Real Estate Consulting/Evaluation

Ad Valorem Tax Appeal

An analysis of tax assessment methodology and comparable tax assessments to advocate the client’s position for the purpose of tax relief.  This service is typically conducted on a contingent fee basis, whereby compensation is a percentage of future tax savings.  An appraisal of the subject property can be made part of the assignment provided the fee for the appraisal is not contingent upon the outcome of the appeal.  This service is provided on a local basis.

Site/Property Inspections

Generally limited physical and market observations generated via an inspection of the property and interviews with area professionals.  Site inspections are preferred when the goal of the client is for a cursory overview of an asset and where evaluation is being handled in house.  Inspections return observations with regard to subject occupancy, deferred maintenance, market supply and demand, and typical leasing terms.  We have completed numerous site inspections across the eastern half of the United States.

Section 42 LIHTC Due Diligence

Involves an analysis of residential property to be developed or rehabilitated under Section 42 of the Federal Code.  Sponsors are provided with federal [and state] tax credits based on a percentage of qualified basis, which can then be sold to receive funds to help pay for development costs.  In return, the sponsor agrees to restrict rent and occupancy to a percentage of area median income.  Tax credit due diligence can address many of the issues faced by developers and syndicators, including compliance, strength of the development team, design, marketability, cash flow, and sources and uses of funds.  The principals of GRHCo have completed over 92 of these assignments in 25 states and have sponsored 22 projects in four states.

Market & Feasibility Studies

The delineation and investigation of a particular market to determine optimal use and the analysis of a specific use within a market to determine feasibility.  GRHCo will study a market and analyze existing and future supply and demand factors to determine potential uses within a market.  Moreover, GRHCo will analyze a proposed or existing use within a market to determine that it will meet specific investment criteria.

Investment Analysis

Deals with a broad range of custom-tailored analyses designed to meet the client’s objectives.  Examples include combining site inspections and loan file review to create a Derived Investment Value “DIV” report(s) for an individual or a portfolio of properties or loan(s).  Although market information may be gathered as part of the assignment, the client is ultimately responsible for the selection of the investment assumptions.  Depending upon the scope of the assignment, this service can be provided on a national basis.

Highest & Best Use Studies

Is an analysis to determine the 1) legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive use for which a site or property could be utilized.  For raw land, highest and best use analysis could propose subdivision or development with a specific use(s).  For improved property, a highest and best use study could reveal renovation, conversion, or redevelopment as the maximally productive use.  GRHCo provides this service on a local basis.

Cash Flow Forecasting/Analysis

Tests the reasonableness of income and expense assumptions used to develop stabilized or multi-year operating proforma income statements.  Comparable market information is researched to determine reasonable market rent, vacancy, and expense figures. Computer programs and sensitivity analysis aid in forecasting income and expense growth.  Depending on inspection requirements, this service is provided on a national basis.

Argus Lease-by-Lease Modeling

Typically involves financial programs such as Argus to model actual terms contained in the lease with regard to the timing of contract rent, overage rent, rent escalations, and operating expenses reimbursements.  Market information is used to determine reasonable re-leasing and expense assumptions.  Depending on inspection requirements, this service is provided on a national basis.