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Online registration for this program has closed.
Comprehensive Due Diligence for Commercial Real Estate Assets
07/21/2009, 9:00 am - 5:00 pm
Tuition $1200.00
AIA/CES units: 8 AIA/CES HSW units: No AIA/CES SD units: No
ASLA HSW units: No
The first rule for ownership of real estate--commercial or residential--is caveat emptor: Let the buyer beware. A thorough due diligence process provides the potential owner with an opportunity to investigate an asset and to understand the risks associated with that particular property or portfolio of properties. The due diligence process also allows the potential owner to assemble information needed to plan, budget for, and operate the property before going forward. A thorough due diligence process allows for the confirmation of value of the asset and is vital to any commercial real estate transaction, as it ensures that an owner's goals can be met.
Although the due diligence process typically is short in duration, the information gathered during that process will determine the plan, budget, operating strategy, and opportunities for value enhancement for the property for its owner's hold period, regardless of length. The program will outline typical timeframes for due diligence. We will also discuss strategies for building a due diligence team and the types of expertise needed (by both staff and consultants) to assure thorough and timely investigation of the asset.
The program will then discuss the components of due diligence: financial, physical, and development. Discussion of financial due diligence will encompass the various records and types of reporting that must be assessed to evaluate the financial integrity of the asset under consideration, including both income- and expense-side information as well as lease compliance. Examination of physical due diligence will walk participants through a comprehensive evaluation of the environmental, physical, and structural components of a property, including a detailed discussion of the types of consultants engaged and the additional types of property-condition assessments and reports that may be needed to evaluate the asset and develop a capital plan for its operation. For development due diligence, we will outline the additional requirements that pertain to owning land for the purpose of commercial development. This segment of the program addresses strategies for arriving at an understanding of the codes and zoning that apply to the property and demonstrates how to evaluate the risks and feasibility of the project through the preparation of a pro forma. The program will also discuss permitting and property-tax structures as well as zoning, easements, and potential physical constraints.
Upon completion of this program, attendees will have a comprehensive understanding of the key elements of the due diligence process and will be better equipped to evaluate assets.
This program is intended for real estate professionals who are responsible for the acquisition, disposition, ownership, and value enhancement of commercial assets as well as real estate finance professionals, investors, analysts, asset managers, and legal counsel charged with evaluating assets. Property and/or facility managers who wish to gain a greater understanding of asset management will also benefit from this program, as will construction and development professionals. This program is also valuable for professionals who perform due diligence-related services for owners, investors, and lenders.
Participants will:
(1) learn the full process of due diligence of commercial real estate projects in the financial, physical, environmental, legal, and development disciplines.
(2) understand the pitfalls and exclusions in traditional due diligence processes.
(3) analyze consultant and professional reports that result from due diligence activities.
(4) master the planning and preparation for a targeted, timely, and effective due diligence process.
(5) compare the initial valuation underwriting to the findings of the due diligence process and assess the impact on property valuation.
(6) understand the tools available to facilitate the efficient distribution, analysis, and communication of critical due diligence information.
Online registration for this program has closed.