real estate advisory service encompasses deal origination, purchase and sale negotiation, underwriting, due diligence and finance functions.
When investing for clients, each potential acquisition must satisfy three essential conditions:
It must provide our client with adequate security of capital;
It must complement our client’s existing real estate portfolio; and,
It must meet our client’s threshold for risk-adjusted return.
Once an investment opportunity is selected that meets the above conditions we will underwrite using a thorough approach and perspective refined over many years and several billion dollars of acquisition and disposition experience across all major markets.
Whether buying or selling, effective negotiation requires that an advisor understand the subject asset better than the vendor or purchaser counterpart. Our underwriting program encompasses a macro review of the market in which the asset is located and a micro review of all key elements of the asset such as building physical and environmental condition, building operating cost history and recovery history for both operations and capital costs, building layout, stacking and leasing flexibility, tenant expiry profile, tenant rights and tenant financial condition.
We provide our clients with a complete written analysis of all of the above factors well in advance of the expiry of due diligence periods to enable them to make informed investment decisions. We will not adjust our key set of financial assumptions to make the deal work. Instead, we apply strong underwriting capabilities, establish base-case modeling assumptions and sensitivity analysis and then work with our clients to determine the acquisition price that meets their risk-adjusted return criteria.