Madison Title Agency | Madison 1031 | LeaseProbe/Real Diligence | Madison SPECS

News & Notes
SUMMER 2017

Greeting and Introduction Presented by Arnon Wiener, Esq., CEO, LeaseProbe/Real Diligence
The Intricate Art of Forecasting NOI By Arnon Wiener, Esq., CEO, LeaseProbe/Real Diligence
We look at the challenges faced in forecasting NOI, such as assumptions vs. reality, current occupancy vs. market occupancy, and expenses that may or may not be represented correctly in an operating year.Read more...
 

a note from THE PRESIDENT
When it comes to financial due diligence on a real estate purchase, its importance can be well summed up by the idiom “Fools rush in where angels fear to tread”.

Especially in a hot market, when pricing is frothy, finding the proper balance between grabbing the next deal and spending the time to do a full investigation into its actual investment potential can be tricky.

Cutting too many corners and making too many assumptions can leave you exposed to mistakes and gray areas in the presented NOI of the deal, while spending too much time digging into the details can leave you hanging out to dry as the next savvy investor locks it up before you complete your research.

In the following pages, our experts at Madison point out some of the potential financial pitfalls that can catch an unwary investor, and discuss how to proactively avoid getting caught in such traps. Being armed with the due diligence tools to flush financial issues out, you can walk that tightrope to securing the next great deal.


Joe Rosenbaum, President
 
 
 
What’s in a Word? The Dollars Behind the Words By David I. Tesler, Esq., President, LeaseProbe/Real Diligence
We examine how a single sentence or two hidden in a Lease – when carefully considered within a due diligence content -- can impact the bottom line NOI, such as with a future abatement, a termination option, a landlord future obligation that has a monetary outcome (such as an HVAC replacement or a repainting in the 8th year of the Lease), a cap, etc Read more...
 
 
Is Comprehensive Financial Due Diligence in a Real Estate Acquisition Really a Must?
By Barbara Japha, Due Diligence Director,
LeaseProbe/Real Diligence

Just how important is deep financial due diligence when buying a property? Real Diligence reviews a few of the issues that can arise and surprise real estate investors during a financial due diligence review, whether it’s an investor with a few properties or a multi-million dollar real estate holding company with hundreds of assets. Read more...
 
 
How a Property Owner’s Hands Can Be Tied by Lease Restrictions By Rochel Parasol, Due Diligence Senior Manager, LeaseProbe/Real Diligence
Let’s consider how a real estate owner’s hands can be tied by various exclusive uses, landlord restrictions and radius restrictions when attempting to re-develop a parcel or an entire shopping center, and the puzzle a landlord might need to solve to find new tenants.
Read more...
 
 
The Challenges of Juggling Tenant Options
By Daniel Kasten, CPA, CFO, Madison Commercial Real Estate Services
Landlords face challenges to fill space in office buildings where many tenants have ROFO / ROFR’s, Contraction / Expansion Options, etc. We examine how a landlord might juggle vacant space to determine which Tenant has a first right to the space, second right to the space, etc. Read more...
 
 
Industry Spotlight – Focus on Arnon Wiener, Esq.
News and Notes talks with Arnon Wiener, Esq., CEO, LeaseProbe/Real Diligence
Read more...
 
 
A Potential Game Change for IRC §1031 Parking Arrangements
Bartell vs. CIR, 147 TC No. 5.
By Lee David Medinets, Esq., Chief Counsel, Madison Commercial Real Estate Services and its affiliates, including Madison 1031
One of the most important legal decisions affecting 1031 Exchanges in a long time, the recent Bartell case makes it possible to reasonably structure non-safe harbor reverse exchanges and construction exchanges.
Read more...
 
 
In Brief – Thurber v. Thurber, 2017 WL164480 (N.J. Super. Ct. App. Div. Jan. 17, 2017)
By Debra Smith, Esq., Associate General Counsel,
Madison Title Agency
This brief examines how closely the courts will analyze the parties’ conduct, even in the face of an admittedly forged document.
Read more...