At Investment Analytics Group (IAG), one of our main goals in representing property for lease or sale is to maximize the return on our clients’ investment or investments. Investment Analytics Group achieves this goal through our superior knowledge of local markets, our reputation as leaders in all of our local markets, and our unequalled ability to create innovative leasing strategies and marketing campaigns. For more information on our property representation/agency services contact us today to learn how we can help maximize your return on your investment.
You can reach Investment Analytics Group at www.iagroupllc.com or at 208.846.8476 or info@iagroupllc.comto find out how Investment Analytics Group can help you.

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At Investment Analytics Group (IAG), our team specialists gain a thorough understanding of every investors’ objectives and current assets. This helps to enable our team to help our clients develop the right property-level and portfolio strategy. All of our clients receive detailed analysis to support buy, hold and sell decisions and formulate real estate investment plans. Our team’s real-time market knowledge is combined with leading research as the basis of our advisory services. At Investment Analytics Group we view each transaction as a stepping stone toward a long-standing relationship, and we are thoroughly dedicated to being the best lifetime source of information and expertise to our clients. Clients utilize our advisory and consulting services to formulate buy-sell decisions, analyze markets, shape long-term portfolio strategies, evaluate development or redevelopment options and optimize returns during the holding period of properties.

Contact us today at www.iagroupllc.com or at 208.846.8476 or info@iagroupllc.comto find out how Investment Analytics Group can help make the most out of your real estate investments.

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Investment Analytics Group (IAG) was contacted by one of the nation’s largest real estate investment firms specializing in tenant-in-common (TIC) syndications to conduct property level due diligence services for the Center Point Business Park.

Center Point Business Park is a three-building, 173,710 square-foot office portfolio in Columbia, South Carolina. The tenants include Intel Corporation, Bell South Advertising and Publishing, Alltel Communications, ETC Deltacom, Sedgwick CMS, Lanier Worldwide, and All State Insurance.

Investment Analytics Group (IAG) was contacted by one of the nation’s largest real estate investment firms specializing in tenant-in-common (TIC) syndications to conduct property level due diligence services.

About Investment Analytics Group
Established in 2007, Investment Analytics Group (IAG) provides integrated commercial real estate advisory services to investors. Our core services include asset level due diligence, asset management, financial modeling, feasibility studies and other related advisory services.
For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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In the current economic times the importance of comprehensive due diligence has never been more crucial. Offers to purchase an asset are usually dependent on the results of due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are the buyer’s ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction.

Comprehensive due diligence services are Investment Analytic Group’s specialty. The IAG team has performed due diligence on commercial real estate valued at over $1.2 billion including retail, office, industrial, and multi-family properties across the U.S. We guide the process, keep clients involved as much as they prefer and, most importantly, communicate with you every step of the way.

Quality Due Diligence Contributes to Superior Returns
An investor’s return starts with a well-valued asset purchase. IAG’s business is to apply our expertise and knowledge to performing due diligence functions and assessing the underlying value of real estate assets for the client. Whether analyzing office, retail, flex, industrial or multi-family properties, a thorough evaluation in the beginning helps the investor realize projected returns.

Comprehensive Due Diligence Services
When buying commercial real estate it is paramount to consider:
■ Do the standard underwriting assumptions in the asset’s financial pro-forma accurately reflect the unique conditions of the asset?
■ Are there tenant issues percolating that could negatively impact the investment?
■ Have inspections and reviews been thorough enough to adequately budget a property’s operating and capital expenses?
■ Are there unsatisfied obligations under leases?

About Investment Analytics Group
Established in 2007, Investment Analytics Group (IAG) provides integrated commercial real estate advisory services to investors. Our core services include asset level due diligence, asset management, financial modeling, feasibility studies and other related advisory services.
For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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Investment Analytics Group (IAG) was contracted by a firm engaged in the tenant-in-common (TIC) and securitized real estate investment industry to perform certain due diligence functions. This multi-family property is fully leased by an area resort owner/operator for employee housing and located in Fairhope, Alabama.

