Due Diligence Consultants Archives

Due Diligence for Multi-Family Condominiums

Due diligence for multi-family condominiums, as part of an overall prospective joint venture investment in Calhoun Beach Club in Minneapolis (Minnesota). Our real estate due diligence consulting was on behalf of Nissho-Iwai American Corp., since renamed a part of Sojitz Corp.

Real estate due diligence services were provided in support of client’s underwriting efforts, in connection with a proposed investment in Calhoun Beach Club’s major renovation and expansion. The expansion was to include residential condominiums in a newly-constructed wing of the complex.

Calhoun Beach Club is a well-known local athletics club, social club, luxury apartment complex, and social banquets location, overlooking Minneapolis’ scenic downtown lakes. The residential complex is situated on the shores of Bde Maka Ska (the former Lake Calhoun), convenient to downtown Minneapolis and a network of parks and tree-lined lakes with miles of running, walking and biking paths. An aspect of our due diligence for this multi-family condominiums investment, was consideration of the facility’s location among these area amenities and outdoor recreation, as compared to similar (competitive) facilities in the region.

In January 2018, Minnesota’s Department of Natural Resources (“DNR”) formally replaced the Calhoun name with Dakota (Native American) name, Bde Maka Ska. The Dakota name for the lake means “White Earth Lake.” There have been challenges to the DNR’s name change but so far, the name remains. The former name was chosen to honor John C. Calhoun (1782 to 1850), who was a proponent of slavery and expulsion of Native Americans from their tribal lands. The name change promulgated by the DNR is one of a myriad of such actions taken throughout the U.S., to bring about some balancing of U.S. history as viewed by Native Americans and other “people of color.”

Sojitz Corporation a “sogo shosha” (general trading company) based in Tokyo, Japan. The company is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects, in Japan and overseas. Sojitz was formed in 2004 through the business integration between Nichimen and Nissho Iwai. Prior to this merger, our client (an affiliate of Nissho Iwai) for this due diligence for multi-family condominiums, had been formed by the merger of Nissho Company and Iwai Sangyo Company in 1968.

Due Diligence for Shopping Center

01.08.2016 Due Diligence Consultants, Experience with C-Store Fueling Stations, Malls and Shopping Center Consultants, Property inspection services

Due diligence for shopping center acquisition, the Phillips Edison & Company, Inc. (REIT) acquisition of Lakeside Plaza in Salem, Virginia.

StoneCreek Partners provided due diligence consulting in connection with buyer’s shopping center acquisition, including property inspections, Phase 1 environmental reviews, tenant lease confirms, and rent rollover analysis, for this grocery-anchored community shopping center. Support of the buyer included preparation of tenant lease abstracts, estoppels, SNDA (subordination, non-disturbance and attornment) provisions, and a review of common area charges (CAM) and vendors, among due diligence items.

Tenancies at Lakeside Plaza shopping center included a typical roster of anchor and inline retail tenants. The due diligence for this shopping center acquisition included co-tenancy considerations with regard to an on-site Kroger Fuel Center (a branded c-store gas station) albeit with limited convenience store offerings.

Salem is an independent city in Virginia adjacent on the east with the city of Roanoke (Virginia). The city is located in southwestern Virginia in a scenic setting along the Blue Ridge Mountains The shopping center is located at 161 Electric Road, Salem, Virginia 24153.

Phillips Edison & Company, Inc. (Cincinnati) is an internally-managed real estate investment trust (REIT), one of the largest owners and operators of grocery-anchored shopping centers in the U.S. The company has purchased and managed more than 300 grocery-anchored shopping centers throughout the U.S.

Due Diligence for Media Acquisition

24.08.2015 Due Diligence Consultants, Strategic Marketing Consultants

Due diligence for media acquisition, the Metromedia (Metropolitan Broadcasting) acquisition of Foster & Kleiser Outdoor Advertising. Our work included the preparation of Foster & Kleiser consolidated corporate financial projections to support a prospective acquisition by third-party. Work included select due diligence review of information and assumptions suggested by the company’s management, as well as the company’s overall strategic marketing plan for its 3rd-party clients.

