Related to commercial and residential properties in our target markets, MAC Advisors provides the following services to investors, institutions, and high net worth individuals:
- Asset identification
- Property due diligence
- Financial modeling
- Price and term negotiation
- Selection and oversight of construction contractors
- Selection and oversight of property managers
Asset identification: Based on detailed criteria given to us by each client, MAC Advisors develops a list of candidate properties in the target geographic market. Each property is previewed by MAC Advisors and we obtain key facts and "color" from each listing agent or owner. The properties reviewed includes real estate available through the major multiple listing services as well as from MAC Advisors' network of property owners and developers. We then develop summary profile information on each property for the client, including the key building, land, and financial characteristics (for commercial & investment properties) to facilitate comparison.
Property due diligence: After receiving client feedback regarding the profiled properties, MAC Advisors performs an in-depth due diligence on the top candidates. The due diligence review and analysis typically includes the following activities:
- Building condition assessment
- Property survey and zoning information
- Property improvement history
- Historical financial and individual lease review (commercial & investment)
- Testing the past and projected operating statements with comparable properties and past experience (commercial & investment)
- Reviewing third party engineering and environmental assessments (commercial & investment)
- Examining current and planned development activities of neighboring properties in the immediate area
Financial modeling: We perform an in-depth comparable property analysis using a proprietary valuation methodology developed by MAC Advisors principals, drawing on over 20 years of property valuation experience. There is a strong focus on using only the most relevant properties in the same or highly analogous geographies, understanding the key valuation drivers that exist in the market, and properly normalizing the data for the most important additive or negative factors possessed by each comparable property. For commercial and investment properties, MAC Advisors performs in depth expense and revenue analysis, examining each line item going back multiple years, and analyzing likely future levels based on property and market (competitive) conditions.
Price and term negotiation: After we establish a valuation range for the property, MAC Advisors and the client jointly determine the target or goal price and terms for the property. The expected discounts to asking price (or the level of premium for underpriced properties) that we forecast are based on multiple factors, including competitive dynamics, length of time exposed to the market, and current property condition. MAC Advisors' principals draw upon their decades of collective negotiation experience and understanding of the particular property situation to negotiate the very best price and terms.
Selection and oversight of construction contractors: MAC Advisors determines the key criteria of the client related to construction along the quality vs. price vs. time axes, i.e., which categories are the most important and match the criteria with the most applicable contractors. We evaluate contractors on behalf of the client in order to be sure that high performance standards exist across the most important elements, i.e., proven track record with quality construction work done on time and on budget, good reporting and technology, strong risk management practices, transparency, and accessibility. MAC Advisors works with the client and the lead contractor to arrive at an agreed-upon month-by-month budget and will also determine if the contractors can meet the time frames. When construction has commenced, we coordinate or conduct meetings on the client's behalf to ensure that pricing, terms, reporting, and other key elements meet client standards.
Selection and oversight of property managers: MAC Advisors evaluates the client's key criteria related to property management along the price vs. service breadth and experience axes, i.e., which categories are the most important and match the criteria with the most applicable property management and leasing agents. We then assess property managers on behalf of the client in order to be sure that high performance standards exist across the most important elements, i.e., proven track record with managing and leasing properties, good reporting and technology, strong risk management practices, valuation knowledge, contractor skills and service quality, transparency, and accessibility. MAC Advisors works with the client to arrive at an agreed-upon annual budget and then monitors the performance of the managers and leasing agents on a regular basis. We will also determine if the time frames can be met by the managing and leasing agents, and will coordinate or conduct meetings on client's behalf so that pricing, terms, reporting, and other key aspects meet the standards specified by the client.