About Investment Analytics Group
Established in 2007, Investment Analytics Group (IAG) provides integrated commercial real estate advisory services to investors. Our core services include asset level due diligence, asset management, financial modeling, feasibility studies and other related advisory services.
For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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The following article was written by Rhonda Garland, managing principal of Investment Analytics Group in Meridian, Idaho. Contact her at (208) 846-8476 or rgarland@iagroupllc.com.
The article appeared in the most current edition of CIRE (Commercial Investment Real Estate) magazine.

Today’s investment market requires a customized research approach

The current economy and the lack of available credit have created a new paradigm for commercial real estate investors. Many lenders are indicating that, in the future, an appraisal won’t be enough to obtain financing: Market feasibility studies will be a necessary part of the loan request package. Buyers can help to protect their immediate and long-term returns by conducting extra due diligence processes.

Today’s tight market conditions make it essential for investors to customize the many assumptions that drive the financial results shown in a property’s investment analysis. Gone are the days when investment analysis or financial pro forma could be calculated on standard assumptions such as 2 percent annual market rent growth, 75 percent tenant renewal probability, and 5 percent vacancy rate. Carefully customized analysis for a specific property is required to ensure the investment’s actual operating results most accurately reflect the projected returns.

“Feet on the Street” Approach
Once a property is under contract, buyers should first complete standard due diligence functions including review of title, historical financials, and leases. However, prudent buyers should perform additional due diligence practices to ensure that their initial investment analysis on the property is correct. To customize these assumptions to the specific asset, buyers should tour the property and the market.

“Feet on the street” due diligence is essential to determine what other properties make up the subject’s competitive set, gain firsthand knowledge about market or neighborhood anomalies that may influence assumptions, and assess any physical challenges that may impact the property’s desirability.

For example, firsthand observation of an office tenant’s suite may reveal extreme underutilization of the space, which in turn would affect the renewal probability assigned to the tenant. Or, a specific vacant suite may have an undesirable configuration, making it difficult to lease. This would affect the market rent assumption assigned to the space, could result in a higher tenant improvement cost, or perhaps both.

In another example, suppose a visit to a small retail center with several restaurants reveals very light customer traffic over the lunch and dinner hours. This analysis could lead to higher vacancy rate or credit loss assumptions and influence the entire investment decision. Firsthand observation may uncover specific traffic patterns that are problematic to the ingress and egress of the property. Or, an observer may notice that competing properties had recent façade or common area updates, rendering them a superior classification than the subject property. These factors may influence many assumptions about the investment including market rent increases or the assumed timing or necessity of similar capital investments required to ensure the property is competitive.

One-on-One Interaction
Various market data reports and subscription-based services that detail market rents, inventory, vacancy and absorption rates, and other fundamentals are good sources of information about a given market and helpful in completing an initial property analysis. However, the information and insight required in today’s market should not be derived from just these types of resources.

Interviewing tenants — representatives at both the local operational level as well as those in a corporate decision-making capacity when applicable — is critical to supplement the observations made during the property and market tour. Interviews should follow a well-crafted, detailed list of consistent questions for each tenant, with further questions customized to address specific observations made at the property and in the market as they may be applicable to individual tenants or all tenants.

Interviewers should have the ability to process information quickly and ask appropriate follow-up questions to ensure an accurate understanding of information provided versus jumping to erroneous conclusions. Interviewers also should be able to dig deeper for relevant information with a professional demeanor. Circumstances or conditions revealed by tenants could affect many of the aforementioned tangible assumptions and provide invaluable insight on intangible matters affecting the investment decision. For instance, tenant interviews have disclosed general dissatisfaction with a property either caused by recent area development, difficulties with commuting patterns, or changes in corporate structure affecting a tenant’s long-term plans. Tenants also have revealed ongoing issues with physical components of buildings or dissatisfaction with management as well as many other critical issues. Ultimately, tenants can be the best sources of information about themselves, the property, and the market.

Further research and discussion with area real estate professionals paired with the processes described above allow buyers the necessary data to support and perfect the investment analysis assumptions.

Property Condition Assessments
The more complicated a property’s physical structure, the less adequate a property condition report becomes. A very detailed inspection of a property’s physical and structural components can be crucial in more-complex transactions and often warrants some duplication of the lender’s PCR to adequately project both operating and capital expenses.

