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Due Diligence Documentation "Exhibit F-3"
Market Feasibility Analysis Report
The following notes
are provided pertaining to this exhibit:
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What: every
development project requires a market feasibility study be prepared by an
experienced entity (company or individual consultant) that substantiates and
defines the scope and depth of the market opportunity the proposed project
may attain.
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When: this
document is prepared as soon as the Project Site is identified and placed
under contract.
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Why: most
institutional investors and/or lenders require an independent, arm's-length
market feasibility study be prepared and submitted as part of the
underwriting process. The Syndicator requires independent proof of
market in the same manner and level of reporting.
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Where: the
Project Market Feasibility Report is submitted to the Developer and the
Developer maintains an electronic file copy of this document.
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How: in
general, each Market Feasibility Report has three (3) basic steps: an
initial demographics-based demand analysis; then, a field investigation of
the primary marketing area's competition (direct and/or indirect); and, the
final analysis where the initial demand analysis is modified to reflect the
findings of the field investigation and the resulting findings, conclusions
and opinions of the Project Market Feasibility Consultant.
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What's important: a
comprehensive scope of inquiry that includes all demographic analysis
considerations, a field investigation and final report based upon findings
in the local market. This report should follow our Market Feasibility
Consultant's Scope of Work Bulletin.
For more information, please contact us at 281.537.1200 or via email at info@realestateplays.com.
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