Feasibility Study

Our due diligence starts with a full Feasibility Study. This report is based on, among other things, verifiable market information. With most projects, the owners simply need help selling – or marketing – their product. The first step in successfully doing so is determining how it stacks up to the competition. In some cases, the property's use must change in order to be competitive. Therefore, we pay close attention to market conditions as well as where the market is headed.

It may be that Fractional Ownership is the right choice for some owners, particularly in resort areas in which it is a more affordable alternative to buyers unwilling to take the financial risks of full ownership. We will help determine this during our due diligence phase and guide you in the process should a change of use be your best solution.
Phases of Feasibility Study

Comprehensive Market Analysis – similar to an appraisal but with added emphasis on alternative use possibilities, including a complete study of market conditions (tourism, real estate, and retail) for the immediate area and surrounding communities.
We will look extensively at product opportunities for retail and residential, paying close attention to what's missing or what other resort areas do successfully. Included will be at least one trip to the area for approximately 3 weeks.
A Summary Analysis Report, along with recommendations, will be provided. The purpose of this report is to provide an accurate picture of the project as it sits today as well as future opportunities. Verifiable  information will be necessary for potential  investors or lending sources and will be included. The property's highest value and best use plan will be determined at this point.
Timeline – depending on the amount of information provided by the client, this report generally takes about two to three months to complete, include the in-person visit to the area.
Business Plan – incorporates results from the Market Analysis to reflect the property's highest value and best use.
Used to evaluate the financial feasibility of a proposed program and guides recommended composition and phasing of the project to maximize financial returns consistent with anticipated goals.
The financial model defines the expected profitability and rate of return of a proposed project. Includes the following:

i.      Once all alternatives are considered, we prepare a proforma cash flow statement, which contains an estimate of the project's revenues, costs, and net cash flow before and after debt service.

ii.      We consider a project's flexibility to ensure we achieve the desired financial results both short- and long-term, since situations can change over time.

We will interpret the results of the analysis and its recommendations concerning project feasibility in the areas of timing, phasing, strategy, marketing program, and potential for joint venture or outright sale.

 

Consulting – Our Process and Best Practices

Our Process

Due Diligence – uncovers all aspects of a potential project. This includes those in the conceptual or developmental stage, or perhaps one that is facing difficulties (sometimes known as "work-outs").
In the case of a work-out, we evaluate options, determining whether a change-of-use or renovation of the property is beneficial. Perhaps new funding via joint venture partnerships, loans or an outright sale of the asset is the best option.
Site Inspection – usually takes two to three days and includes the following:
Qualifying the Location – proximity to major roads, towns, industry, residential neighborhoods, schools, hospitals, points of interest, nearby amenities, and other services.
Land – visual inspection to determine suitability for construction.
Review of Existing Improvements – we take a close look at the property, including the age and overall condition of the buildings to determine potential usefulness.  We consider:
How the buildings are positioned on the property and what is the visibility from nearby properties and roads?
How do these buildings look compared to others in the area?
Business Audit – in the case of a commercial property, we determine its overall condition by conducting an analysis to determine any issues or items that are missing or out-of-date. Recommendations will be made for improvements.

Development Plan – an extension of the Business Audit, designed to add incremental value to the project.  Includes a full financial breakdown of every aspect of project costs (construction, sales/marketing, and management projections) as well as cash flow. The plan will be posted in a secure area of the project website so that qualified investors or purchasers can view the document.

Client Conference – to further understand the client's goals and objectives and relay our findings. We will prepare a thorough brief, which usually takes one week to complete.

Regardless of the result, we are your partner in making your property work to your best advantage.

Creative Concepts

We go to great lengths to look at each project individually and provide a customized solution to suit your needs. This is best done with an in-depth Feasibility Study in which we look closely at market conditions and other factors before making a recommendation regarding your project, which may involve a hybrid concept.

Our approach involves fitting the right product to your unique situation. Our hybrid models maximize the property’s potential through efficiency, something everyone should be paying attention to in today’s market.

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