| All real estate securitization transactions begin at
Stanger with our gaining a comprehensive knowledge of
our client’s properties. We call this process our
"Property Level Analysis." Stanger personnel
are "on the ground" at each asset and, through
typical real estate appraisal techniques, develop our
own twelve-month-forward operating budget and ten-year
projection for a discounted cash flow analysis. Demographics,
market analysis, and lease analysis are key factors.
Then, Stanger reviews client pro formas and projections
with special attention to non-recurring items, the treatment
of capital expenditures, repairs and maintenance assumptions,
tenant improvements and leasing commissions, lease turnovers
and re-lease rates. We generate a "normalized"
pro forma and projections for purposes of creating the
placement document which is provided the prospect who
may be a buyer, merger candidate, lender or joint venture
partner. In real estate equity securitizations, our
usual financial presentation fits the format suitable
for 8-K historic financials, especially when dealing
with publicly traded real estate acquirors.
Property value estimation is based on direct capitalization
and discounted cash flow methods calculated on both
a free-and-clear and leveraged basis. Sales comparable
data and actual transaction prices from individual property
and bulk portfolio sales are also developed as available
and appropriate.
In connection with mergers, sales of property, and
financings over the past five years, Stanger has valued
more than $20 billion of real estate assets, including
office, industrial, apartment, mini-storage, retail,
hotel, assisted living, and subsidized housing.
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