Transaction Due Diligence
Due diligence is a vital process that often places huge strain on organizations in situations where time is of the essence and accurate information is critical.
Our due diligence program lets buyers, sellers, developers and lenders compile accurate data, identify critical issues and reduce risk while accelerating the real estate transaction or investment. Solutions range from simple verification and sampling to full-fledged investment underwriting.
Our tools and our experience allow rapid compilation and review. Flexible reporting means that key issues can be revealed without repeated review of lease abstract documents. Buyers and sellers can identify issues early, avoiding last-minute surprises. We also can work in an overflow capacity, training alongside your internal team and working within your existing programs.
Among our due diligence activities are:
- Complete underwriting of an investment or development
- Lease abstracting and cataloging standard clauses
- Estoppel analysis and mail merge
- Comparison to cash flow models
- Expense analysis and variance testing
- Review of existing capital structures
- Lease expiration and renewal reports
- Security deposit testing
- Early terminations, options review
- Contract reviews
- Property inspections and market reviews
- Program development
Examples of our services include:
Life Insurance Investment Arm – This major portfolio investor sought help with its largest Midwest acquisition of the year. Our complete due diligence program included abstracting and cataloging more than 100 leases, preparation of estoppel letters, income and expense review, and sampling of receivables and payables. The program was completed ahead of schedule and identified significant negotiation points prior to closing.
Investment Bank – In conjunction with an IPO for a REIT, members of our team conducted a full underwriting due diligence process for all assets contemplated for inclusion in the IPO including property inspections, title, zoning and lien waiver verifications, market reviews, income and expense analysis and verification and review of appraisals and environmental reports.
Mortgage Lender – This national conduit lender needed extra underwriting capacity while it launched a new loan product. We trained underwriting staff in its processes and underwrote more than 50 loans. Later, we developed processes and pricing tools for its small loan program.
For more information, contact:
Noah Shlaes
Managing Director, Strategic Consulting Group
312.224.3185
Elizabeth King Forstneger
Director, Strategic Consulting Group
312.224.3116
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