The difference between passing on a high-risk property investment and a successful transaction can often come down to this very due diligence, the scope of which needs to appropriately reflect the term of ownership and business objectives of the transaction(s). Providing the customer segregated cost tables can help aggregate immediate and long-term reserve tables according to specific underwriting requirement or tenant improvement expense allocations, for example. The minute level of detail and planning needed means that the best assessment insights are often the least obvious and involve the most communication between the customer and the due diligence consultant.
To read the full article on equity PCA reports for high-risk transactions on GlobeSt, please click here.