Real Estate Due Diligence & Cash Flow Modelling
Kroll provides real estate due diligence, lease abstraction and ARGUS cash flow modeling to support confident acquisition decisions and portfolio performance analysis.
We complete financial due diligence to aid our clients in completing successful transactions and for other purposes. We complete cash flow modeling in ARGUS software and similar software packages to give our clients confidence in the financials, so they can make efficient decisions regarding their acquisitions and existing portfolios.
Lease Abstraction and Analysis
Our real estate due diligence group abstracts leases into Kroll’s functional centralized lease abstraction database or, if requested, directly into a client’s proprietary system. Specifically, our team will complete the following tasks:
- Generate lease abstracts itemizing critical financial and nonfinancial lease clauses
- Compare the accuracy of information contained in property rent rolls to corresponding data in the leases
- Prepare specific reports (e.g., rent reduction/termination rights, renewal options, premises restrictions, subordination/landlord liability and indemnification) to facilitate getting the information deemed important to the client in the due diligence process
- Convert the lease abstracts and related abstract reports to a PDF for submission to the client via email and/or an Excel file that can be uploaded to the client’s property accounting system
ARGUS Modeling
- Kroll real estate valuation professionals have extensive experience building and auditing ARGUS models. We can build a model from scratch based on our lease abstracts or audit an existing model to ensure accuracy regarding leases in place.
- Modeling auditing includes verification of base rental rates and escalations, lease expirations, option clauses, percent sales revenue, recovery pools and property denominators, and market leasing assumptions.
NOI Trend Analysis, Verification of Receivables and Cash Flow Sensitivity Analysis
- We work closely with clients to build customized models to help assess the reasonableness of financial forecasts. Our professionals identify historical trends in property-level revenues and expenses and provide comparisons to forecasted trends.
Stay Ahead with Kroll
Financial Mortgage Lending Appraisals
Kroll Real Estate Advisory Group provides an array of mortgage lending services, including asset valuation, as well as searches and surveys for verification and certification of compliance with various standards and regulations.
Right of Way Appraisal Services
Kroll Real Estate Advisory Group provides a full array of independent right of way appraisal services.
Cost Segregation
Cost segregation services offer companies the opportunity to maximize tax depreciation benefits related to the construction or acquisition of real estate and minimize the risk of audit exposure.
