Building tangible value

The real estate industry provides the built-space that houses us and provides the retail, commercial and industrial facilities our economy requires. Our Real Estate Modeling practice is built to handle the needs of developers from pre-transaction project feasibility analysis to post-transaction reporting.

R eal estate has changed. An industry once dominated by low-cost capital and bricks-and-mortar square footage is becoming more flexible, digital, and experience driven. Investors, developers, occupiers, and operators must adapt their business models to account for the evolving ways people interact with the built environment. Our Real Estate Modeling practice is designed to meet these requirements. Here is how we help.

“The major fortunes in America have been made in land.”

– John D. Rockefeller

Performing Financial Feasibility

Feasibility analysis is a critical component of any development project. We work with developers to build highly dynamic cash flow models specifically designed to accommodate changes in key assumptions such as land acquisition cost, permitting, interest rates, building materials, labor, absorption rates, sales prices, cap rates, and waterfall structures.

Evaluating Underwriting Opportunities

Lenders and investors need to accurately assess the risk and reward inherent in real estate deals. We help investors do so by modeling debt coverage, assessing collateral quality, stress testing model assumptions, and determining return metrics such as IRR and NPV, so they can make informed investment decisions.

Optimizing Capital Structure

The capital structure of a project is an important aspect of a financing decision as it has a direct impact on the returns the project generates. We help developers determine the optimal capital structure that will ensure alignment of incentives between parties involved in the transaction. 

Scenario Planning

Markets operate in cycles. Investors and developers need to ensure that their projects are able to withstand the peaks and valleys that is the nature of this industry. We help clients simulate market conditions by analyzing macroeconomic and lease-level drivers and stress test debt capacity to ratios to ensure that lender agreements are not violated.

Crafting Investor Package & Roadshow Materials

We help developers craft compelling investor packages that reflect the opportunity and their capabilities, so they can communicate their value proposition effectively, increase the likelihood of securing funding, and see their project through to realization.

Reporting & Transaction Functions

Post-transaction, the task of any developer is to maintain project timelines and budget as set out in the forecast. This is to not only ensure that the project meets return objectives, but to also avoid cost overruns and prevent violation of lender agreements. We help developers keep on track by providing back-office support such as accounting, reporting, and KPI analytics.