Real Estate Development

  1. Stage 2: Site Acquisition and Due Diligence
    1. The Acquisition Process
      1. Letters of Intent (LOI)
        1. Key Terms and Conditions
          1. Purchase Price
            1. Due Diligence Period
              1. Closing Timeline
              2. Negotiation Strategies
                1. Price Negotiation
                  1. Contingency Structuring
                  2. Non-Binding vs. Binding Elements
                  3. Purchase and Sale Agreements (PSA)
                    1. Contract Structure
                      1. Essential Terms
                        1. Representations and Warranties
                        2. Contingencies and Timelines
                          1. Financing Contingency
                            1. Due Diligence Contingency
                              1. Entitlement Contingency
                              2. Earnest Money Requirements
                                1. Default and Remedies
                                2. Option Agreements
                                  1. Option Fees
                                    1. Fee Structure
                                      1. Credit Toward Purchase
                                      2. Exercise Periods
                                        1. Option Term
                                          1. Extension Rights
                                          2. Option Terms and Conditions
                                          3. Ground Leases
                                            1. Lease Terms
                                              1. Base Rent
                                                1. Escalation Clauses
                                                2. Rights and Obligations
                                                  1. Development Rights
                                                    1. Maintenance Responsibilities
                                                    2. Subordination Issues
                                                  2. Comprehensive Due Diligence
                                                    1. Physical Due Diligence
                                                      1. Title Search and Survey Review
                                                        1. Title Insurance
                                                          1. Owner's Policy
                                                            1. Lender's Policy
                                                            2. Easements and Encroachments
                                                              1. Utility Easements
                                                                1. Access Easements
                                                                  1. Boundary Disputes
                                                                  2. Liens and Judgments
                                                                    1. Survey Accuracy
                                                                    2. Environmental Site Assessment (ESA)
                                                                      1. Phase I ESA
                                                                        1. Historical Use Review
                                                                          1. Chain of Title
                                                                            1. Historical Maps
                                                                              1. Aerial Photographs
                                                                              2. Site Inspection
                                                                                1. Visual Assessment
                                                                                  1. Neighboring Properties
                                                                                  2. Records Review
                                                                                    1. Interview Process
                                                                                    2. Phase II ESA
                                                                                      1. Soil and Groundwater Testing
                                                                                        1. Sampling Protocols
                                                                                          1. Laboratory Analysis
                                                                                          2. Remediation Planning
                                                                                            1. Cost Estimates
                                                                                              1. Timeline Assessment
                                                                                            2. Environmental Insurance
                                                                                            3. Geotechnical and Soils Reports
                                                                                              1. Soil Bearing Capacity
                                                                                                1. Foundation Design
                                                                                                  1. Settlement Analysis
                                                                                                  2. Foundation Recommendations
                                                                                                    1. Shallow Foundations
                                                                                                      1. Deep Foundations
                                                                                                      2. Seismic Considerations
                                                                                                        1. Groundwater Conditions
                                                                                                        2. Structural and Building Systems Assessment
                                                                                                          1. Building Condition Reports
                                                                                                            1. Structural Assessment
                                                                                                              1. Architectural Review
                                                                                                              2. System Life Expectancy
                                                                                                                1. HVAC Systems
                                                                                                                  1. Electrical Systems
                                                                                                                    1. Plumbing Systems
                                                                                                                    2. Capital Improvement Needs
                                                                                                                  2. Financial Due Diligence
                                                                                                                    1. Verification of Income and Expenses
                                                                                                                      1. Rent Roll Analysis
                                                                                                                        1. Tenant Mix
                                                                                                                          1. Lease Terms
                                                                                                                            1. Collection History
                                                                                                                            2. Operating Expense Review
                                                                                                                              1. Utilities
                                                                                                                                1. Maintenance
                                                                                                                                  1. Property Taxes
                                                                                                                                    1. Insurance
                                                                                                                                    2. Capital Expenditure History
                                                                                                                                    3. Lease Abstracting and Analysis
                                                                                                                                      1. Key Lease Terms
                                                                                                                                        1. Rent Escalations
                                                                                                                                          1. Renewal Options
                                                                                                                                            1. Assignment Rights
                                                                                                                                            2. Tenant Obligations
                                                                                                                                              1. Maintenance Responsibilities
                                                                                                                                                1. Insurance Requirements
                                                                                                                                                2. Landlord Obligations
                                                                                                                                                3. Property Tax Assessment
                                                                                                                                                  1. Current Assessment
                                                                                                                                                    1. Assessment Appeals
                                                                                                                                                      1. Future Tax Implications

                                                                                                                                                Previous

                                                                                                                                                2. Stage 1: Pre-Development and Feasibility

                                                                                                                                                Go to top

                                                                                                                                                Next

                                                                                                                                                4. Stage 3: Entitlements and Government Approvals