Due Diligence
ICS's team has the financial and operational expertise to conduct in-depth acquisition, financial, and disposition due diligence analysis and review. ICS works with some of the largest real estate owners, banks, funds, and REITs, providing due diligence services throughout the transaction cycle. ICS assists in raising capital, including preparing pitch decks, offering memorandums, equity, and loan request packages that include waterfall analysis and key investment metrics.
Financial & Operational Review
ICS begins the process by providing the seller and lender with a thorough, detailed checklist for both acquisitions and development honed through decades of property due diligence work. The client reviews the checklist and identifies the tasks they need ICS to complete.
Financial due diligence services may include the following:
- Financial:
- Historical Comparison
- YTD Review
- Budget
- Project timeline
- Operations
- Service Contracts
- Licenses and Permits
- Union Contracts
- Management Agreements
- Ground Leases / Air rights
- Insurance/Utilities
- Parking/Security
- Accounts Payable
- Work Orders
- Personal Property
- Certificates of Occupancy
Real Estate Taxes
- Leases
- Abstracts
- Options and Encumbrances
- Historical Occupancy
- Walk Through
- Rent Comp Review
- Leasing Commissions
- Parking Requirements
Financial Projections Including sensitivity analysis
- Physical and Environmental
- Property Conditions and Third-Party Reports
- Coordination of Site Visits
- Mortgages
- Loan Document Review and Abstraction
Additional Due Diligence Services
ICS prepares estoppel certificates and reviews seller estoppels prior to delivery to the tenant. We can also assist with preparing exhibits in purchase & sale agreements. ICS has extensive experience building all types of exhibits, including:
- List of Documents
- Security Deposits
- List of Service Agreements
- Outstanding Tenant Costs
- List of Personal Property
ICS can also review purchase & sale agreements and summarize any potential language issues that arise during due diligence, such as prorations and leasing cost liabilities.
Transaction Closings
ICS can assist with property and loan closings. Our transaction specialists prepare the closing statement and calculate all prorations and closing costs based upon the purchase & sale document. ICS reviews all supporting materials and delivers them to all parties involved in the transaction– the buyer, seller, lender, attorneys, and title company. We also update exhibits as necessary, such as construction and renovation budgets, lease documents, and distribute them to key personnel, including participating attorneys.
Strategic Planning & Analysis
The ICS team is comprised of commercial and multifamily real estate experts with extensive experience in every aspect of the commercial real estate industry, including acquisitions, dispositions, new construction, underwriting, valuation, and due diligence. From evaluating property level cash flow assumptions on an office building portfolio to reviewing the upside potential of acquiring a multifamily or mixed-use asset, ICS can support your firm’s strategic planning and analysis initiatives.
DCF Modeling
ICS has experience modeling many types of commercial properties, including office, retail, mobile home parks, multi-family, and industrial buildings. We’re also masters in CRE valuation-DCF software applications. Together, our software and commercial real estate expertise make us well-suited to take on even the most complex and difficult DCF modeling or valuation assignment.
Standardized Excel® Models
ICS works with a broad array of Excel® models to power transactions in every stage of the CRE lifecycle, from property development through disposition, and for creating detailed, precise debt and equity waterfall models. We offer models created specifically for each class of CRE assets, including office, retail, industrial, and several multifamily scenarios. ICS can also provide standardized models to assist with valuation and asset management and for creating and managing CRE funds.
Created by a team of veteran CRE professionals with extensive experience modeling all types of buildings, our models feature advanced, proven formulas that generate extremely accurate results and make sensitizing even the most complex assumptions and critical variables easy.
Custom Excel® Modeling
ICS provides custom Excel® modeling and analysis services for CRE lenders, developers, owners and investors. Our customized models incorporate advanced Excel® tools and visual basic commands and are built to our clients’ specifications. ICS’s customized Excel® models are comprehensive, user-friendly and scalable for any size project to facilitate critical asset and portfolio management decisions.
Our custom Excel® models can support a wide range of projects, including acquisition and development, equity waterfall and debt modeling at a fund or corporate level, while offering superior cash and asset management functionality. We can build a completely custom model for you from the ground up. Or, to save time and lower costs, we can start with one of our standard Excel models and customize it with the specific features and functionality you want. ICS can also provide customized reporting and analytics.
Property & Portfolio Valuation
ICS can provide value estimates and discounted cash flow models for all asset types to support fair value and investor reporting, and strategic decision making. We will also work with you to customize the format of reports and data for presentations to principals, investors, or other key stakeholders.
Portfolio Cash Flows
Whether you own two properties or 1,000, ICS can create models in Excel® or any other CRE software solutions that allow you to analyze precise sensitivities and evaluate performance.
UnderWriting
ICS possesses a diverse real estate investment and analysis skill set, making us uniquely qualified to provide the breadth of expertise necessary to assist throughout the underwriting process.
Capital Markets Surveillance
Our extensive experience in structured finance, CMBS and secondary markets enables ICS to provide unparalleled reconnaissance to our clients. The first step in our surveillance process is to educate our clients on the positions they may hold, then quickly and efficiently conduct mark-to-market and discount/premium yield analyses. This allows our clients to effectively understand and manage their positions and identify new opportunities within the marketplace.
Distressed Debt Analysis
ICS has helped our clients successfully navigate the complex and ever-evolving world of commercial real estate for over 25 years. Using our extensive experience in distressed debt and leveraging our relationships with banks’ special servicers and REO divisions, ICS provides our clients with the information and analyses they need to determine appropriate haircuts at any subordination level.
Custom Modeling
ICS has extensive experience creating discounted cash flow models for all types of commercial properties, including retail, office, multi-family, industrial and mixed use.
DCF Modeling
Our teams have years of experience modeling discounted cash flow using the most popular DCF software tools. We have done DCF modeling for all types and sizes of CRE portfolios, from the small and simple to the large and extremely complex. The practical, hands-on experience we gained in the process enables us to successfully complete any and every type of DCF modeling assignment, no matter how difficult or nuanced. Our DCF modeling services include creating, converting, updating and auditing models, as well as creating models with data from accounting or other financial systems.