Workflow chain

Disposition Pipeline

Determine whether to sell, hold, or refinance a property, then execute the chosen path. The sell path produces net proceeds distributed to investors and optionally defers capital gains via 1031 exchange. The hold path confirms or restructures current debt and resets the next review cycle. The refi path replaces existing debt with new terms and restores the asset to hold-period management.

Trigger

Hold period reaches target year, asset underperforms proforma with no recovery path, portfolio review flags a disposition candidate, unsolicited offer arrives above hold value, debt maturity lands within 18 months, fund approaches wind-down, or market cycle signals peak pricing window.

The chain, step by step
  1. Pull current performance snapshotProperty Performance Dashboard
  2. Run sell vs. hold vs. refi analysisDisposition Strategy EngineGate: THREE-WAY GATE: SELL routes to disposition prep; HOLD routes to refi analyzer; REFI routes directly to loan sizing.
  3. Evaluate hold-path debt options (HOLD branch)Refinancing Decision AnalyzerGate: REFI: proceed to loan-sizing-engine. HOLD CURRENT DEBT: return to hold-period management. SELL: pivot to sell path.
  4. Size new loan and select lender (REFI branch)Loan Sizing EngineGate: Lender selected and term sheet executed. Proceed to refi closing.
  5. Build marketing package and data room (SELL branch)Disposition Prep KitGate: Broker hired and marketing launched. If no acceptable offers after marketing period, return to step 2.
  6. Manage 1031 exchange after sale contract (SELL branch, if elected)1031 Exchange ExecutorGate: EXCHANGE: engage QI before closing, 45-day ID clock starts at close. NO EXCHANGE: proceed to taxable close. FAILED ID: exchange collapses, gain recognized.
How work passes down the chain

Step 1 passes a performance payload (trailing-12 NOI, occupancy, value estimate, debt maturity, remaining hold target, fund objectives) into the strategy engine. The strategy engine passes a recommendation plus pricing guidance and tax implications into the disposition-prep-kit on the sell path, or a current-loan package into the refi-decision-analyzer on the hold path. The refi analyzer passes confirmed refi parameters into loan-sizing-engine. Disposition prep passes estimated net proceeds, closing date, tax basis, and replacement property criteria into the 1031-exchange-executor when the seller elects exchange treatment.

Agents involved
disposition-strategistdisposition-managerasset-managercapital-markets-specialistportfolio-strategistinvestor-relations-director
What it produces and where it can break

Outputs

  • Sell/hold/refi recommendation memo with IRR impact of each path
  • Offering memorandum and data room package (sell path)
  • Executed PSA and closing statement (sell path)
  • 1031 exchange timeline, QI checklist, and boot calculation (if exchange elected)
  • Refi loan sizing comparison and selected term sheet (refi path)
  • Hold confirmation memo with next review trigger date (hold path)

Failure modes

  • Strategy engine recommends sell but market softens during marketing period, leaving asset repriced below minimum acceptable
  • 1031 identification period expires without a qualified replacement property, forcing taxable gain recognition
  • Disposition prep package contains stale financials or unresolved title issues that surface during buyer due diligence, killing the deal
  • Refi path proceeds but rate environment shifts between analysis and rate lock, invalidating the NPV comparison
  • Fund LP liquidity demands force a sale at a price below the hold-value thesis, compressing IRR
  • Unsolicited offer triggers the chain but offer quality does not survive LOI negotiation, wasting disposition prep effort
Human approval gates
  • Investment committee or PM approves sell vs. hold vs. refi recommendation before downstream path launches
  • Broker selection and listing terms approved before marketing launch
  • Offer accepted and PSA terms approved by decision-maker before going under contract
  • 1031 exchange election confirmed and qualified intermediary engaged before closing
  • Replacement property identification approved within 45-day window
Example

A value-add sponsor holds a 120-unit apartment at year 4 of a 5-year target. The property-performance-dashboard shows NOI at 98% of proforma and occupancy at 94%. The disposition-strategy-engine recommends selling into cap rate compression. The disposition-prep-kit builds the OM and data room; 14 offers arrive in a 45-day marketing period. The sponsor accepts a bid, executes a PSA, and elects 1031 treatment. The 1031-exchange-executor engages a QI before closing, tracks the 45-day ID window, and screens replacement candidates. An industrial property is identified on day 38 and acquired inside the 180-day window, deferring the gain.