The Berkeley-Essex Group

Commercial Property Due Diligence

Provide advisory and risk assessment consultant services to the commercial and multi-family real estate industry. Analyze and underwrite all types of complex real estate investments. Responsibilities include property inspections and the verification of tenant occupancy for commercial properties. Site inspections also comprise neighborhood review including the analysis of rent and sales comparables, engaging appraisers, engineers and environmental companies, gathering, analyzing and spreading historical operating statements and Borrower budgets, reconciling fixed expenses, and preparing cash flow projections with sensitivity analysis. All leases are reviewed for accuracy against rent rolls. Potential issues that could impact future cash flow are identified. On multifamily properties, a sample audit is performed to verify lease terms against the rent roll. Additionally, bank statements and cash receipts journals are reviewed for verification of rent and CAM payments by tenants. Background checks are performed including public record searches, credit references, balance sheet analysis, and real estate experience. A review of current and historical occupancies, rents, concessions, and expenses for the rent comparables and a review of recent prices for sales comparables is performed. Finally, a review of recent demographic trends for the neighborhood is performed.