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
