The Due Diligence Phase is the most critical part of any real estate development project.
We coordinate the team of professionals to address every significant aspect of the project.
- Analysis is required of the following site characteristics:
Zoning and Governmental Review
- Geotechnical conditions
- Environmental assessment
- Transportation systems
- Utility location and capacity
- In addition, a title search is conducted to document all easements and encumbrances.
- A detailed review of the local zoning ordinance is required to determine the uses, setbacks, height restrictions, parking ratios, and other factors required for the site in question.
In addition, the nature, timing, procedures, and costs of all permits, fees, and approvals must be obtained.
- The market comparables must be understood and documented to determine the probable income stream for the development.
Planning and Design
- Rental rates
- Escalation factors
- Budgeted expenses
- Tenant improvement allowances
- Sales projections
- Required amenities
- Preliminary site plans are reviewed to determine the rentable square feet which can be developed. This serves as the basis for preliminary cost estimates.
In addition, we will lead the team in exploring the appropriate value engineering alternatives to maximize the project's qualitative and quantitative efficiencies.
Financial Planning and Structure
- A Financial Plan for the project is prepared which establishes a debt and equity structure based upon the projected income stream and the budgeted construction and other costs anticipated for the project.
- Assuming acceptance of the results of the detailed review and analysis conducted during the Due Diligence Phase, Agreements and Contracts are negotiated and finalized by Crossgates, including:
- Debt and equity agreements
- Tenant lease
The site is Purchased and the development begins.