Equally important is contacting the vendors servicing the property for insight into issues from chronic maintenance problems to mechanical system failures. Selecting the appropriate personnel with extensive experience in construction and mechanical engineering in addition to a general understanding of commercial property operations is critical. Hiring a qualified professional can more than pay off when compared to the corrective costs that can be incurred on assets purchased solely relying on the PCR.

For instance, a PCR did not reveal a failing mechanical system in a 10-story office building. Uncovering the problem through a combination of inspection and research, which included gathering details from relevant vendors, resulted in a $1 million purchase price reduction to cover the cost of replacing the failing system. The PCR, which was conducted by a reputable national company, represented that the system was in good condition and reflected only typical annual maintenance costs and replacement after the expiration of the standard useful life.

In today’s market more than ever, specific due diligence processes are necessary to ensure investors make wise and profitable decisions. The time and expense required to go beyond the standard data found in appraisals, market reports, and PCRs are worth it, especially when compared to the costs incurred after purchasing an asset based on too-aggressive assumptions and too-low projected expenses.

© 2009 CCIM INSTITUTE. Reprinted with permission from Commercial Investment Real Estate magazine, Vol.XXVIII, No. 2.

About Investment Analytics Group
Established in 2007, Investment Analytics Group (IAG) provides integrated commercial real estate advisory services to investors. Our core services include asset level due diligence, asset management, financial modeling, feasibility studies and other related advisory services.
For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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Investment Analytics Group (IAG) is a national real estate service and advisory firm that specializes in creative, customized solutions and services that maximize returns for the commercial real estate investor. We are committed to providing the best professional services available to help build wealth and protect long-term capital. Our goal is to build trust, nurture relationships, live by our values, and provide our clients a tangible benefit from their real estate investments and our services.

Our Experience
IAG’s principals and management team possess a broad array of experience and competencies. They have more than 65 years combined experience in real property acquisitions, due diligence, capital acquisition, syndications, asset management, portfolio management, and asset operations. Together they hold CPM, CCIM, and Real Estate Broker credentials.

The Investment Analytics Group (IAG) team has experience in acquiring, analyzing, and managing all asset types and currently provides portfolio management for clients exceeding $85 million, and has analyzed deal flow for over $100 million in property. The team has previous operations experience with more than 20 million square feet of property nationwide.

About Investment Analytics Group
Established in 2007, Investment Analytics Group (IAG) provides integrated commercial real estate advisory services to investors. Our core services include asset level due diligence, asset management, financial modeling, feasibility studies and other related advisory services.
For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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Investment Analytics Group (IAG) Asset Management
Do you have a strategic plan or exit strategy for your commercial real estate investment?
If considering a sale, do you know the current value of your real estate asset? Is it positioned to realize maximum profit potential? When holding a property in your portfolio, are you maximizing revenue stream or is income left unrealized either through uncharged percentage rents, missed rent increases or inaccurate expense reimbursement calculations? If you answered yes to any of those questions you might want to consider using a qualified asset management program.

Financial Analysis, Transaction Modeling, Property and Portfolio Valuation
The IAG team brings an extensive real estate background and knowledge to the modeling/valuation process and has analyzed billions of dollars of transactions on all investment property classes. Our analysis helps our clients make critical management, valuation, acquisition, disposition, and financing decisions.

Whether it’s a single tenant building, office complex, retail property or apartment complex, IAG has the
experience and expertise to meet your analysis and valuation needs. We use industry standard software programs, Argus® DCF and Developer, MS Excel®, and proprietary methods and models for:
■ DCF modeling, updates and audits
■ NOI analysis
■ Cash flow projections
■ Risk and return analysis
■ Market opportunity analysis
■ Optimization of capital structure (debt, equity, hybrid financing)
■ Ownership structure analysis (TIC, REIT, joint venture)
■ Asset management support

About Investment Analytics Group
Established in 2007, Investment Analytics Group (IAG) provides integrated commercial real estate advisory services to investors. Our core services include asset level due diligence, asset management, financial modeling, feasibility studies and other related advisory services.
For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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