MEPT typically owns an asset for 7 - 10 years, but will sell an asset if a favorable opportunity occurs. The process of determining whether a property should be brought to market starts with assessing the risk profile of the asset and then estimating the achievable sales price. The disposition analysis is continuous and reported quarterly.
A formal hold/sell analysis is conducted each January after the annual budget has been formalized, but it may also be initiated because of an asset review for a quarterly report or a weekly portfolio meeting.
Reasons for disposition may include changes in:
- Demographic and economic forecasts
- Real estate market conditions
- New competitive products
- Property lease rollover projections, or
- Market conditions for the sale of property.