Due Diligence & Lease Abstraction
Angelic Due Diligence
Investors acquiring or investing in commercial real estate typically receive a rent roll and other documentation about the property from the seller. Ultimately any information provided has but one purpose: to sell the property at the highest price in the shortest amount of time. The challenge is to determine the property’s real value. Angelic Due Diligence audit’s the seller’s numbers -- a paper intensive, time consuming and detail-oriented process that involves proactively searching, sorting, and synthesizing every piece of financial data necessary. We obtain a full property description, income and expense data, market comparables, and perhaps an Argus run demonstrating future cash flow analysis. We then do a painstaking review of the property’s historical financial statements, projected budget, income and expenses, comparing these findings against the numbers provided by the seller. The goal is to gain a ‘complete picture’ of the property.
This can apply for sellers as well, using this same process to "scrub" and review data before submitting it to buyers, protecting a seller from potential allegations of misrepresentation, and just as importantly, making sure nothing that might increase value is missed. It is surprising how many omissions are made that benefit the buyer, not the seller, in the sales process on investment commercial real estate.
Refinancing a property leads to a similar ownership objective - making sure information presented to potential lenders is not only accurate, but complete, maximizing loan proceeds and terms, and ensuring that the loan diligence process does not uncover inaccuracies that impact the would-be loan terms.
Our Comprehensive Suite of Services:
- Financial Due Diligence - Angelic Due Diligence meticulously reviews and tests the property’s data, examining all income and expenses, financial statements and budget projections. We then compile and present the results in a comprehensive, user-friendly Executive Summary with supporting data.
- Lease Abstracting and Administration - Angelic Due Diligence carefully extracts every significant item within each lease file to compile customized and easy-to-read Lease Abstracts and Master Reports.
- CAM Services - Angelic Due Diligence accurately reconciles each tenant’s CAM reimbursement amount.
- Tenant Estoppel/SNDA Preparation - Angelic Due Diligence drafts, prepares and delivers Tenant Estoppel Certificates and SNDA Agreements.
- Offering Memorandum - Angelic Due Diligence drafts, prepares and delivers a marketing-savvy report showcasing a property for use in obtaining financing.
Angelic Lease Abstracting
Angelic's lease abstracting process reviews, analyzes and abstracts commercial real estate leases. We focus on both financial and legal lease terms, customized for each assignment. Each project is assessed in great detail to provide a variety of reports addressing discrepancies, missing documents and other critical issues.
Our Comprehensive Suite of Services:
- Lease Abstracts - Review and summarize complete lease files (amendments, exhibits, schedules and memoranda, along with all correspondence) and extract significant items to compile a lease abstracting report. Additional reports detailing specific facets of the leases and property are also available.
- Lease Administration - Create efficiencies and lower the bottom line, including expense review, invoice validation, and monitoring of critical dates, obligations, options and rights.
- CAM (Common Area Maintenance) Services - Thoroughly examine the CAM structure, obligations and payment methodology for each tenant. Common Area Maintenance (CAM) billing requires deep knowledge of both real estate accounting and legal lease interpretation.
- Tenant Estoppel Certificates - Draft, prepare and deliver Tenant Estoppel Certificates.
- SNDA (Subordination Non-Disturbance and Attornment) Agreement Services - Draft, prepare and deliver Subordination Non-Disturbance and Attornment (SNDA) agreements on behalf of owners, purchasers and lenders.