Strategy & Transactions | Real Estate | FTI Consulting
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Strategy & Transactions

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Public and private organizations alike need a trusted advisor with an in-depth understanding of real estate. When organizations need to make critical equity and debt investment decisions or look to preserve and enhance asset value, they rely on FTI Consulting for deep industry expertise, unbiased analysis and unparalleled support for their transaction and operations strategies.

How We Help

Transactional Strategy & Due Diligence

Global public and private real estate companies, including owners and developers, REITs, financial institutions, private equity funds, insurance companies, family offices, governments, as well as origination and securitization lenders, seek out FTI Consulting to provide our unmatched expertise in:

  • Transactional strategy: Transaction structuring and development of a capital markets strategy, offering memoranda and investment books, historical and prospective cash flows, and strategic observations and operational consulting
  • Due diligence: Corporate-level merger and acquisition due diligence, property and entity-level due diligence, working capital reviews, site inspections and tenant interviews, market assessments, property, portfolio and enterprise valuations, expense recovery analyses (e.g., operating expenses, real estate taxes, capital improvements, CPI escalations, porters’ wages, HVAC, etc.), and real estate tax assessment review
  • Financial analysis for portfolios and single assets: Financial statements, operating statements and rent rolls
  • Financial modeling: Asset- and portfolio-level cash flow and DCF; JV and promote modeling for IRR and return analyses and track records; public-to-public, private-to-public and public-to-private pro forma modeling; development deal pro formas (highest and best use analyses); sensitivity analyses (pre- and post-tax); contracts, agreements, site inspections and closing statements
  • Loans, mortgages and servicing histories
  • REIT compliance
  • Tax attributes, including opportunity zones

Valuation Services

Clients with properties ranging from single assets to major national real estate portfolios benefit from our in-depth understanding of real estate values and market dynamics. We assist in underwriting property cash flows for disposition or providing due diligence for third-party purchasers.

Our services include:

  • Valuations financing, corporate planning, and mergers and acquisitions
  • Valuations for financial reporting — ASC 820 (formerly FAS 157) and International Financial Reporting Standards
  • Partial interest valuations
  • Real property appraisal and portfolio valuations and market leasing assumption analyses
  • Debt valuation
  • Purchase price allocations — ASC 805 (formerly FAS 141)
  • Appraisal management and review
  • Ad valorem tax analyses
  • Market and marketability studies
  • Feasibility and highest and best-use studies
  • Financial modeling
  • Expert valuation testimony and litigation support

Operations Optimization

To maximize the contribution of their operating platform to their bottom line, we help clients align business strategy, organization and management with day-to-day work processes and reporting.

Strategic planning services include:

  • Interim and crisis management teams
  • Restructuring and business plan development
  • M&A integration planning
  • Workplace efficiency and location analyses
  • Corporate communications and public relations
  • Brand strategies

Implementation services include:

  • Cost analyses and benchmarking
  • Workflow and systems analysis
  • Process improvement and systems integration
  • Procurement strategies and vendor relations
  • Operations and capital budgeting
  • Compliance and reporting
  • Transaction management and tax planning
  • Employee retention and executive compensation
  • Financial outsourcing

Portfolio Optimization

A periodic program of portfolio optimization includes an evaluation of investment goals, risk management and investment strategies needed to secure and maximize short- and long-term returns to investors. We help clients to identify core and non-core assets, and to evaluate and select alternative investment and tax-advantaged strategies to meet and exceed their goals and objectives.

Services include:

  • Strategic planning
  • Performance benchmarking
  • Asset classes and concentrations
  • Long- and short-term hold/sell analysis
  • Acquisition and disposition strategies
  • Transaction strategies and tax planning
  • Due diligence and underwriting
  • Income and expense analyses
  • Valuation/appraisal — mark-to-market
  • Opportunity and risk assessment
  • Forensic investigations
  • Implementation
  • Financial reporting and interim management
  • Data systems management
  • Transaction and project management oversight
  • Asset repositioning strategies
  • Capital planning and budgeting
  • Broker and management due diligence and negotiation

Development Advisory

Clients turn to our experts to help them determine the key drivers for creating maximum project value. We help you manage relationships among investors, developers and public sector stakeholders to create and execute complex development projects. In addition, we help you access capital, and articulate the economic and business benefits of projects to satisfy investor and regulatory requirements.

Services include:

  • Strategy: Highest and best use, land use, economic and community development, public benefits and capitalization, and feasibility
  • Project program and public policy review: Market and financial feasibility, investment analyses, and transaction support
  • Due diligence and underwriting: Valuation and appraisal, economic and fiscal impact analyses, public/private partnership structures, project finance planning, technical reports, and implementation
  • RFP responses: Construction management oversight, outsourced accounting and tax analyses, regulatory compliance

Site Selection & Incentive Negotiation

We utilize a quantitative and qualitative approach that aligns with clients’ business requirements and key objectives to communities and locations that meet their long-term needs. By effectively marketing a client’s organization as part of the site selection and incentive negotiation processes, we help them obtain maximum public incentives and tax credit benefits.

Services include:

  • Business needs assessment
  • Location screening
  • Cost accounting and financial modeling
  • Field investigation and validation
  • Incentive negotiations and transaction management

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