This service includes:
- Location/Facilities/Logistics Evaluation
- Lease vs. Buy Analysis
- Investment Advisory & Valuation Analysis
Wye Realty Advisors understands the multiple roles in the commercial real estate process, and believes that all parties can benefit from professional representation in complex transactions. Accordingly, we tailor our services to the client’s needs, including acquisitions advisory, effectively “buy side” representation in sourcing property opportunities and valuation for prospective purchasers. Co-incidentally, we recommend and provide tenant representation services, assisting occupiers in evaluating lease alternatives for their space needs.
These combined services are particularly pertinent to corporate real estate users whether seeking i) to purchase space for occupancy and wishing to avoid “over paying” entrepreneurial real estate owners and/or ii) procure the best landlord owned space alternative on competitive terms, including contributions to the tenant/occupiers preparation of its space for occupancy.
By employing market based analysis of valuations, replacement cost, and comparable sales/leases, including pricing/terms of historical transactions, Wye is able to leverage this information, present it in terms most demonstrative of the client’s objectives, and tailor a most favorable result to each of our customer’s real estate solutions.
Wye Realty Advisors represented Pettinaro Companies in the underwriting & analysis of its acquisition of a five property, 330,000sf portfolio of office, retail, and mixed use character, at a total purchase price of $110.5 million.
The client had the opportunity to acquire the portfolio in an “off-market” transaction, provided it could expedite underwriting and complete the offer process on a very-short-timeframe.
Wye Realty Advisors provided expedited underwriting and financial analysis of the properties, including constructing pro-forma operating statements for each individual property, with space-by-space analysis of over 120 leases/tenant spaces, comparison of in-place vs. market rents, and projections of lease-up and tenant fit-up costs of vacant suites.
In addition, Wye evaluated existing debt terms on to-be-assumed mortgages in conjunction with two of the five properties, and projected new debt terms/capacity for the remaining assets. With the above information, Wye prepared a portfolio compilation pro forma detailing how the aggregate portfolio would perform financially.
Finally, in conjunction with the client/purchaser’s operations & leasing team, Wye coordinated property tours and space-by-space inspections to validate the underlying assumptions used in the analysis.
Wye Realty Advisors performed valuable financial analysis on an expedited basis, facilitating client/purchaser’s ability to put-under-contract high quality, well leased, mixed-use assets in a high-barrier-to-entry market. Wye’s timely work enabled the client to control the assets in a negotiated transaction with the seller and keep the properties from being offered in the open market.
Our portfolio compilation work enabled the client to evaluate the financial performance of the aggregate investment, including capitalization with a combination of existing/assumed and new debt.
Wye Realty Advisors represented Liberty Property Trust in the acquisition of CenterPoint Intermodal Center, a two building 1.24 million SF industrial/distribution facility from MIRVAC Industrial Trust.
Wye Realty sourced the opportunity via research of distressed debt and Australian Stock Exchange, public company filings. As a result of this research, Liberty’s initial evaluation included a majority of MIRVAC assets, including Illinois, Wisconsin, and Michigan, totaling in excess of 4 million SF. The evaluation process eventually was broken down by pools of assets secured by various blanket mortgage financings. Then, individual assets were evaluated within each pool to determine individual asset values versus allocated mortgage proceeds, and the viability of individual asset sales.
Wye Realty conducted initial research which it shared with the client/purchaser, and arranged introductions to the Australian REIT seller and its North American advisor. Furthermore, Wye conducted the evaluation of debt pool analysis, portfolio segregation, and individual asset analysis.
The identification, research, and solicitation process ultimately resulted in the client/buyer’s ability to secure top tier assets from the seller’s balance sheet holdings, and the acquisition was conducted follow negotiations with the secured lender regarding the maturity defaulted mortgage loan. Liberty acquired the properties free and clear of mortgage debt via purchase from MIRVAC and repayment of the mortgage loan at a slight discount to total outstanding loan proceeds.
Wye Realty Advisors sourced highest quality institutional warehouse/distribution acquisition opportunity for its client, Liberty Property Trust, via extensive CMBS research and overseas market investigation. Wye’s understanding of the seller’s public market filing requirements, and our comprehensive understanding of real estate portfolio construction and pooled debt securitization enabled the client/buyer to identify and acquire highly desirable assets from the Australian REIT’s holdings.