Due Diligence Process

We carefully and meticulously manage each step of the due diligence process to ensure a successful transaction at the opportune price needed to deliver our required investor returns.

Acquisition Due-Diligence

  1. Marco Market Analysis
    • Economic & Employment Growth Trends
    • Demographic & Population Growth Projections
    • Capital Market Conditions (Availability and Pricing of Debt & Equity)
  2. Micro Market Analysis
    • Local Government Policy Issues
    • Supply& Demand Imbalance & Absorption Projections
    • Market Size
    • Rent Levels
    • Tenant Demand Analysis
    • Analysis of Current Development projects
    • Neighborhood Analysis
    • Analysis of Subject Property’s Competitive Advantages and Disadvantages
  3. Site Analysis
    • Environmental Due Diligence
    • Lot Size & Dimensions
    • Zoning & Site Constraints
    • Parking Code Requirements
    • Physical Site Inspection (Geotech/Civil Engineer)
    • Soils Condition
    • Earthquake Zone/Flood Zone
    • Land Survey
    • Existing and/or Prescribed Easements
  4. Physical Inspection
    • Condition of the Physical Improvements (Effective Age)
    • Condition of the Parking Lot/Parking Structure
    • Condition of the Building Systems
    • Adequacy of the Vertical Transportation Systems (Elevators, stairs, Etc.)
    • Code Compliance
  5. Building Design, Space Planning & Building Amenities
    • Quality of Design
    • Quality of Improvements
    • Condition of Landscaping
    • Building Security Systems
    • Building Amenities
  6. Documentation Review/Legal Review
    • Title Review & Alta Survey
    • Review of  CC&R’s and REA’s (Reciprocal Easement Agreements)
    • Recorded Liens
    • Building Permits & Certificates of Occupancy
    • Service Contracts and Warranties
    • Deed Restrictions
  7. Lease Review
    • Review of All Existing Leases, Amendments, Options, etc.
    • Term of Lease
    • Basic Rent & Escalations
    • Specified Parking Arrangements (Permits vs. Exclusive Spaces)
    • Lease Termination Provisions
    • Options (Expand, Renew, Purchase, Terminate Lease, etc.)
    • Insurance Requirements
    • Estoppel Certificates
    • Building Signage Rights
  8. Income Analysis
    • Projected vs. Actual
    • Proforma Assumptions
    • Other Forms of Rent (Parking, Signage, Storage, etc.)
    • Aging Report
  9. Expense Analysis
    • Verify Expenses
    • Verify Level of Services Provided
    • Utility Expenses
    • Pre-Purchased Contracts & Warranties
  10. Questions for Property Owner
    • Reason for Selling
    • Existing Financing
    • Troubled Tenants
    • Issues with Property
    • Environmental Issues
    • Compliance with Code and Law
  11. Proforma Analysis