OUTLINE for YEAR END PROJECT

Summary
Your boss asked you to evaluate a commercial real estate deal the company is considering buying. You job is to value the investment and make a recommendation.

Elevator Pitch
What’s the STORY – is it a good deal or a bad one?

Highlights: Price, Cap Rate, NOI, location, # units or size, year built, value add possibility.

Property Details
Physical Characteristics – age, condition, floor plans, amenities, depreciation
Site – utilities, topography, flood plain, environmental, off-site issues
Area Map – Aerial Photo – Interior & Exterior Photos
Zoning

Market Overview
Metro Area
Sub-market – market drivers, transportation, population growth, education
Demographics – Traffic count, Income & Education Levels
Economic & Neighborhood life cycle

Financial Analysis
Comparables – Recent Sales & Rental Comps
Historical Cash Flow or Projections
Opinion of Value – high – low
Debt??

Conclusion
Recommendations Negatives
Interest Rate Risk
Timeline
Exit Strategy

Your Qualifications/ Resume

Major Project Overview

This is a general guide to help you organize your project. It is not the definitive blue print for success. Please be creative in adding or enhancing the elements of the different types of development.

I. Three types of Commercial Development Ventures to Consider:

A. Purchase of an Existing Property
 Location Map/Aerial
 Site Plan (Survey)
 Rent Roll
 Economic Analysis
 Financing Package
 Return on Investment
 Elevations/Renderings
 End Game (Prove how this going to be successful-project end of investment)

B. Renovation of a Property – Value Add
 Pre Renovation
Location Map/Aerial; Site Plan and Elevation; Rent Roll; Economic Analysis
 Renovation Process
Scope of Work; Construction Budget; Construction Loan; Construction Process
 Post Renovation
Site Plan; Elevations; Rent Roll; Economic Analysis; Permanent Loan

C. New Construction
 Location Map/Aerial
 Site Plan
 Site Plan with Building
 Construction Budget
 Leasing Marketing Plan
 Construction Loan
 Operating Proforma
 Permanent Loan
 Opening

II. Research Sources
 County Tax Commissioners’ Office
 Property Owner; Leasing Agents
 Planning and Zoning Office
 County Water and Sewer; DOT/County Roads
 Construction/Architect Companies
 Search Vehicles
 Demographics