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Due Diligence Services

Realogic’s team has the financial and operational expertise to conduct in-depth acquisition, financing and disposition due diligence analysis and review. Realogic works with some of the largest real estate owners, banks, funds and REITs, providing due diligence services throughout the transaction cycle. 

Financial & Operational Review

life-cycle-graphicRealogic uses an extensive checklist developed over decades of experience in property due diligence.

The process begins with a request list supplied to the Seller / Lender. The client then reviews the checklist and identifies the tasks required to meet their property due diligence needs.

The Realogic approach combines on-site presence with remote staffing from our Chicago and suburban Los Angeles offices.

Financial due diligence services may include, but are not limited to, the following categories:

  • Financial (Historical Comparison, YTD Review, Budget, GL Review)
  • Billing (Rent Roll Audit, Billing Statements, Recovery Audit, Accounts Receivable, Percentage Rent)
  • Operations (Service Contracts, Licenses and Permits, Union Contracts, Management Agreements, Ground Leases / Air rights, Insurance, Parking, Security, Accounts Payable, Work Orders, Utilities, Personal Property, Certificates of Occupancy)
  • Real Estate Taxes ( Historical, Future Projections, Appeals, Special Assessment)
  • Leases (Abstracts, Options and Encumbrances, Historical Occupancy, Walk Through, Tenant Improvements, Leasing Commissions, Parking Requirements, Tenant Correspondence, Credit Reviews)
  • Financial Projections (Argus Audit, Argus Updates)
  • Physical (property conditions report review, new third party reports and coordination of site visits)
  • Environmental (environmental report review, new third party reports and coordination of site visits)
  • Mortgages (existing loan documents review and abstraction)
  • Legal (estoppel certificate and contract exhibit preparation)

Lease Abstract

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Realogic has abstracted leases for some of the largest real estate transactions in history since first offering lease abstraction services for due diligence over 15 years ago. Whether abstracts are required for a single building or an entire portfolio, Realogic’s lease abstraction can be scaled to meet your needs.

Abstraction using client solution

The Realogic team has the expertise to abstract leases into virtually any desired format, including direct input into accounting software or Microsoft Excel/Word.

Abstraction using realogic abstract logo

Realogic's preferred software for due diligence lease abstraction is Realogic Abstract.

Developed by Realogic, this web-based software provides highly customizable abstracts and numerous other reports to facilitate due diligence decision-making in a real-time, interactive environment.

Upon closing, building and lease data from Realogic Abstract can be exported to accounting software (MRI, CTI, JDE, Yardi, etc) for immediate tenant billing without the needless re-keying of data. Clients also have the option to continue using Realogic Abstract for post-closing lease administration.

 

Legal Assistance

Anonymous-estoppel

Realogic prepares estoppel certificates for clients and reviews seller estoppels prior to delivery to the Tenant.

Realogic also assists with the preparation of exhibits in Purchase & Sale Agreements. For example, Realogic has extensive experience building exhibits of all types, including:

  • List of Documents
  • Security Deposits
  • List of Service Agreements
  • Outstanding Tenant Costs
  • List of Personal Property

Realogic can also review the Purchase & Sale Agreement and summarize any potential language issues as a result of findings discovered during Due Diligence (i.e. Prorations, Leasing Cost Liabilities).

 

Transaction Closings

Realogic offers assistance in the actual closing of properties and loans.

Transaction specialists prepare the closing statement and calculate all the prorations and closing costs according to the Purchase & Sale document.

All backup is reviewed by Realogic and the information is delivered to the buyer, seller, lender, attorneys and title company.  All wiring information and the flow of funds are coordinated between the parties and the title company.   

Any exhibit changes are updated and delivered to the attorneys, i.e. new lease documents.

Due Diligence-Post Closing

Realogic will transfer the due diligence work to the properties, as well as verify any discrepancies noted.

Abstract to Rent Roll Comparison

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A vital step in the evaluation process during Due Diligence includes comparing abstract data against the facts held within a Rent Roll.

  • Monthly recurring charges
  • Annual CAM, OPEX and Real Estate Taxes
  • TI repayments

 


Download the real estate due diligence and the closing process pdf

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