Physical & Financial Due Diligence

Physical Due Diligence (Building Condition Reports)

Before making or finalizing an investment, clients (builders or lenders) need to perform thorough due diligence. Building on our years of hands on experience, we carefully evaluate and inspect the physical condition of properties through detailed building condition reviews. Our reports also include a detailed estimate of anticipated capital expenditures over a ten year horizon.

Physical Due Diligence Services:

Building Inspections Covering

–     Structural
–     Mechanical
–     Electrical
–     Architectural/Interiors
–     Vertical Transportation
–     Building Envelope & Roof Condition

Financial Due Diligence 

Our financial due diligence team collects all necessary financial records from the current property owner and conducts a thorough review of revenue (rent and recoveries), expense information as well as leases and contracts. We are able to estimate future net operating income, which together with the anticipated capital costs enables us to assist in the evaluation of the proper purchase price of a property. We provide our clients with a comprehensive report to assist them in their acquisition and financing decision making.

Financial Due Diligence Services:

–     Review of leases and preparation of lease abstracts
–     Review of:  Income Statements, Operating Costs and Realty Taxes
–     Tenant Recoveries
–     Maintenance Contracts
–     Preparation of independent Income Statement and Income Projections