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Overview, Property, Condition Study
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Overview
Through our network of contacts we find distressed real estate and provide a full array of due diligence and completion services for large investment funds. We also acquire distressed properties in conjunction with our slate of private investors. We function as asset service manager, and posses in-house construction and development expertise’s to successfully move the property from acquisition, completion, stabilization and disposition. Our primary objectives are creating value and determine the highest best exit strategy to maximize return.
Property Due Diligence
In order to complete a successful real estate acquisition, proper due diligence is a must. Our first step is to complete and gather data pertaining to the property. This includes a thorough review of the survey, environmental reports, subsurface investigation reports, and appraisal. We review the title to be certain there are no lien defects. Our team conducts an inquiry with the local municipality is necessary to check the condition of permits, impact fees, water/sewer connection fees and the status of any outstanding real estate taxes. The condition of outstanding community development district bonds and/or homeowners’ association fees is also determined. Our research work includes a discussion with all parties connected with the property in order to obtain an understanding of the project history and current management status.
Condition Study
Our team conducts an on-site field investigation to evaluate the physical condition of the property. This includes both the horizontal and vertical development. The building interior and exterior is evaluated for completion, quality and any outstanding warranty issues. Any apparent construction defects are recorded. Landscaping, wearing surfaces, storm drainage, utilities and site amenities are inspected are inspected for completion and quality. The following structure is used to analyze the asset condition and determine the outcome of the process:
• Strategic Solutions
o Condition summary
o Loan status
o Physical status
o Document status
o Legal status
o Permit status
o Borrower status
• Building and Grounds Inspection
o The building envelope
o foundation and structure
o Construction Defects
o Quality Report
o Warranty Issues
• Value Determination
o Liquidation
o Completion as planned
o Cost to complete
o Construction completion estimate
o Development completion budget
• Repositioned - use change
o Alternative uses – revised pro-forma
o Alternative site plan
o New value creation
o Market analysis
• Disposition Recommendations
o Exit Strategy plan
o Weighted discount analysis
o Benefit analysis
o Preparation of marketing packages
o Disposition solicitation
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