When it comes to due diligence, commercial real estate properties are a completely different animal from residential properties in regards to assessing value. That may seem like stating the obvious, but it is easy to overlook the many details that come into play.

For commercial real estate, value is determined in an inverse proportion to the degree of risk inherent to the continuance and stability of the income stream from the property. And of all the commercial property types, perhaps none is more complex in evaluation than a multi-tenant property, either office or retail.

The function of due diligence is to verify, verify, verify.
One of the first steps in your due diligence checklist should be the tenants of your potential investment real estate property.

Comprehensive due diligence services are Investment Analytic Group’s specialty. The IAG team has performed due diligence on commercial real estate valued at more than $1.2 billion including retail, office, industrial, and multi-family properties across the United States. We guide the process, keep clients involved as much as they prefer and, most importantly, communicate with you every step of the way. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction and quality due diligence contributes to superior returns. Whether analyzing office, retail, flex, industrial or multi-family properties, a thorough evaluation in the beginning helps the investor realize projected returns.

Tenants
Review and confirm the terms of all leases, paying particular attention to co-tenancy clauses, which are common in retail properties. These allow retailers to reduce the base rent, eliminate base rent and pay percentage rent based on sales, or terminate a lease when an anchor tenant or another identified tenant exits the property. Other items to take note of include “early outs,” which permit tenants to terminate leases in advance of normal termination dates, downsizing rights that allow tenants to reduce the size of the leased premises, tenant bankruptcies, and claims by a tenant against the landlord.

Require estoppel certificates from each tenant. This item usually is subject to negotiation between the seller and buyer as to the number of estoppel certificates required and, if less than all, from which tenants (anchors, occupants of more than a certain number of square feet). It also will indicate whether the seller is in default.

About Investment Analytics Group
Established in December 2006, 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 committed to registered representatives and financial advisors – and to the established relationship you have with your clients. We believe that mitigating an investment’s downside and seeking the best possible solution through a proactive approach, rather than a reactive approach is the key to a successful outcome. At IAG we can help by offering the following services:

* Lease administration/audits
* Financial modeling and repositioning strategies
* Property operations/asset management
* Accurate budgeting and budget reviews
* Continuous communication and efficient operations
* Disposition services
* Lease, ground lease, rent roll and operating analysis
* Post acquisition value creation and revenue/NOI maximization strategies
* Optimization of capital structure to include debt equity and hybrid financing
* Ownership structure analysis for all types of transactions including REIT, Tenant in Common (TIC), joint venture, and other single purpose entity structures

We see the big picture and we are your partner. At IAG, we can help maximize the overall performance of properties by bringing knowledge and experience in property management, leasing, lease administration, acquisitions, and due diligence, enabling us to develop and implement ownership solutions to achieve the objectives in operating and leasing property.

If you have a distressed real estate investment property or just want us to look at the performance of your property please contact us at your earliest convenience.

About Investment Analytics Group
Established in December 2006, 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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At Investment Analytics Group (IAG), we understand that some REO (real estate owned) departments are overworked and understaffed. We understand the sense of urgency to move toward disposition. However, we also recognize that proper asset management preserves equity.

There are inherent REO complexities which include the risk exposure of non-performing assets and the potential high costs associated with holding REO properties. More importantly, at IAG we understand how all of this impacts operations and the financial picture – market-to-market and property-to-property. Our focus is to help you craft a strategic action plan that meets your time requirements, which could result in minimized losses and a quicker sale when the asset has been positioned appropriately. Options to examine include repositioning strategies, capital improvements, lease-up activities, improving operational efficiencies, refinancing debt, or best positioning the asset for optimal sale in a down market. IAG will use its experience and understand of market variables to recognize and derive a property’s potential.

About Investment Analytics Group
Established in December 2006, 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’s (IAG) professional and experienced staff is devoted to the needs of high-net-worth and sophisticated investors and buyers seeking real property as their target investment. I know a pitch or a line you have probably heard from numerous companies, but what sets IAG apart from others is the dedication to establishing long-term relationships with clients, servicing a diversity of real property categories, and managing an asset transaction from start to finish with superior experience. Our number one goal is to build trust with every one of our clients first, and leverage that trust to grow those long-term relationships and deliver tangible results.

About Investment Analytics Group
Established in December 2006, 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) can provide both transitional advisory services on a short-term engagement, as well as ongoing asset management following the transition period of your commercial real estate asset. Let IAG put our product knowledge and expertise to work for you and protect your real estate investment.

During economic downturns, owners and investors are tempted to make shortsighted cost-cutting decisions regarding the maintenance of vacant spaces or properties, often resulting in calamity. This is especially true in the fall, the ideal time to prepare for the onslaught of winter and to protect the value of your real estate by making repairs that may be been overlooked during the spring and summer.

