The fundamental building block of any Land Acquisition or Disposition effort is the Land Residual Analysis. Our dynamic process allows us to quickly determine the project’s feasibility and financial performance in a manner consistent with its end use. We implement a full service process that allows us to assess each component of the project by way of development costs, cost of capital, pertinent revenue models, all in a time based modeling platform.

We align our experience and expertise with the goals and desired outcome of our client to ensure the process is seamless. We independently look at the viability of a project through a discerning eye, providing our client with an objective analysis that can be used for internal and/or external purposes including sourcing capital.

Our in-depth experience provides our client the assurance that each component of the project has been accurately identified and incorporated accordingly. Our comprehensive model allows us to integrate different scenarios and highest and best use analyses to deliver our clients with the knowledge needed on how best to proceed

The financial modeling includes but is not limited to the following elements:

• Land Uses
  • Residential
  • Retail/Restaurant
  • Office
  • Industrial
  • Other
• Costs/Revenues broken out by uses (eg. Master Developer, Retail, Office, Restaurant, Residential, Industrial, etc.)
  • Costs (as applicable by use)
  • Softs (Indirects)
  • Softs (Ongoing Operating Costs)
  • Horizontal
  • Vertical
  • Revenue (i.e. sales revenues, lease rates, rental rates, etc.))
  • Forecasted Absorption Rate
  • Vacancy Factor
• Timing
  • All elements tied to the Project Schedule
    • Influenced by Phasing Strategy
    • Absorption Rate
    • Supply/Demand per Land Use
  • Financial Metrics/Results – Overall & broken out by Land Use
    • Total Revenue
    • Total Costs
    • Softs (Indirects) – Inc. Cost of Capital (Debt/Equity)
    • Directs
    • Net Cash Flow/Profit
    • Peak Cash Flow(s) (Various Intervals based on potential Phasing)
    • IRR (Levered/Unlevered)
    • NPV
    • Cash Multiple
    • Project Funding Sources/Total
    • Major Assumptions
    • Cash Flow Analysis
  • Gaming
    • Testing out various strategies/uses/timing to optimize financial returns and appropriate risk profiles

Our LRA/Profoma expertise is applied across all product types. We deliver a high-quality product within our client’s deadlines. At the end of the day we provide you with the information and analysis you need to make the appropriate investment decision.

To learn more with regards to these services, please contact Bob Garrison, Director of Consulting Services, at 949.398.8349 or by email at bgarrison@murowcm.com