What do Due diligence do you do?

[Rigo V.]

can everyone share a list of the due diligence they do once an offer has been accepted? (i.e request bank stmts to verify rent rolls)

Thanks

[Tony Nguyen]

This is the one we use for Retail Shopping Centers so feel free to revise as needed - enjoy! 

Current as-built drawings, plans & specifications

Descriptions of buildings, physical aspects and systems

Site Plan (with dimensions and identifying tenants and vacant locations

Phase I and if applicable Phase II environmental site assessment

Property Condition Report

Status of ADA compliance (including ADA plans)

Warranties (HVAC, roof, insulated glass, etc.)

Existing exterior, interior, and aerial photographs of Property

Floor plans with tenant location (CADD/PDF files)

Any and all Leases and Tenant correspondence

Any and all Service Contracts

General Ledger for the past 3 years

Three year history of delinquency and bad debt

Most recent detailed billing statement for all Tenants

Tenant ledgers for previous calendar year & YTD

Certified Updated Rent Roll and Certified A/R Schedule

List of security deposits and prepaid rent

Leasing update (pending deals, LOIs, renewals, lease-up projections)

Future Tenant improvements and leasing commission obligations

Three year history of tenant improvements and leasing commissions

Current year detailed operating budget

YTD budget vs. actual analysis for current year & 2 prior years

Three years of operating statements (revenues & expense) history

Capital items/budget forecast (3-year projection)

Three year history of capital expenditures

Property Tax bill for current year and previous 3 years

Current Insurance Coverage

Three year history of insurance claims and incidents

Tenant’s sales volumes for at least 3 years

Three year occupancy history

Existing appraisal report(s)

Confirmation of Zoning

Certificate of occupancy/use permits

Status of pending litigation and/or threatened condemnation

Most recent title insurance policy

Most recent as-built survey

CAM Reconciliation for prior 3 years