Due Diligence

 

After Milan’s initial underwriting, and a successful negotiation has led to favorable terms for the purchase, our acquisition department engages in due diligence. The following is a summary list of the due diligence responsibilities Milan assumes:

• Review all title records and surveys

• Evaluate all financial documents including historical and projected operating statements and budgets

• A complete examination of all leases and license agreements

• Study all vendor contracts and expenses of the property

• Inspections of all structural, mechanical, and other physical elements of a property

• Examine all environmental, geotechnical, and other reports affecting the site

• Evaluate all CC&Rs and other governing documents for the site

• Review all loan documents affecting the process of the purchase

• Generate financial models usually utilizing the Argus discounted cash flow program, illustrating the return expectations for the asset along with parameters and assumptions for those returns

• Provide additional due diligence analysis complete with opportunities, risks, game plans, and strategy

Additionally, Milan takes the initiative in performing tenant interviews, strategizing with well-respected leasing agents, and maintaining contact with the seller’s representatives.

 

 

Closing

 

Milan’s acquisitions team members bring to the table years of experience in negotiating the purchase and sale of commercial assets. Milan has a remarkable record of moving quickly through due diligence and generating concrete evidence for its principals, its clients, and also the sellers that bring all parties to a reasonable conclusion regarding the financial and physical aspects of a property.