Commercial real estate sponsor consulting

Understand the decision before committing capital

We help sponsors examine an acquisition, development, refinance or ownership decision. The work starts with the property, the business plan and the question the analysis needs to answer.

What an assignment can include

The scope is agreed in writing. A typical assignment draws from the following.

• Financial modeling. Acquisition underwriting, development budgets, cash-flow forecasts and Argus models. Assumptions are documented. The sponsor can change income, costs, timing or financing and see the result.
• Sources and uses. The cash required to close: price or cost, debt, equity already committed, reserves, and the costs that otherwise appear late.
• Loan sizing. Proceeds under the lender’s tests, and how a change in rate, term or coverage changes the check the sponsor has to write.
• Investment memos. A written case for partners already in the deal: the property, the plan, the risks and the decision. Not a document for soliciting new investors.
• Asset-management support. The budget and the regular read of performance for an owner who does not yet have that person on staff.
• Financial and variance analysis. Actual results against the underwriting or the budget, and which line items moved.
• Presentations. The deck for an investment committee, a lender or existing partners, using the same assumptions as the model and the memo.

Memos, decks and reports explain the property to people who are already stakeholders. The work does not include soliciting investors, raising money, or placing equity.

Before the team is in place

A sponsor can take on a property, or keep one, before an acquisitions analyst or an asset manager is hired. We do that work in the meantime. The heavy lift is the model, the sources and uses, the variance and the materials. The sponsor keeps the decision.

When the hire is made, the files are already in a form that person can use: documented assumptions, a working model and a reporting format. A small team that is occupied with the property can use the same support without waiting to staff up.

Ownership arrangements and the loan

We can model the economics of an existing or proposed ownership arrangement and assess its effect on borrowing. Counsel documents the legal rights; the lender determines what it will accept. MCM does not conduct fundraising, place equity investments or receive equity-placement fees.

Agree on the assignment

Send the property information, available financials, the decision you are considering and your timing. We agree on deliverables, responsibilities and consulting compensation in writing. Debt placement is a separate service, with the fee due only if the loan closes.

Know what the analysis needs to answer

A sponsor considering an acquisition may need a model that separates contractual rent from leasing assumptions and shows the cash required before the property stabilizes. A developer may need the budget, construction draws and permanent financing brought into one forecast. An existing owner may need to compare holding, refinancing or selling.

The deliverable should make the decision easier to understand: documented assumptions, a usable model, relevant sensitivities and a written explanation of the findings. We agree on the assignment before work begins, including the information needed and who will use the result.

Discuss your property financing or explore sponsor consulting.