Question for the acquisition and development monkeys: My group is looking at a 135 unit multifamily acquisition in a third tier suburban market. The broker is marketing at a favorable cap rate for new, luxury, amenitized multifamily. Here is the rub - construction is still ongoing, the owners are at 50% occupancy and have made the commitment to sell the project once construction is complete and at 70% occupancy. We toured the property and there were not glaring signs of shoddy construction - in fact the property looked pretty good, lots of high end finishes.
Say target company A (Software business) expects to make $10m dollars in revenue in FY20 for $2m in EBITDA and that they currently have $2m in deferred revenue (for prepaid services) to be recognized in FY20.
If company B takes over A and writes down DRs to their fair value (say 100% writeoff to make it simple), am I correct to assume that A will only recognize $8m in revenue in FY20 and that its EBITDA will then be 0?
Hello fellow RE monkeys! Finally got my certified star, and figured now is a good time to do an AMA to continue to give back to the community. Truly, WSO is one of the best resources available online for people trying to break into high finance. As corny as it sounds, without the content on this forum, and the balls to take a couple risks, I’d probably be a financial advisor working in a call center for Vanguard making $55,000 a year (one of the offers I received at the end of undergraduate).
how do I treat the non controlling interest as the acquirer? the nci is $480 m while if I simply paid a 15% premium to current price i would pay ~ $250m. I am supposing an all stock transaction. Nci is added to common equity, so the book value of the target is ~$790 hence my concern of not accounting for the NCI in the purchase price. would it be like a preff stock that i need to close out? Could i issue additional stock to settle the position aka convert the common equity portion of nci of the target into shares of the acquirer?
Thanks for your advice
I currently work as an Associate in S&T Capital Markets covering Fixed Income Institutional clients on the sales side. Over the years I have gained a strong appreciation for real estate (through a little bit of capital market txn and personal endeavors). Is there any possibility to move into real estate acquisition style roles with my experience? Should I think about pursuing a graduate degree to bridge that gap or would a real estate modeling course work as well (Urban Lands or REFM)?
I wanted to get peoples opinions on both of these courses. I have done some research online and found that these two were the most recommended.
Is one superior than the other in regards to total content?
Which one is better for learning to underwrite commercial investment properties?
What are the pros and cons of each?
Your comments are greatly appreciated.
Also, if anyone has either of these courses and is interested in sharing with me i'm open to donations !
I am currently weighing two job offers. One is at a development shop that focus's on shopping centers and STNL properties, the other is in an acquisitions role for single family homes at a tech startup. I see pros and cons to both roles.
Would you choose experience in single family homes or in retail? I have about 1.5 years experience in both development and acquisitions, and there is a really good forum on here that talks about the difference between the two, so I am more curious about your opinion on the strengths and weakness's of the two property types.
What are the benefits for the buyer and seller, when entering into a purchase option for commercial property?
Recently screened a deal between two family offices/boutique investment firms that agreed upon a purchase option for a mixed-use property in Soho in 2014 and are now moving forward with the deal because the option period expires in a few months.
Has anyone participated in a similar deal? What are the strengths and risks for both parties?