As a regional center we get project applications in a daily basis. We are very careful in choosing a project since we want to make sure the project is a sound investment opportunity and has a safe exit- strategy for investors. There are two parts of our project analysis
We look into the development team, their experience, financials and success rate Analyze the initial project financials and assumptions provided by The Developer We do market research to understand the supply and demand ratios for the project in their specific area We require the project to be under construction, land purchased, full plans completed, and financing arranged If the above is satisfactory we inform the developer that we are ready to move to the next step
In this step, our team of professionals and board of advisors analyze the following documents: Market study report from a well-known market research company (JLL, Douglas and Elliman etc.)
Economic Feasibility Study by a well-known third-party company (JLL, Douglas and Elliman stc.)
Economic Impact Study to calculate the amount of jobs to be created, a well-known economist writes this. Evidence of Title, Copies of Contracts (and closing statements) and Deeds, Copy of Survey, and (if a development assemblage) detailed Tax Map outlining Fee owned properties, air rights and inclusionary air rights;
Details and terms of the current debt on the property and whether you are planning to pay it off with the Mezzanine and/or the Senior loan; full line item breakdown of land cost, closing costs and tenant buyouts; Entity Structure and Organizational Chart; Detailed Proforma and Construction Budget; 5 year excel proforma required and a corresponding quarterly draw schedule Detailed Construction Timeline and GANT Chart from your Construction Company depicting a minimum of 24 months for the Construction period; Letter from Construction Company explaining basis for Construction Timeline and Budget together with description of experience and qualifications; Provide a detailed list of approvals (and all documentation from the appropriate agencies) needed to build the building, including building permits, environmental reports, certification of occupancy, etc. and the expected dates including the agency providing the approval. Executed contracts for any air rights purchases; Copies of all Construction Permits, GMP contract and completion guarantee, final construction plans.
We need to know the purpose of each permit, what agency it will be procured from and the expected timeline for each permit. We also need to attach a copy of the permits to the I526 template; Offering Plan and details of Submission to AG; schedule of sales commencement A detailed construction bid with schedule from a 3rd party General Contractor supporting your cost assumptions.
This would include a verification letter from the construction company affirming Hard Costs, Soft Costs, FFE, and A&E along with a Gantt chart timeline; Schematics, Unit Layouts, Floor plans, Construction Plans, Renderings and Drawings (Schematics and Conceptual Plans needed at the onset of the Raise and Final Renderings required prior to Funding.
Bios of the Architect of Record; Zoning Opinion from a respected Zoning Attorney and Massing Studies from Architect; Environmental Studies Phase I and II Appraisal of Property from an authorized independent appraisal firm Plans for Loan Repayment supported by proper documentation
If all the above is provided and our analysis concludes the project is a great investment opportunity we start preparing the business plan and offering documents for the project and are ready to offer it to foreign investors.