2,000 Tenants

Situation

A national commercial real estate owner hired Realogic to abstract leases for their portfolio of over 2,000 tenants.

Solution

Realogic performed a number of critical tasks, including initial and ongoing lease abstraction, coordinating scanning of all lease documents and integration of key lease data points into the client’s lease flow process.

As a result, our client was able to track and manage all critical lease dates more efficiently. They had quick and easy access to all lease information, including original leases and abstracts. And their critical lease data was integrated into their lease flow process, all of which enabled them to manage their properties more efficiently and effectively. Realogic continues to administer leases for the client for over 12 million square feet of property.

Reconciliation of Outstanding Receivables

Situation

Sizable outstanding receivables jeopardized the sale of a client’s 750,000 square foot office building. The asset manager requested our help identifying, quantifying and collecting the amounts owed.

Solution

Realogic reviewed leases on-site and performed reconciliation work. We prepared invoices for back rent and presented them to tenants. $1 million in outstanding receivables were collected and reconciled within 45 days to expedite the closing.

Ongoing Lease Administration Using Client’s Accounting Software

Situation

A large national client made the strategic decision to outsource their entire lease administration function. Lease data was to be entered directly into the client’s CTI® accounting system.

Solution

Realogic spent two weeks on-site with the client discussing lease administration procedures and the use of CTI® for lease administration. The client gave Realogic remote access to the requisite CTI® modules and added us to the e-mail distribution list for new lease documentation posted to SMARTCabinet®. Upon receipt of new lease documents, Realogic administered leases directly into CTI®. We also became the primary point of contact for property managers with questions about leases from their buildings. Realogic continues to administer leases for this client.

 

Realogic Finds $4 Million Closing Credit

Situation

The buyer of a 650,000 square foot office building asked Realogic to abstract 110 leases, compare the results to existing valuation-DCF files and to present all reconciling items to the buyer to negotiate potential credits at closing.

Solution

Realogic discovered and documented 55 reconciling items, then conducted a sensitivity analysis on them at our client’s request. Realogic’s work uncovered $4 million of free rent for an anchor tenant that was not included in the original model of the building.

$3 Million “Hit”

Situation

A property manager discovered that the letter of credit documentation for a newly assigned property was deficient. The property’s previous owner/manager had allowed a large letter of credit to expire, which was missed during the due diligence process. The tenant eventually defaulted, costing the building $3 million.

Solution

To help prevent future defaults and losses, Realogic began to more carefully administer the building’s leases and added letter of credit tracking to the lease administration process. As a result, the expiration dates for all tenant letters of credit are now documented and closely monitored, and the property manager routinely receives an updated critical dates report.

FDIC Portfolio Due Diligence and Underwriting

Situation

A top private equity fund needed due-diligence done on a cross section of a large FDIC pool. The fund was bidding to participate in an FDIC structured sale. The portfolio consisted of both performing and non-performing loans in all asset classes for properties located across the country. The client needed due-diligence done on approximately 150 of the loans, most originated by small to medium-sized banks.

Solution

Armed with limited information, Realogic performed site inspections on 60 of the 150 properties. Next, we reviewed the contents of the loan files to determine the loans’ default status, DPO probability and amount, cross collateralization with other properties and other critical information. We then reviewed rent rolls and historic financial information, gathered intelligence to determine property occupancy and current asking rents and compiled market data, such as market rent and occupancy. Based upon our findings, we generated in-place and stabilized values for each property. Finally, we delivered an asset summary and site inspection package for each property, including cash flows, maps, photos and all market data.

 

Contract Loan Underwriting

Situation

A major Wall Street investment bank experienced sudden growth and needed assistance responding to an increase in loan volume and hightened customer expectations on loan turnaround time.

