Consulting Case Studies
Home Builder Valuation:
We conducted market research to determine the appropriate revenue assumptions for a very large home builder and master planned community developer. In four weeks, we visited 100+ projects, created cash flows and value estimates for each asset, and provided additional input on product repositioning to increase the potential value.
We ran a successful consumer research program, including focus groups and more than 500 internet survey participants, to help a builder design the right community with the right community amenities and product segmentation.We estimated that we improved profitability by several million dollars by reducing expenditures the consumer wouldn't pay for and providing specific product and marketing recommendations.
We have provided all 5 levels of Feasibility Analysis for numerous clients on properties all over the country. We serve as an in-house market research team or as a second opinion. Our seasoned building executives are particularly adept at determining the appropriate specification levels and the most effective use of marketing dollars.
We have done many optimization studies in order to maximize profit. This includes defining the right product, the right density, and the right cost in order to maximize the net present value. Our strategic plan(s) also consider all of the steps needed to change product along with the local jurisdiction and timeline associated with change. Our results are realistic, actionable and profitable.
Market Feasibility for a Master Planned Community:
For a mothballed Master Planned Community, we addressed the challenge of the property’s location: miles from central core but with unique site characteristics. The project was in a distressed market, but one with long-term growth potential. Within three weeks, we provided insight on current and future finished lot supply and our expectations of when supply and demand would become more balanced.
On behalf of a Banking Group needing to restructure a very large revolving loan, our team conducted market feasibility, cash flows and valuation on more than 150 new home communities in 8 states. Our recommendations to maximize recovery of the loan were presented in 10 weeks, helped the Banking Group focus, and were the basis for the group’s restructuring strategy.
Bankruptcy Reorganization Plan:
We evaluated the bankruptcy reorganization plan of a private real estate company with over 50 commercial and residential real estate assets. In one week, we analyzed appraisals and provided expert local opinion on all major assets. Later, we refined our analysis by providing valuation and cash flow analysis for each asset. We built a detailed cash flow model incorporating different economic assumptions to estimate possible return scenarios.
Distressed Real Estate Investment Evaluation:
On behalf of an investor contemplating an equity injection in a land development and home building company, we provided pricing and absorption recommendations and forecasted market conditions and cash flows for 40+ future communities from our desktop, with significant information provided by the builder.
Bulk Land Sale:
On behalf of a large home builder and land developer, we provided a valuation recommendation of over 60 subdivisions in 23 master planned communities in 5 states. Our market research and cash flow model was provided to bidders for their use to expedite the bidding process. Our assignment was completed in less than 30 days.
Portfolio Review and SWOT Analysis:
We reviewed a multi-billion dollar portfolio in the Southeast, providing an asset and valuation review of these assets. We provided a summary of market health, price forecast, and potential strengths and weaknesses to consider regarding these investments. We completed this complex analysis in just three weeks.
Joint Venture Investment Assistance:
We provided pricing and absorption recommendations for 14 subdivisions to help two of our clients come to terms in less than 30 days.
Commercial and Residential Loan Valuation:
We assisted a Private Equity Group in their due diligence efforts in valuing a Regional Bank by visiting each property and then valuing the Bank’s portfolio of performing and non-performing loan assets. The assets included permanent and construction loans for commercial properties (Office, Industrial and Retail) as well as residential land development and home construction loans.
We reviewed all of the appraisals and cash flows for a $1 billion+ portfolio transaction. We included a summary of the strengths and weaknesses for each property as it relates to their financials, entitlement, segmentation, and price positioning. We provided this analysis in just three weeks.
Home Builder Valuation in Bankruptcy Court:
For an unsecured creditors committee, we visited and valued more than 100 new home communities to determine which communities had equity value.
Land Portfolio Valuation in Bankruptcy Court:
On behalf of the debtor and secured creditors, our team valued a multi-billion dollar portfolio of land holdings for use in negotiations with a judge and unsecured creditor’s committee.
Construction Loan Portfolio Valuation:
In less than two weeks, our team valued more than $600 million of construction loans for the acquirer of a bank, using our proprietary loan valuation model.
Construction Loan Portfolio Review:
We provided a range of land values on more than 300 construction loans by reviewing comps and interviewing brokers and appraisers for a bank’s internal analysis.
Ongoing Portfolio Review:
We are on retainer with several private equity firms who have become reluctant owners of very large portfolios, helping them maximize the return on each asset. We update market conditions and make suggestions each quarter.