Thirty Capital, a proptech company with a portfolio of technologies and services, announced that it is acquiring STATVAL, which stands for MFC Statistical Valuation Software Application. The new system “provides multifamily stakeholders insights into asset performance to support situational awareness and informed, swift, strategic decision-making,” according to a Thirty Capital press release.
STATVAL calls its system on its website an “automated and cost-effective method to perform property-level analytics.”
“Clients use output either on a stand-alone basis and/or feed output into Client Asset Management and Underwriting Models,” the acquired company continued. “STATVAL applies the Income Capitalization Method in a manner that utilizes verifiable data and statistically matches underwriting assumptions used to calculate DSCR and LTV on documented Loan Originations. Once the Subject Property has been entered into STATVAL, a Benchmark Underwriting may be executed in as little as 5-10 minutes. In addition to Property-Level Analytics, STATVAL provides Market-Level Research Dataset Downloads and Statistics. These tools provide a cost-effective complement to both in-house and external data and analytics.”
For the acquisition, Thirty Capital formed Thirty Capital Performance Group (TCPG) that it says “focuses on real estate advisory, asset management, and performance benchmarking. As demand for data analysts is increasing and talent is harder to find, TCPG provides a timely and efficient intelligence source.”
The services will include full and shadow asset management, monthly performance reporting, peer-to-peer benchmarking, statistical property valuation and cap rates analysis, data analyst and reporting services, and property management benchmarking.
“Understanding how a property is performing and where there’s opportunity to optimize is crucial to scaling a portfolio,” said Thirty Capital CEO Robert Finlay in the release. “The key to growth is performance data and deciding what it’s trying to tell us about our assets, the market, and what we need to do to protect and enhance returns.”
Thirty Capital said that it is trying to address “the challenges operators experience in validating assumptions regarding the cash flow and economics of multifamily assets under shifting market conditions, in addition to the difficulty and excessive expense of securing a credible third-party perspective.”
According to STATVAL, the benchmarking reports “support annual business planning, providing insights into a property’s competitive position. Impact of implementing annual business plan items can be measured as part of the next planning cycle.” They can also be used in annual hold-or-sell analyses.
Operations benchmarking is a long-established practice in many industries, often provided by third parties and data services that rank companies in a wider peer group. Ultimately, though, such services, while valuable, are tools and not absolute guides, as specific conditions, expectations, resources, and abilities vary widely among companies, even in a narrowly defined industry sector.