Solution

Realogic placed a multi-level team in the field that was supported by our corporate office. Our team leveraged their diverse and extensive experience in CRE appraisal, valuation, consulting, securization, due diligence and underwriting for the assignment. They quickly assimilated to the bank’s culture and supported every step in the loan process, from initial sizing through closing. Realogic’s ability to scale quickly, coupled with our broad and diverse experience, enabled the bank to meet the increased demands of its customers.

Custom Excel® Models For An Investment Bank

Situation

An investment bank engaged Realogic to design a custom Excel® model to analyze over 1,000 debt and equity positions across all asset types. The model needed to accommodate unleveraged assets and illustrate each asset’s existing cap stack. The client also wanted to input the requisite assumptions for the ideal hold period and disposition of said assets.

Solution

The Realogic team continually solicited feedback from our client and worked closely with them throughout all stages of the project to ensure that implementation was smooth and efficient. Realogic leveraged its deep understanding of financial analysis as well as its expert Excel® skills to create and present a solution that met the client’s immediate and on-going needs.

On-Going Financial Analysis

Situation

A national sponsor of multiple private equity funds needed an outsource partner to assist with financial analysis, both during and after an intensive acquisition effort.

Solution

Realogic managed the entire financial analytics process on an on-going basis for the client’s portfolio of 75 buildings with 12 million square feet of space and over 1,000 tenants. Realogic’s work included:

  • Maintaining asset management  files for new and existing tenants
  • Importing valuation-DCF data into a Realogic-built Excel® model to calculate property returns and balance credit
  • Analyzing data for due diligence transactions
  • Building an acquisition model and importing the client’s data into it
  • Assisting with the budgeting and valuation processes
  • Developing a web-based system to streamline the client’s reforecasting and budgeting processes

Realogic Partners with Client Acquisition Team

Situation

A mid-sized REIT sought a partner to support its five-member internal team for work on single asset and portfolio acquisitions, as needed.

Solution

Realogic provided a wide range of services to the client on an on-going basis. These included completing lease abstracts during due diligence; conducting cash flow analysis and valuation and return sensitivities under tight time-frames; using valuation-DCF software to compare cash flow analysis results; and, upon closing, supporting asset management.

Lease Administration For 50 Million Square Feet of Property

Situation

Realogic’s client needed their financial and non-financial lease information organized in a concise, easy to use format to help them make sound decisions and retain tenants.

Solution

Realogic used leading CRE software to administer leases for the client on an on-going basis. Critical data, including key financials, options and encumbrances dates, termination rights and color stacking plans, is now shared continuously with the client’s property and asset managers, owners, leasing agents, property accountants and lenders.

2,000 Tenant Oracle® Import

Situation

The owner of a portfolio of special-use assets requested a valuation-DCF run to help evaluate a joint venture proposal from an investment banking firm.  The client needed the work completed within seven business days.

Solution

First, Realogic confirmed the assumptions that were required. Next, we mapped and imported the appropriate data fields from Oracle® into a valuation-DCF software product.  We conducted a detailed review of the imported data to assure that it was accurate. Finally, we conducted a sensitivity analysis using one of our proprietary software products. In just four days, Realogic delivered a complete, accurate 2,000 tenant files to the client.

Realogic Straight Lines 5 Years of Rental LLCome

Situation

A client was going public and needed to straight line their rental income for the previous 5 years. Their portfolio consisted of nearly 20 million square feet of property and over 2,500 tenant records. Each asset required a three to five year analysis, depending on the acquisition date.

Solution

straightlinerentRealogic created a customized Excel® model to calculate the straight line rental revenue and adjustment amount at the tenant level, with building level aggregation. Realogic then used historical rental rolls to prepare tenant rosters for each building to determine its occupancy over the previous five years. After the initial setup, Realogic worked with the client’s accounting firm to audit the results and resolve any discrepancies to comply with standard accounting guidelines.

