Established National Market Research Firm - Rocky Mountains Region

Arapahoe County, CO

Seller Financing Available

Affordable Housing Development
Asking Price:$650,000
Gross Revenue:$1,152,962
FF&E:$20,000
Cash Flow:$253,000
Rent:$1,500/Month
Established Year:2001
BUSINESS DESCRIPTION

The company is a well-known national market study provider serving those stakeholders associated with the development of Affordable Housing projects across the United States. This historically critical segment of the real estate market has grown significantly in recent years and is expected to continue well into the future as affordable housing has come to the forefront as a critical issue with strong bipartisan support. Prior to embarking on any real estate development (market, location, planning, budgeting, government funding, etc.) an independent full market study must be conducted to serve the requirements of all stakeholders associated with the proposed project. This includes municipalities, infrastructure, property developers, and the lenders which participate in these government-subsidized programs. Few topics of national importance have received as much attention, focus, economic importance, and government funding than Affordable Housing.

The ideal buyer will have a background in real estate development, lending, or market research but most importantly the ability to manage the well-documented process which has been key to the company's success. It is far less important the individual posses writing, basic data analysis, project management and communication skills as these would be helpful but not required as the staff provides all aspects of producing the final product. More important is the ability to lead and manage, client communication, and general business management. Much of the information used to complete research reports is available online and through public and proprietary databases. Other datasets are available for purchase or via subscription. Primary data collection techniques are also used to obtain apartment data via telephone or in-person interviews. Technological advances in software, artificial intelligence (AI) and analytical capabilities in various software systems, such as Excel, will enable a buyer to step in and begin working with the existing system in place, improve up on it or develop or new one. The company has a very tenured staff in place which works autonomously with limited supervision given their many years of experience.

The ideal buyer will either be a company already in the Market Study industry which will add extremely well-qualified staff, clients, and industry recognition to compliment it's product and service offerings or an individual with general management skills and experience working with 'White-Collar' businesses which may include: Banking, Real Estate, Finance, and Real Estate Development.

A background in market research and market study creation would be beneficial but not required as each team member works autonomously with little oversight except for report review and final approval.

As the Confidential Business Review will detail, the company has been located in the greater Rocky Mountain region since inception over 3 decades ago but the Pandemic provided that a remote working environment was well-suited to business operations. The remote staffing model is more cost effective, allows both salaried and independent contractors the flexibility they desire, and the ability to deploy staff resources to projects across the U.S. quickly and effectively. In addition, by removing the need to hire locally, the company can attract and retain highly qualified staff from anywhere in the U.S. and even those who may prefer to work remotely across the globe. The recent and ongoing increases in technology and communications, with the majority of service solutions being cloud-accessible by the company and it's clientele will provide significant near and long term opportunities for a growth-minded buyer who understands the demand for research and market studies for both it's traditional client base as well as adjacent industries where third-party independent research is required by each stakeholder as well as for compliance.


DETAILED INFORMATION
Location
Relocatable
Inventory
Not Included in asking price
Real Estate
Leased
Building SF
900
Lease Expiration
31/12/2028
Employees
9
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
In the years leading up to the Pandemic the company maintained a large office, the lease for which will terminate in May 2025 and will be paid off in full by the present owners. A new owner may not require an office as the team works remotely and is located across the U.S. We have allocated $1,500 per month for an office should the new owner desire a physical location for local team meetings. The company has very few assets given it's business model, limited to PCs, as Data Storage is managed by an off-site provider. CapEx limited to replacement PCs.
Competition
There are a number of Market Study and Real Estate Development Research firms but few if any whose entire focus is in the Affordable Housing segment of this large industry. Focus has been a hallmark of the business since its inception. Not only does this help create a competitive moat but given the tenured staff, significant client contacts, and reputation, it would seem to be a strong springboard for the addition of other research and study services as a growth-minded owner may pursue.
Growth & Expansion
The demand for Affordable Housing and the many stakeholders involved in the development of this segment of real estate development is significant and national. As the company moved from a somewhat historically regional focus within the Rocky Mountains area, with staff now located across the U.S. their market opportunity is now national in scope. It is no surprise that the societal demand for affordable housing has become more critical than ever and the exceptionally strong bi-partisan government support means more financial support and opportunity.
Financing
Seller Financing may be available to a well-qualified buyer as required by an SBA len
Support & Training
The owners (2) are fully committed to an extended training and transition period for a seamless transition. Each owner is willing to provide additional training as desired by the buyer as well as an ongoing consulting arrangement to provide additional report creation as mutually agreed on a paid basis. This is a fairly simple business to manage successfully post-sale.
Reason for Selling
Retirement
Home-Based
This business is Home-Based
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Gregg
Kunz
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Gregg Kunz