Due Diligence

Realogic’s team has the financial and operational expertise to conduct in-depth acquisition, financial and disposition due diligence analysis and review. Realogic works with some of the largest real estate owners, banks, funds and REITs, providing due diligence services throughout the transaction cycle.

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Financial & Operational Review


life-cycle-graphic Realogic begins the process by providing the seller and lender with a thorough, detailed checklist developed and honed through decades of property due diligence work. The client reviews the checklist and identifies the tasks they need Realogic to complete.

Financial due diligence services may include the following:

  • Financial:
    • Historical Comparison
    • YTD Review
    • Budget
    • GL Review
  • Billing
    • Rent Roll Audit
    • Billing Statements
    • Recovery Audit
    • Accounts Receivable
    • Percentage Rent
  • Operations
    • Service Contracts
    • Licenses and Permits
    • Union Contracts
    • Management Agreements
    • Ground Leases / Air rights
    • Insurance/Utilities
    • Parking/Security
    • Accounts Payable
    • Work Orders
    • Personal Property
    • Certificates of Occupancy
  • Real Estate Taxes
  • Leases
    • Abstracts
    • Options and Encumbrances
    • Historical Occupancy
    • Walk Through
    • Tenant Improvements and Correspondence
    • Leasing Commissions
    • Parking Requirements
    • Credit Reviews
  • Financial Projections
  • Physical and Environmental
    • Property Conditions and Third Party Reports
    • Coordination of Site Visits
  • Mortgages
    • Loan Document Review and Abstraction
  • Legal
    • Estoppel Certificate and Contract Exhibit Preparation

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Additional Due Diligence Services


Realogic prepares estoppel certificates and reviews seller estoppels prior to delivery to the tenant. We can also assist with preparing exhibits in purchase & sale agreements. Realogic has extensive experience building all types of exhibits, including:

  • List of Documents
  • Security Deposits
  • List of Service Agreements
  • Outstanding Tenant Costs
  • List of Personal Property

Realogic can also review purchase & sale agreements and summarize any potential language issues that arise during due diligence, such as prorations and leasing cost liabilities.


Transaction Closings


Realogic can assist with property and loan closings. Our transaction specialists prepare the closing statement and calculate all prorations and closing costs based upon the purchase & sale document. Realogic reviews all supporting materials and delivers them to all parties involved in the transaction– the buyer, seller, lender, attorneys and title company. We distribute the wiring information and coordinate the flow of funds between parties and the title company. We also update exhibits as necessary, such as lease documents, and distribute them to participating attorneys.

Due Diligence-Post Closing

Realogic will transfer the due diligence work to the properties, as well as verify any discrepancies noted.


Abstract to Rent Roll Comparison


intuitiver-rent-roll-396-194A critical step in the due diligence evaluation process is comparing abstract and rent roll data.  This includes:

  • Monthly Recurring Charges
  • Annual CAM, OPEX and Real Estate Taxes
  • TI Repayments

 

Lease Abstracting & Administration

The Realogic lease abstracting & administration team is staffed with experienced attorneys, registered real estate agents and award-winning property managers with decades of experience reading, summarizing and updating leases.

Lease Abstraction for Due Diligence


sears-back-horRealogic has provided lease abstraction services for due diligence for over 25 years, including for some of the largest commercial real estate transactions in recent history. Whether you need abstracts for a single building or an entire portfolio, our lease abstraction process can be scaled to meet your specific needs.

The Realogic team can abstract leases into virtually any format, including accounting software or Microsoft Excel® or Word®.

Realogic’s advanced lease abstraction software enables us to provide customized abstracts and other critical data to our clients to help them make smart, well-informed business decisions. Upon closing, Realogic can export building and lease data into the leading CRE accounting systems, including MRI®, CTI®, JD Edwards® or Yardi®. This eliminates the need to re-key data, which saves time and reduces errors, and allows for tenants to be billed immediately, which improves cash flow and reduces receivables.

