Carpe Realty provides experienced complete final underwritings with detailed due diligence analysis of income and expense line items. Our professionals review historical cash flow streams from prior years, trailing 12 and future budgeted figures. We review all tenant leases and compare them to rent rolls and estoppels while focusing on potential credit obstacles that may affect future revenue (obstacles including co-tenancy options, early termination options, go dark clauses or reductions in rental income). Income analysis includes a thorough breakdown of the rent roll, a detailed CAM reimbursement reconciliation with future projection calculations, a review of sales, occupancy costs and percentage rents (if applicable), as well as a review of other ancillary revenue streams. For hospitality assets, we review monthly and annual occupancy and rate details compared to Smith Travel Research reports. Detailed expense analysis is performed on real estate tax assessments, insurance, utilities, management agreements, ground leases and repair figures. Total expenses are then evaluated as a percentage of revenue compared to other market assets. As needed, Carpe Realty can review other documents including reciprocal easement agreements affecting other properties and professional agreements with service companies. Our capital markets and investment banking experience spans many commercial property types (see Commercial Real Estate Expertise).
Lease Audit & Abstracting
Carpe Realty reviews leases and provides pertinent feedback quickly to brokers, owners, lenders and investors via detailed abstracts. Our professionals are experienced in the vast lease structures as well as many real estate operator formats. Depending upon client demand, we can utilize varying levels of review including legal, accounting or finance backgrounds.
Estoppel Review & Preparation
Carpe Realty reviews estoppels and can prepare client estoppel forms, ready for signature by tenants. Given a typical response time of 10 to 20 days after receipt by tenants, it is important to get the estoppel forms right the first time. Every estoppel is important for the lender and getting corrections made can often be challenging.
Third Party Review
Carpe Realty reviews third party reports including appraisal, environmental, engineering, seismic and market study reports. All findings are summarized and/or can be included in the Credit Memo Preparation or Asset Summary Preparation (see Report Preparation Services).