The Opportunity Zone program was launched by the Federal Government as a means of spurring investment in commercial real estate in economically disadvantaged areas of the country. Investing in real estate projects in Qualified Opportunity Zones, or QOZs, offers a variety of enticing tax benefits, including:

  • An immediate partial deferment of taxes on capital gains that are re-invested in Opportunity Zones
  • A complete waiver of taxes on capital invested through the Opportunity Zone program
  • Solid, stable long-term returns on investment
  • Bringing new, affordable housing and retail, office and industrial space to the underprivileged areas that need them the most

This powerful combination of significant economic and altruistic benefits has generated enormous interest in Opportunity Zones and Qualified Opportunity Zone Funds from commercial real estate developers, investors, owners and fund managers.

Our Experience

Realogic has been at the forefront of Opportunity Zone development and investment analysis since the QOZ program’s inception. Since that time, we’ve been directly involved in a wide range of Opportunity Zone projects and worked with numerous Opportunity Zone leaders, including investors, developers and even policy makers. We’ve gained a tremendous amount of knowledge and hands-on experience with Opportunity Zones in just a short time.

But really, our relevant experience and project work go back much further. For nearly 30 years, we’ve been laying the foundation to be an indispensable resource for anyone doing work with Opportunity Zones today. We’ve been building, sharpening and refining the right tools, like our Excel-based proforma development models; acquiring indispensable skills, knowledge and expertise in all aspects of commercial real estate development, investment and fund management; and we’ve been hiring and training the right people to provide the services, support and insights our clients from across the commercial real estate spectrum want and need. As a result, our tools, methods, processes and resources are all tested, proven and unmatched by anyone in the commercial real estate industry.

In short, however you’re involved with Opportunity Zones- development, fund creation, fund management or asset management- the team at Realogic has the right skills, resources, experience and Opportunity Zone and commercial real estate expertise to help you achieve your objectives.

Our Platform

Realogic offers a range of essential solutions, services and insights to help commercial real estate developers, owners, funds and fund managers reduce their expenses and gain access to specific skills, tools and expertise to help maximize the returns on their Opportunity Zone projects. By design, our solutions, services and insights are intended to be used singularly or in combination, and we work with our clients to determine the optimal balance. As your fund or project progresses from conception to completion, we can add value throughout the Opportunity Zone cycle.

 

Solutions

Excel-Based Models

Our proven, propriety development, asset management and fund-tracking models have grown and been tested since the inception of our firm nearly 30 years ago, and they’ve been used as the foundation for thousands of successful, profitable commercial real estate projects. We offer flexible models for a wide range of ground-up development, asset management and fund management projects, including:

Accurate and comprehensive, our models can be used individually or in combination for more complex projects involving mixed-use development or funds with varying focuses. Since our models are in Excel, the formulas are transparent so that you can see exactly how numbers are calculated. Plus, for anyone with even modest Excel skills, changing variables and sensitizing data is fast and easy.

Services

Staffing

Our experienced team of commercial real estate professionals can help with your Opportunity Zone projects however you need, whenever you need. We can assist with simple yet important tasks, like modeling your proposed and existing deals or auditing the results of your partners’ projects for accuracy. We can supplement your own resources by providing a specific expertise that you may be missing or lacking scale, like advanced financial analysis or underwriting support. We can also do more advanced work, like converting, standardizing, and identifying and correcting errors in the models you receive from outside, making it much faster and easier to review, analyze and consider development or investment proposals and decisions. Working with Realogic also helps you minimize costs by allowing you to outsource rather than add full-time staff or purchase technology or other critical resources.

Insights

OZ Platform Perspective

Combine it all – our proven models; our skilled, experienced people; our established systems and processes; our commercial real estate and Opportunity Zone expertise – and you have the Realogic OZ platform, an invaluable resource for anyone looking for more holistic help with their Opportunity Zone program. You can leverage any or all of our resources to plan, architect, build and manage any modeling aspect of your Opportunity Zone program.

Realogic gives you peace of mind and allows you to focus on what you do best. Since our OZ platform is flexible and scalable, the combination of services we provide can evolve as your project or fund grows and evolves, ensuring you have the long-term support you need to sustain your success.