![]() This section should include every risk related to the business, tax, accounting, and legality of the property. Risk FactorsĮvery commercial real estate deal has multiple risk factors. Include facts about the city, such as population and financial status in addition to commercial real estate market performance. Similar to the industry overview, the market overview gives geographic specific insight on the real estate market where your building is located. Briefly describe what the specific industry for your property type is like in today’s market. Industry OverviewĮvery commercial real estate industry is different, whether residential, retail or another niche. This table depicts the competitors in your market, where you stand against them, and each competing property’s financial information. ![]() This image below depicts the structure of the deal between investors, sponsors, asset management, and property management: The sponsor company that controls the investment entity.ĭescription of the asset management fees. The estimated preferred return, annually.Įstimations of IRR, net to investor members, and the multiple on invested capital. Price describing the total capital in debt and equity that will be raised for the all-in transaction. The exact price for which the property will be purchased. ![]() The investment summary section covers various subtopics, each of which has its own separate section and brief description.ĭescribes/includes where the commercial real estate property is located, when it was built, how large it is, any repairs it may need, and the current occupancy.ĭescribes where the property is located, when it was built, the size, any repairs it may need, and current occupancy figures. If the property is a retail center, show images of the different stores, the parking lot, and what visibility and access looks like from the street. For example, if it’s an apartment unit, add images of the interior, such as the kitchen and bathrooms. Photo GalleryĪfter describing the property’s physical location, insert multiple images of the actual commercial real estate property. Add images of the property’s location on a map, an aerial view of the site, and a second map highlighting important places (demand generators) near the property such as an airport, public transportation, restaurants and stores. Right after, we jump into the location of the commercial real estate asset. In simple terms, the acquiring entity is seeking capital and there’s a brief description of your investment company (which may control or be the acquiring entity), its mission, the deal you’re pitching, a detailed description of the executives’ industry experience, and finally, deal financing requirements. The Commercial Real Estate Offering Memorandum begins with an executive summary, which lays out the high-level. The following is a list and brief explanation of the different elements that go into putting a real estate OM together.
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