WHAT DOES AN ACQUISITION ANALYST DO?

Published: Nov 6, 2024 – The Acquisition Analyst prepares comprehensive investment and disposition proposals, reports, and presentations for committee meetings while conducting detailed financial analyses such as NOI, IRR, and REIT yield. This role coordinates site visits, manages due diligence requests, and maintains thorough documentation and databases for acquisition and disposition projects. The analyst also compiles and organizes transaction materials, acts as a central information source, and facilitates team meetings for due diligence and pre-closing processes.

A Review of Professional Skills and Functions for Acquisition Analyst

1. Acquisition Analyst Role Purpose

  • Data Analysis: Evaluate economic, demographic, and market data to identify growth markets in the multifamily real estate sector.
  • Investment Origination: Originate/source off-market investment opportunities (with an emphasis on value-add).
  • Pipeline Development: Develop investment pipeline through the utilization of databases and correspondence with brokers and property owners.
  • Screening Process: Perform initial screening process on target investments (review, analyze, summarize).
  • Team Collaboration: Collaborate with the investment team on potential leads that fit acquisition criteria.
  • Analytical Support: Drive analytical and project support for all investment activities.
  • Database Management: Administer and manage various databases and information platforms.
  • Financial Modeling: Construct financial models, underwriting analyses, comparable analyses, and other discrete financial analyses as well as asset due diligence and industry research.
  • Partnership Management: Work with external partners and due diligence advisors.
  • Market Research: Conduct exploratory macro market research and perform analytics on potential investment opportunities and themes.

2. Acquisition Analyst General Responsibilities

  • Market Coverage: Cover multiple key target growth markets for X Co’s multifamily pipeline.
  • Site Identification: Survey and identify infill development sites within each market and submarket.
  • Financial Analysis: Underwrite new deals and perform financial analyses.
  • Massing Studies: Perform massing studies for projects, based on zoning and site parameters.
  • Zoning Knowledge: Develop a comprehensive understanding and knowledge of market- and site-specific zoning regulations and entitlement processes.
  • Direct Communication: Communicate with site owners and potential partners directly regarding acquisition opportunities, including negotiation of sale or partnership terms.
  • Material Preparation: Prepare memoranda and materials for leadership’s review of pipeline opportunities.
  • Market Research: Perform market research and analysis of potential real estate acquisitions.
  • Investment Documentation: Assist in the drafting and preparation of detailed investment memoranda.
  • Lead Follow-Up: Follow up on all leads and requests for information.
  • Property Assessment: Assess comparables, property value, and condition through research, outreach, data, site walks, and market trends.
  • Reporting: Produce reports based on analysis of acquisition for management approval.

3. Acquisition Analyst Key Accountabilities

  • Investment Evaluation: Evaluate and underwrite new multifamily investments, including financial analysis and modeling.
  • Broker Engagement: Engage with brokers and sellers on underwriting questions, deal requests, and market information.
  • Material Drafting: Draft investor support materials – investor briefs for prospective investors and support investor Q and A.
  • Deal Sourcing: Assist in deal sourcing – maintaining existing OPI broker/seller relationships and developing new broker/seller relationships.
  • Offer Generation: Assist with generating offers/LOIs for target properties.
  • Pipeline Management: Manage the prospective deal pipeline and OPI contact database via a CRM system.
  • Market Research: Take responsibility for conducting market research.
  • Deal Analysis: Find, filter, and analyze commercial real estate deals.
  • Modeling: Create and maintain models in Argus and/or Excel.
  • LOI Preparation: Prepare a Letter of Intent (LOI) as directed by the Director of Acquisitions.
  • Deal Sheet Maintenance: Maintain and ensure the accuracy of the “Deal Sheet”.
  • Consultant Coordination: Obtain quotes and arrange site visits for third-party consultant reviews.

4. Acquisition Analyst Roles and Details

  • Proposal Preparation: Prepare Investment Proposals and Disposition Proposals for Investment Committee meetings.
  • Report Creation: Prepare acquisitions and dispositions reports and PowerPoint presentations.
  • Financial Analysis: Prepare NOI analysis, IRR analysis, and REIT yield analysis for potential acquisitions and dispositions.
  • Information Review: Obtain and review Information Memorandums from Brokers or Vendors.
  • Site Coordination: Coordinate site visits and due diligence material requests on acquisitions with Managing Directors and various departments to obtain operational capex requirements.
  • Data Management: Download and upload data room documentation for acquisitions/dispositions.
  • Folder Maintenance: Maintain “Projects” folders on a shared drive, including a database of all opportunities received and the follow-up/progress.
  • Documentation Management: Maintain acquisition files and documentation, system access, and documentation requirements for ongoing or new acquisition transaction projects.
  • Meeting Coordination: Schedule and take minutes for due diligence team meetings as well as for pre-closing meetings.
  • Material Coordination: Research, compile, process, and coordinate materials as required by the transaction.
  • Information Management: Act as a central information source by maintaining and distributing acquisition details and due diligence materials.
  • Model Development: Prepare financial models and sensitivity analysis for potential acquisitions and dispositions.

5. Land Acquisition Analyst Additional Details

  • Property Identification: Work directly with the land acquisition manager to identify properties, contact landowners, and execute site control agreements.
  • Negotiation Support: Support the land acquisition manager during land and utility analysis, and contract negotiations.
  • Project Assessment: Assess project viability of property lease proposals and propose ways to increase the project's probability of lease execution.
  • Cross-Departmental Collaboration: Interface closely with Sales, Finance, Development, Engineering, Legal, and Management to help guide projects forward quickly and efficiently.
  • Lease Outreach: Contact public entities, private landowners, and businesses for potential solar leases across the country.
  • Regulatory Tracking: Track and evaluate emerging regulatory rulings and assess the potential for market creation.
  • Financial Reporting: Design and prepare financial reports, including sales forecasts and project portfolio status reports.
  • Market Research: Prepare market entry research, slides, and strategy in collaboration with the Community Solar team.
  • Lead Management: Develop and manage incoming leads and leases under control portions of the community solar sales pipeline while assisting with opportunity qualification and desktop due diligence.
  • Staff Development: Increase the effectiveness of staff and tools by recognizing opportunities for development and creating new systems and structures.
  • Documentation Coordination: Assist in the collection, coordination, and preparation of communication and documentation for real estate contracts.
Relevant Information
What Does An Acquisition Manager Do?