The list of concerns regarding vacant buildings is extensive. There are the obvious problems such as frozen pipes and pest infestation. There is also a host of less obvious issues that require periodic professional monitoring to protect asset value. Following are a few of these issues:

* Mechanical, electrical and plumbing (MEP) system failures
* Building envelope damage (roofs, windows, etc.)
* Fire-protection equipment problems
* Building code certifications (fire extinguishers, RPZ, etc.)
* Life/safety equipment problems (failure of emergency lights and exit signs)
* Vandalism and theft
* Humidification problems resulting in mold remediation
* Infiltration of cold air that increases utility costs
* Local municipality intervention due to building and ground problems

The reality is that the cost of properly maintaining your vacant assets before an incident is a fraction of what it may cost to repair it after damage has occurred and can be measured both in dollars and human capital. Dealing properly with vacancies by utilizing the expertise of an experienced and skilled partner dramatically decreases the possibility of property calamities.

About Investment Analytics Group
Established in December 2006, 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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An asset that is not generating an expected or necessary return is considered an underperforming asset, and is not exactly going to give you nights of peaceful sleep. While the asset may produce income for the company or person possessing it, the income may not be sufficient and is certainly less than expected causing even more restless nights.

If you have an underperforming asset, the team at Investment Analytics Group (IAG) can assist in finding the most profitable and sensible solution to your underperforming asset. Some possibilities that we will proactively engage in include:
– Avoiding lender liability suits. We will assist in the negotiation of a pre-workout agreement to minimize risks that can arise due to misunderstood verbal statements made in workout negotiations. Often times institutions find themselves the victims of claims that oral agreements, representations or waivers made in the course of a workout entitle the borrower to rights or damages never contemplated by the lender upon entering workout negotiations.
– Analyzing and summarizing all relevant information on the loan, the borrower, the collateral and relevant documentation and history. In addition to gathering all loan documents, promissory notes, guarantees, evidence of advances and notices, a complete written history of the loan will be prepared including the borrower’s financial statements, tax returns, litigation history, and credit rating.
– Working with your legal counsel, Investment Analytics Group will work with your in-house legal department or outside counsel to protect information gathered from being used as evidence in any future litigation.
– Determining the value of the project or property. IAG’s property valuations include: DCF modeling, NOI analysis, cash flow projections, risk and return analysis, occupancy cost and marketing opportunity analysis, budgeting updates and reconciliations, and cap structure evaluation. We also take a close look at the project viability, including non-financial factors such as the debtor’s track record, integrity, character, and business planning ability.
– Documenting the transaction completely. Once negotiations have resulted in a restructuring or workout, all aspects of the agreement will be thoroughly and fully documented.

About Investment Analytics Group
Established in December 2006, 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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Do a Google search for Tenant-in-Common (TIC) & bankruptcy and you will definitely get more stories than you would have a year ago. The TIC industry has suffered some catastrophic blows and has left many TIC investors scrambling to figure out their next step. If you or your clients have distressed Tenant-in-Common (TIC) properties then you need to call or email Investment Analytics Group (IAG) to learn how IAG can help protect your client’s TIC real estate investment.

Investment Analytics Group (IAG) is committed to registered representatives and financial advisors – and to the established relationship you have with your clients. We believe that mitigating an investment’s downside and seeking the best possible solution through a proactive approach, rather than a reactive approach is the key to a successful outcome.
* Lease administration/audits
* Financial modeling and repositioning strategies
* Property operations/asset management”
* Accurate budgeting and budget reviews
* Continuous communication and efficient operations
* Disposition services
* Lease, ground lease, rent roll and operating analysis
* Post acquisition value creation and revenue/NOI maximization strategies
* Optimization of capital structure to include debt equity and hybrid financing
* Ownership structure analysis for all types of transactions including REIT, TIC, joint venture, and other single purpose entity structures

Investment Analytics Group (IAG) can help maximize the overall performance of properties by bringing knowledge and experience in property management, leasing, lease administration, acquisitions, and due diligence, enabling us to develop and implement ownership solutions to achieve the objectives in operating and leasing property. Call or email us today to learn how we can help.

About Investment Analytics Group
Established in December 2006, 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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While some commercial real estate investments are loosing value, the medical office sector has shown remarkable resilience. According to a recent report from Marcus & Millichap, the segment is holding up much better than other property types and this trend projects to continue.

Currently the nation spends $2 trillion on health care annually, by 2013 that number is projected to grow to $3 trillion. In-fact, medical expenses have increased by an average of 7.7% over the past 10 years and now make up 17% of GDP. This exponential growth has been fueled by the large amount of baby-boomers who are steadily increasing in age and by 2013 the number of people over 55 will have increased by 20%. As more people advance in age, their medical expenses will rise correspondingly, fueling demand for the medical office segment.