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Ongoing Lease Administration


Whether you need abstracts for a single building or a turnkey solution for your entire portfolio, Realogic’s services can be scaled accordingly to meet your needs. Our advanced software allows us to standardize our lease abstraction process, ensuring the accuracy, consistency and uniformity of our results. In addition, our software integrates with major accounting and valuation-DCF software and document management systems, so data can be easily shared between systems. Our lease administration team can also work with proprietary systems and has the background and expertise to abstract leases directly into account software or Microsoft Excel® or Word®.

Monthly Lease Administration Reports

The Realogic lease administration team can provide a series of standard reports, including rent rolls, options and encumbrances and occupancy details, as well as up-to-date lease abstracts for every tenant.

Automated Critical Date Emails

Using lease administration software, Realogic can deliver a critical dates report via email to a customized list of recipients. The critical dates report summarizes in chronological order all impending lease events, including expirations, expansion and contraction options, rights of first offer or first refusal, extension options and much more.

Financial Document Abstraction


non-lease-docsIn many situations, abstracting mortgage documents or partnership agreements are critical aspects of asset management workflow. Realogic has extensive experience abstracting non-lease financial documents. In addition, generating customized abstracts outlining non-lease documents is a core feature of the abstraction software we use.

Lease Data Migration


Realogic can enter your abstract data into your accounting system. We’ve developed a series of best practices for the transfer and ongoing synchronization of data between your lease abstraction software, accounting system, DCF solution and other applications.

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Strategic Planning & Analysis

The Realogic team is comprised of commercial real estate experts with extensive experience in every aspect of the commercial real estate industry, including acquisitions, dispositions, underwriting, valuation, due-diligence, property management, accounting and lease administration. From evaluating property level cash flow assumptions on an office building portfolio to reviewing leases to assess a retail property’s weaknesses, Realogic can support your firm’s strategic planning and analysis initiatives.

Financial Modeling                                           

DCF Modeling

Realogic has experience modeling all types of commercial City-Sears-396-194properties, including office, retail, commercial, multi-family and industrial buildings. We’re also masters in CRE valuation-DCF software applications. Together, our software and commercial real estate expertise make us well-suited to take on even the most complex and difficult DCF modeling or valuation assignment. Our comprehensive set of DCF modeling services include model creation, conversion, updates and audits, as well as creating models utilizing data from external systems.

Standardized Excel® Models

Realogic offers a broad array of proprietary Excel® models to power transactions in every stage of the CRE lifecycle, from property development through disposition, and for creating detailed, precise debt and equity waterfall models. We offer models created specifically for each class of CRE assets, including office, retail, industrial and several multifamily scenarios, as well as add-on modules for specialty properties, including data centers, hotels and parking facilities. Realogic can also provide standardized models to assist with valuation and asset management and for creating and managing CRE funds.

Created by a team of veteran CRE professionals with extensive experience modeling all types of buildings, our proprietary models feature advanced, proven formulas that generate extremely accurate results and make sensitizing even the most complex assumptions and critical variables easy. Dozens of leading CRE companies have relied upon our standardized Excel® models.

Custom Excel® Modeling

Realogic provides custom Excel® modeling and analysis services for CRE lenders, developers, owners and investors. Our customized models incorporate advanced Excel® tools and visual basic commands and are built to our clients’ specifications. Realogic’s customized Excel® models are comprehensive, user-friendly and scalable for any size project to facilitate critical asset and portfolio management decisions.

Our custom Excel® models can support a wide range of projects, including acquisition and development, equity waterfall and debt modeling at a fund or corporate level, while offering superior cash and asset management functionality. We can build a completely custom model for you from the ground up.  Or, to save time and lower costs, we can start with one of our standard Excel models and customize it with the specific features and functionality you want.  Realogic can also provide customized reporting and analytics.

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Property & Portfolio Valuation

Realogic can provide USPAP compliant valuations and discounted cash flow models for all asset types to support fair value and investor reporting and strategic decision making. We will also work with you to customize the format of reports and data for presentations to principals, investors or other key stakeholders.