Founded in 1901, Foster & Kleiser Outdoor Advertising was outdoor advertising’s original pioneers and have been credited with propelling the industry from simple posters pasted onto any available surface to standardized structures that are uniform, attractive and often feature landscaping enhancements. Our due diligence for this media acquisition documented much of this company innovation as would benefit prospective acquirers. Outdoor advertising includes such media such as billboards, transit vehicles and other types of outdoor signs, including the signs on the outside of businesses. It also includes efforts to promote the company’s products on its own vehicle fleet, even if the effort is limited to brand displays.

As a result of our business planning and transactions advisory support, the company was eventually acquired by a division of Metropolitan Broadcasting called Metromedia, and was ultimately sold to Patrick Media Company. After 85 years of operation under the Foster & Kleiser name, the company was re-named as Patrick Media Group in September 1986. In 1995, Karl Eller and Partners acquired all assets of the company and renamed the business unit as Eller Media Co. In 1997, Eller Media Company became a wholly owned subsidiary of Clear Channel Communications, Inc., now known as iHeartCommunications, Inc. (as of 2014).

StoneCreek Partners’ due diligence for Metromedia (Metropolitan Broadcasting)’s acquisition of Foster & Kleiser Outdoor Advertising.

Feasibility and Due Diligence Consultants - Transaction Consultants and Negotiators

Hotel Portfolio Due Diligence

24.08.2012 Due Diligence Consultants, Project Consultants for the MENA Region, Project Consultants for Tribes and First, Property inspection services, Transaction and Dealmaking Projects

We provided hotel portfolio due diligence for a group of Hyatt Regency hotels located in Saudi Arabia, each of which has since been reflagged. As due diligence consultants’ our work was performed as part of the global real estate asset management practice at Newfield Enterprises International (a family office).

The engagement involved a portfolio of existing Hyatt Regency hotels operating in Saudi Arabia, for potential portfolio acquisition by client. Each of the portfolio hotels was luxury class and in superb locations within their separate trade areas. The due diligence report included an evaluation of competitive hotels, management contract review, and an analysis of each facility’s sales and operating history. Departmental staffing and profitability and 10-year EBITDA projections were also prepared, as part of the work.

One of the hotels (shown in accompanying photo) has since been re-branded as a Radisson Blu). The other portfolio hotels have also since been rebranded.

The hotel portfolio due diligence was prepared for Al Anwae Trading Est. (Riyadh), a family office. Along with Al Tameer Trading Est. (Jeddah), the two family trading companies owned Newfield Enterprises International as an extension of their respective family offices.

Disposition Valuation for Residential Assets

01.01.1985 Due Diligence Consultants, Project Consultants for North America, Residential Housing & Apartments

Disposition valuation for residential assets as part of a capital recovery plan in connection with a luxury “resort residential” development. Our work included the feasibility analysis of alternative disposition strategies as well as preparation of select due diligence materials for use by 3rd-party buyers. Some operating arrangements of interest to prospective acquirers included community association issues, third-party sales agents agreements, and project permits and entitlement-related matters.

The alternative disposition strategies included: 1) continued hold, build-out, and sales (status quo); 2) same as first alternative but in joint venture with a new capital partner; and 3) the complete sale of the project “as is.”

The Hamilton Cove property is located on Catalina Island, just 26 miles off the coast of Southern California. The resort-residential community is situated within a private cove next to the town of Avalon, the main community of Catalina Island. At the time of our disposition valuation for these residential assets, many of the secluded villas of Hamilton Cove were offered for rent for weekend, weekly, and seasonal occupancy, and this fractional use was part of our valuation.

Catalina Island history goes back well before recorded times. Apparently, the Pimungans of Santa Catalina Island first met European travelers in 1542 – when the native peoples paddled out to greet Spanish explorer Juan Rodriguez Cabrillo and his galleon – just 50 years after Columbus first entered the Western Hemisphere. On this basis, the island was claimed by Spain. Santa Catalina Island was awarded to Thomas Robbins by Mexican Governor Pio Pico, as a land grant in 1846. The land grant by Governor Pico was made just four days before the U.S. invaded California.

Our disposition valuation for these residential assets was part of an overall BCE Development Corp. portfolio sale involving the company’s properties in the western U.S., which included the Hamilton Cove resort-residential community.