Contracted by buyer of 650,000 sq. ft. office bldg to abstract 110 leases, compare results to existing ARGUS® file, and present all reconciling items to buyer for negotiation of potential "credits" at closing.
Realogic’s responsibilities included:
Financial due diligence and ARGUS sensitivity completed on time. One of the reconciled items found $4 million of free rent for an anchor tenant that was not modeled in ARGUS.
Property Manager found deficient Letter of Credit documentation for a new property management assignment. Previous owner/manager's tracking system allowed expiration of large letter of credit. Item missed during due diligence. Eventual tenant default cost the building $3 million.
Tracking Letters of Credit added to lease administration process now being performed in ELLIPSIS as a safeguard against this type of oversight. All Letters of Credit expiration dates are now known for each tenant. Critical date reports highlighting such dates are received by onsite Property Manager via Lease Administration Agreement.
A top private equity fund needed due-diligence services on a cross section of a large FDIC pool. The fund was bidding to be a participant in a FDIC structured sale.
The portfolio consisted of both performing and non-performing loans spread across all asset classes and all parts of the nation. The client needed due-diligence on approximately 150 of the loans, originated by mostly small to medium-sized banks.
With limited information, Realogic:
"Our work product enabled our client to put together their best and final offer for the portfolio, and the quality of our data allowed them to apply macro level assumptions to smaller assets enabling our client to save time and due-diligence dollars.”