Another driver of demand has been the shift from “an impatient to outpatient focus”. This has been caused by the steep rise in costs associated with hospital construction. A single hospital bed is now estimated to cost $1 million, driving many new hospitals to house around only 100 beds compared to older hospitals featuring close to 800. This decrease in supply, coupled with an increase in demand from an aging populace, has created a large need for medical office space.

These trends are reflected in the industry’s employment numbers. While the rate of job growth has decreased, job growth itself is still positive. 50,000 jobs have been added this year and another 200,000 are projected to be added by years end. By 2013, 2.4 millions jobs are projected to be added to the sector.

Despite these positive indicators, vacancy is projected to rise. This is due to the economic climate which is forcing many to abstain from health care expenditures they previously would have made. All told, vacancy is projected to increase by 100 bps this year, reaching 12.4% and rents will decrease by roughly 2.7%.

This increase in vacancy should be seen as a possible opportunity for those considering investment. Unlike other sectors, medical office real estate is virtually guaranteed to see a future rise in value as our population ages and health costs increase. Furthermore, if you couple a medical office investment with a net lease structure, you can create a passive investment that will see real growth in the future. This is perfect for someone who wishes to take a less active role in property management but still see his property value escalate. The combination of higher demand, less space and higher employment make medical office real estate an attractive net lease investment for the future.

About Investment Analytics Group (IAG)
Investment Analytics Group (IAG) was established in December 2006 ago to provide 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. Our business model and services are not reactionary to what many other firms consider “opportunity” in this current distressed environment. For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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Though it may not seem so at first glance, land brokerage is a complex and multifaceted niche in the business of real estate. Unlike most improved property, land value analysis is complicated by the multitude of uses to which a given tract might be put. A land broker such as Investment Analytics Group (IAG) is very knowledgeable about local land ordinances, zoning and environmental issues. Land brokerage is a highly specialized niche in the real estate business and IAG is pleased to be an industry leader.

1. Farms and Ranches
The real estate agent or broker dealing in farm and ranch brokerage would need to develop a very unique skill set. Valuation and marketing of farms and ranches is vastly different than any other type of real estate. From crop rotation and weather cycles to over-grazing and water rights, there are a number of extremely important factors that determine the value of this type of property. Knowing local zoning and regulations for determining conversion uses would also be quite important.

2. Undeveloped Tracts of Land
Large tracts of undeveloped land, particularly those getting closer to the borders of fast-growing urban areas, represent a significant portion of land transfer transactions. Whether on the Buyer or Seller side of this type of transaction, a broad knowledge base in local business trends, employment, urban growth patterns, land use regulations and development costs would be critical. The ability to negotiate in the corporate environment would be important also.

3. Land in Transition or Early Development Stages
From closed military bases to tracts set aside for specific development purposes, again we find a need for specialized knowledge and skill sets on the part of the land broker. In many of these cases, the purpose or generally allowed purpose(s) of the tract are already decided. Knowledge in the economic viability of the approved uses and the costs of development would be required. Governmental and tax incentives play a role here also. The successful broker will have knowledge in these areas.

4. Subdivision and Lot Wholesaling
Many developers prefer to purchase an undeveloped tract, get the approvals, subdivide it and install utilities, roads and other infrastructure. They then use a land broker to wholesale the lots to builders for construction of homes and other facilities. A planned community concept might allow not only homes but limited shopping facilities and some hospital or other institutional uses. This land broker would need commercial and residential expertise as well as be able to market to builders.

5. Site Location and Assembling Parcels
This highly specialized niche would require the land broker to locate parcels for a specific buyer or purpose. Many times this requires negotiations with various owners to acquire enough adjacent land for the proposed project or development. An example would be a major retail chain using a land broker to acquire land from multiple sources on which to place a new store location.

About Investment Analytics Group (IAG)
Investment Analytics Group (IAG) was established in December 2006 ago to provide 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. Our business model and services are not reactionary to what many other firms consider “opportunity” in this current distressed environment. For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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Do you have concerns about your commercial real estate investment? Is it distressed? Underperforming? Giving you sleepless nights? Then you should contact Investment Analytics Group (IAG) to help give you some peace of mind. Whether you are engaged in a transaction of a single asset or an entire portfolio, IAG’s experienced team with strong financial, accounting and legal backgrounds can provide you with these great resources. Investment Analytics Group will ensure that financial records reconcile with historical performance and projections.

IAG also can:
– Audit operating statements and reconcile tenant billings to lease terms
– Analyze collection issues
– Conduct capital expenditure analysis
– Review expense trends and adjust for deferred maintenance
– Perform complete lease file review and default analysis
– Assess contract services and other operation costs

About Investment Analytics Group (IAG)
Investment Analytics Group (IAG) was established in December 2006 ago to provide 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. Our business model and services are not reactionary to what many other firms consider “opportunity” in this current distressed environment. For more information visit us at www.iagroupllc.com or contact us at 208.846.8476 or info@iagroupllc.com.

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