (e.g. multifamily assets will have higher loan to value ratios than NNN assets).
1 = Not financeable
10 = Easy to finance with generous terms and high loan to value ratio
Additional Capital Requirement
Likelihood there will be additional capital required to keep the deal moving forward in the future beyond the initial investment. If the deal will require additional capital, how much, and how frequently will additional capital be required. Deals that will not require additional cash infusions will be rated with an N/A (not applicable).
1 = Regular, large additional capital requirements
10 = No expected additional capital requirements
Qualities of our prospective tenant(s) including creditworthiness, history, stability, perceived risk, and more. Also incorporates whether the tenant risk will be spread out between multiple tenants, or this will be a single tenant asset.
1 = Poor tenant(s)
10 = Excellent tenant(s)
Assessment of cash flow over the expected duration of the project.
1 = Limited/no cash flow
10 = Extremely high cash flow, and early onset
Potential future appreciation of the asset.
1 = Limited or minimal expected appreciation potential
10 = Extremely high expected appreciation potential
How difficult will it be to execute the value add component, and what rate of return will it provide. Deals that do not involve a value add component will be rated with an N/A.
1 = Difficult value add with low return
10 = Easy value add with high return
This is Hanson Equity Partners’ score of the deal based on our proprietary deal rating system. This rating is based on our analysis of the overall quality of the deal.
1 = Worst deal
100 = Best deal