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Christine Ziomek
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Nov. 8, 2011

Real Diligence CEO Presents Expert Seminar In Financial Due Diligence For Commercial Real Estate Acquisitions At Law Offices Of Greenbaum, Rowe, Smith & Davis LLP

ISELIN, N.J., Nov. 8, 2011 – David Tesler, Esq., the CEO of Real Diligence, LLC, recently presented an expert seminar entitled “Commercial Real Estate Acquisition: Financial Due Diligence” to an audience of attorneys at Greenbaum, Rowe, Smith & Davis LLP, of Iselin, N.J. Real Diligence, which is based in Lakewood, N.J., specializes in financial due diligence for commercial real estate acquisitions. The firm is part of Madison Commercial Real Estate Services (MCRES), an umbrella organization that offers an array of specialty services for the commercial real estate market nationwide.

In his seminar, Tesler focused on the role and value of financial due diligence at all points in the acquisition process, from pre-acquisition screening of a property to post-acquisition property management support. During acquisition, Tesler noted that due diligence is essential for:

  • rental income verification, including current and future base rent and miscellaneous income
  • CAM income and methodology review, to define all tenants’ accurate Pro Rata share of expenses
  • expense analysis, with records for every expense over the past 12 months and a four-year comparison
  • recovery analysis, to determine whether tenants are paying what they should be in rent

“As important as due diligence is during acquisition, it is often of equal importance post-acquisition,” said Tesler. “It makes sense to outsource the management and operation of commercial real estate. This ensures that a final rent roll is compiled, that all rent is being billed according to leases, and that CAM reconciliations and invoicing are accurate.”

Supplementing his talk with numerous case studies that illustrated his points, Tesler also noted the importance of lease abstracting as the foundation of financial due diligence. “Since most of a property’s financials emanate from the leases, it is critical that leases are reviewed and abstracted by professional lease experts,” he said. “CAM reimbursements can only be accurately calculated based on the abstracts (lease abstracting) and an analysis of expenses (financial due diligence).”

In addition to being the CEO of Real Diligence, David Tesler is the founder and CEO of LeaseProbe, LLC, a lease abstracting company also affiliated with MCRES. In 2008, LeaseProbe acquired Real Diligence. Prior to launching LeaseProbe, Tesler served in the New York offices of Skadden, Arps, Slate, Meager & Flom LLP and Jenkens & Gilchrist Parker Chapin, LLP. During that time, he represented clients in the acquisition and disposition of various types of commercial real estate. He also represented clients (both landlords and tenants) in commercial lease transactions and real estate finance/ refinance transaction. Tesler graduated with honors from Benjamin N. Cardozo School of Law in New York City. He was selected as an "Industry Leader" in 2010 by a major publication serving the real estate industry.

Madison Commercial Real Estate Services (MCRES), with more than $75 billion in transactions insured, offers an array of specialty services for the commercial real estate market nationwide. In addition to Real Diligence and Lease Probe, these include: Madison Title Agency, a nationwide title agency that handles searches, writes policies, manages transactions and provides closing and escrow services in all 50 states, as well as offering REO Solutions and Bulk Transaction Management Services; Madison SPECS, offering expert cost segregation studies; and Madison Exchange, one of the nation’s leading Qualified Intermediaries handling §1031 exchanges.

Greenbaum, Rowe, Smith & Davis has more than 100 attorneys in four main practice departments: Litigation; Real Estate; Corporate; and Tax, Trusts and Estates, and 19 practice areas offering complete legal services. The firm has offices located in Iselin and Roseland, New Jersey.


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