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Property Reports in Amarillo, TX
Due diligence is a thorough and extensive, complex and involved stage in commercial real estate acquisition. When you are the potential buyer of a property, it is incumbent upon you to have all the property reports and real estate comps in your hands before you make your purchase.
Whether you are expanding your business, or rainmaker for an experienced investment development team, doing your property analysis makes good business sense. You need a due diligence checklist for commercial real estate acquisitions, a market report like none other put together by Justin Newman. They are as follows:
- The most recent title policy or title commitment on the property in the possession or control of seller together with all related documents.
- The most recent ALTA survey and topographic study for the property and a copy of the construction blueprints, engineering plans and as-built drawings in the possession or control of seller.
- Legal description of the property.
- Zoning Compliance Certificate for the property and all zoning approvals (including variances and any pending applications).
- Declaration of covenants, conditions, restrictions, reservations and easements for the property.
- Seller’s third-party engineering, environmental reports (including but not limited to Phase I and Phase II reports, NFR letters, mold abatement reports and underground storage tank testing and closure reports), appraisals, soil tests, boring reports, foundation reports (logs of pilings), termite or radon studies.
- A true, correct and complete copy of each written lease and each guaranty (together with any amendments), and a certification that there are no oral leases or oral understandings, if any.
- An accounting of all rent and other income, common area maintenance, security deposits and real estate tax contributions paid by any tenant at the property, including, without limitation, a certified rent roll, showing current rent, previous rent if applicable, delinquencies, security deposits, years of occupancy, lease commencement date and lease termination date.
- All security deposits and any other amounts to which any tenant, vendor, or any other party may be entitled.
- A copy of the last three years’ real estate tax bills, including special assessments or incentives, copies of all tax protests, related correspondence and protest results for the property and copies of the prior two years’ utility bills for the property.
- A true, correct and complete copy of each written service contract (together with amendments thereto, if any) and a true, correct and complete written summary of each oral service contract, together with copies of any and all other contracts and agreements relating to the operation, maintenance and repair of the property.
- An accounting of all income and expenses related to the property, including collection reports and tax statements for the last three years.
- A list of all personal property, if any, owned by the seller, located at the property, and used or useful in connection with its operation and maintenance.
- A list of all permits, partial certificates of occupancy, certificates of occupancy, warranties, government notices, special assessments, code violations and unexpired guaranties and copies of same in seller’s possession or control.
- A copy of existing insurance policies and certificates and any pending claims against the property.
- A schedule of pending litigation, if any, affecting the property or seller’s ability to convey the property.
- Any and all other matters as purchaser may deem reasonably necessary to satisfy itself, in its sole discretion, concerning the property and the status of the property’s title.
Mays Basic Property Reports
A basic property estimate can easily be obtained from public real estate records. It provides current ownership information and the date of acquisition of a select piece of real property.
Mays can obtain basic property information for office, industrial, retail, multifamily, hotels, land, special purpose, and other types of commercial real estate assets. You may want to know more details about the location, characteristics, build date for the structure, square footage, lot size, land use approval, last sale price, last mortgage documents, time on the market, and date of transfer.
Mays provides detailed real property reports may be obtainable, but usually our basic realty report is sufficient to meet the needs of a commercial real estate investor in Amarillo and the greater Texas markets.
If you are purchasing new property and you are the first owner, there probably is no need to get any more information. On the other hand, if your commercial real estate investment is in an historical district, water conservation area or rezoning district, finding an inconsistency about the property before you purchase can make all the difference in the world. There may be a discrepancy in the lot size or boundaries, for example. This could throw a wrench in your property development plans and impact your return on investment for years to come.
Mays Commercial Real Estate Comps
There are three different types of property comparisons to help you get a better understanding of your commercial acquisition: sales comps, rent comps and new construction comps.
Armed with price, closing date, buyer, seller, cap rates, and financing terms, you as a commercial real estate investor are better able to assess current property value.
These property reports provide property-level rents and vacancies, summary statistics, concessions, operating expenses, and lease terms. Rent comps give you the ability to compare the performance of one piece of property to the performance of its peers.
New Construction Comps
From proposal to planning, construction to completion, new construction comps allow you to adjust your search criteria based on completion dates, size and stage of construction.