One of the unique services that DealPoint Merrill has to offer is the Due Diligence and Risk Analysis on a target property or its assets. We define our Due Diligence Services as the physical inspection of a property in respect to its physical attributes and condition via a structural report completed by a qualified engineer and its operation characteristics as evaluated by members of DealPoint Merrill commercial staff of qualified analysts. We customize the scope of our Due Diligence and Risk Analysis best suited with our client’s interests. Although the number of vast verities of our Due Diligence services is broad, the core services include:
- Project feasibility studies
- Project status review and analysis
- Property appraisals
- Portfolio risk and valuation
- Highest and best use studies
- Financial & market analysis, projection and predictive yield forecasting
- Property and market inspections
- Legal documentation studies
- Soil & Environmental studies
- CAM reconciliations
- Financial forecasting
In our role as trusted advisors, DealPoint Merrill has consistently demonstrated an ability to add to our clients’ capital allocation decisions and increase insight into future strategic risks in order to mitigate investment losses. DealPoint Merrill has demonstrated a strong corporate commitment to technology and has developed state of the art information systems include our Live Online DMS (Document Management System) to provide our clients with up to date information. The DMS system enable our clients to view and download portfolio and asset risk ratings, status report, due diligence documents, appraisals and feasibility studies On-line via a secured TMGC Portal Surveillance Program. Our abstract documents load deal information into database and build projection/valuation models for on-going asset management and risk rating.
Risk Reporting enables our clients to execute decisions. Our risk rating analysis of market and operational risks assists in the determination of the need to hold and/or acquire real estate and other commercial properties that affect value and or potential returns. DealPoint Merrill commercial risk rating services are provided within the scope of asset management or as a stand along service.
Through our financial analysis and Projection:
- Compliance with required Property financial statement delivery is monitored and enforced
- Property financial statements are reviewed and compared against previous period performance, approved budge and underwriting.
- Review and analysis is focused on looking for trends (positive or negative), large variance among comparables, and pre-cursors of potential problems in the future.
- Financial information is added to internal projection/valuation model as part of continually tracking actual performance and projecting future performance.
- Continues market tracking and implementation into affects on potential asset performance is monitored.
Some of the Project Status Review and Analysis consist of:
- Rent rolls, manager’s reports and leasing reports analyzed and discussed with clients, representatives, and leasing agents.
- Sale reports (on for-sale projects) are tracked and sales contracts are reviewed to confirm compliance with loan documentation requirements.
- Sales pace, absorption and marketing strategy (on for-sale projects) are conducted monthly to maximize revenue.
- Review all construction/renovation draws for the purpose of tracking actual spending against approved budge.
- Analyze constructions/renovation reports to monitor construction progress; discuss issues with construction consultants.
- Keep apprised of market development and relevant market data.
The disposition stage may include:
- Monitor and analyze individual property markets to determine and ensure optimal disposition timing.
- Conduct formal broker selection process.
- Negotiate sales contracts.
- Perform analysis of proposed sale and obtain approval from DealPoint Merrill Asset Management through formal memo process.
- Facilitate closing process and review final closing statements.