Real Time Valuation Software Updates

Instead of painstakingly updating your valuation-DCF yourself on an annual or semi-annual basis, Realogic’s valuation software experts can keep your models up-to-date in real time. Our team can help you keep your financial projections and valuations current by locating and inputting your critical documents, including:

  • New Leases
  • Lease Amendments
  • Early Terminations
  • Capital Budgets
  • Budgets and Reforecasts
  • MLA Updates and Projections

In addition to adding new asset financials, your Realogic team can conduct lease analyses, develop detailed scenarios and provide models to lenders and brokers, if needed.

Portfolio Cash Flows

Whether you own two properties or 1,000, Realogic can create models in Excel® or any other CRE software solutions that allow you to analyze precise sensitivities and evaluate performance.

Asset Management

Realogic has extensive experience modeling all types of commercial properties, and we are experts in all leading valuation-DCF CRE software solutions. In addition, Realogic can provide customized Excel® modeling and data analysis services, producing detailed, accurate models that are comprehensive, user-friendly and scalable for any size project.

Budgeting & Reforecasting Services

Realogic can provide customized financial modeling and reporting solutions, on-site temporary staff or back office support to supplement and enhance your budgeting and forecasting processes.

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Underwriting

Realogic possesses a diverse real estate investment and analysis skill set, making us uniquely qualified to provide the breadth of expertise necessary to assist throughout the underwriting process.

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Capital Markets Surveillance

Our extensive experience in structured finance, CMBS and secondary markets enables Realogic to provide unparalleled reconnaissance to our clients. The first step in our surveillance process is to educate our clients on the positions they may hold, then quickly and efficiently conduct mark-to-market and discount/premium yield analyses. This allows our clients to effectively understand and manage their positions and identify new opportunities within the marketplace.

Distressed Debt Analysis

Realogic has helped our clients successfully navigate the complex and ever-evolving world of commercial real estate for over 25 years. Using our extensive experience in distressed debt and leveraging our relationships with banks’ special servicers and REO divisions, Realogic provides our clients with the information and analyses they need to determine appropriate haircuts at any subordination level.

Custom Modeling

excel-comp-screen-396-194Realogic has extensive experience creating discounted cash flow models for all types of commercial properties, including retail, office, multi-family, industrial and mixed use.

DCF Modeling

Our teams have years of experience modeling discounted cash flow using the most popular DCF software tools. We have done DCF modeling for all types and sizes of CRE portfolios, from the small and simple to the large and extremely complex. The practical, hands-on experience we gained in the process enables us to successfully complete any and every type of DCF modeling assignment, no matter how difficult or nuanced. Our DCF modeling services include creating, converting, updating and auditing models, as well as creating models with data from accounting or other financial systems.

Custom Excel® Modeling

Realogic provides custom Excel® modeling and analysis services for CRE lenders, developers, owners and investors. Our customized models incorporate advanced Excel® tools and visual basic commands and are built to our clients’ specifications. Realogic’s customized Excel® models are comprehensive, user-friendly and scalable for any size project to facilitate critical asset and portfolio management decisions.
Our custom Excel® models can support a wide range of projects, including acquisition and development, equity waterfall and debt modeling at a fund or corporate level, while offering superior cash and asset management functionality. We can build a completely custom model for you from the ground up. Or, to save time and lower costs, we can start with one of our standard Excel® models and customize it with the specific features and functionality you want. Realogic can also provide customized reporting and analytics.

Equity

Realogic has a long history of successfully providing private equity firms, funds, REITS, and fund of fund firms with the assistance needed to quickly and accurately assess potential deals. Whether the equity project requires complex waterfall structures, evaluating leveraged and un-leveraged returns or other salient ratios, Realogic consulting has the experience to assist your team with any equity related projects.

Existing Debt and New Issuance

Our team has spearheaded entire underwriting projects from inception to completion of a deal encompassing all elements including compilation of data, analysis of cash flows and relevant ratios such as DSCR, LTV, expense ratios, etc. in order to create pitch books and credit committee memos to help our clients quickly, efficiently and accurately assess a deal without demanding significant resources of their team. Whether Realogic runs an entire deal or assists on specific tasks, our clients can complete larger deals and orchestrate a larger pipeline, leading to increased profitability.

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