SERVICES

Due diligence involves the blanket, comprehensive evaluation of critical factors that define the general development potential of a given property. These are factors that would affect all projects on a site, such as zoning designation, General Plan designation, existing easements and other title restrictions, and physical/environmental constraints.

Due diligence is typically performed during the escrow contingency period for the purchase of a property. Its complexity varies based on a client’s needs and the time available to complete the work. We will help you to determine the most appropriate and cost-effective scope for your Due Diligence, to ensure that you have the critical data you need to release contingencies with confidence.

Entitlement risk assessment can occur as a sub-component of due diligence (see above), feasibility studies (see below) or independently. It involves evaluation of the permit requirements for a specific development concept, or concepts; identification of environmental review requirements (if applicable); review of the itemized findings that the reviewing authority must make to approve the project(s); and, any factors that have the potential to prevent the decision-maker from being able to adopt the findings and/or grant the required approvals (e.g. significant environmental impacts triggered by a component of the project, probability of organized neighborhood opposition, political disposition of the decision makers). Early identification of these factors allows our clients to fully understand the entitlement risk associated with different development concepts they may have for a property, or with various components of a single development concept.

Our clients can move forward with a project that represents the best balance between development program intensity and associated entitlement risk depending upon their individual risk tolerance. Understanding entitlement risk up-front avoids costly delays that can occur when a project must be re-evaluated and modified as a result of obstacles encountered during the review process.

These studies evaluate whether or not a clearly identified project can be carried out on a given property. Due diligence and entitlement risk assessment (see above) are foundational components of a feasibility study. Pre-requisites are a known development site, and a well-defined project description (i.e. “a mixed use development with 2,200 square feet of ground floor retail/office space, a minimum of 20 market-rate residential units, podium parking, and a maximum height of 45 feet). Clients often have conceptual development plans drafted prior to initiating a feasibility study. In other cases, Vanguard Planning can generate conceptual plans or these plans can be created by the client’s other consultants (e.g. architect, civil engineer, surveyor) as part of the study effort.

Feasibility studies produce detailed information about a specific project design, and allow our clients to determine with a high degree of certainty that their desired development program can be accomplished on their property. In many cases, these studies reveal valuable opportunities that may not have been considered during the first round of conceptual design. Another benefit is early identification of design and entitlement issues that could cause future delays. This information allows for revisions to be incorporated in our client’s initial proposal, reducing the time required to obtain project approval.

Experienced negotiators understand that having the right information – at the right time – is essential to making good decisions and obtaining the best agreements. Vanguard Planning provides timely, focused input to clients, enabling them to make informed decisions as they negotiate the terms of purchase/sale agreements and leases.

We can provide analysis and feedback regarding critical aspects of your proposal (e.g. the minimum amount of time necessary to complete your due diligence), and/or elements of the other party’s proposal (e.g. whether the length of escrow your buyer insists upon is much longer than necessary to obtain approvals for their proposed project). We can alert you about issues that you, or the party with whom you are negotiating, may not have considered, and which could have a major impact on your transaction. These issues can then be addressed in your agreement, rather than becoming the basis of a future dispute, or the subject of litigation.

Our experience managing complex acquisitions for real estate development companies gives us a perspective that is different from, but complimentary to that of other professionals typically involved during negotiations, such as brokers and attorneys. Having us on your team will help you to obtain the best possible agreement, which is the first step towards a successful transaction.

Vanguard Planning assists sellers and brokers by helping to determine a listing value based on the unique features (or limitations) of a given property, and by serving as a member of the marketing team while the property is offered for sale or lease.

In many cases, a property has attributes that contribute significantly to its value, but are not readily apparent during a physical inspection, or even a cursory review of applicable land-use regulations. We can determine whether such factors are present so that these can be promoted in marketing materials. This increases the potential for placing a property under contract quickly, and at a higher price. We can also identify whether there are any conditions that limit a property’s use relative to similar properties. The seller/lessor can then determine whether to adjust the asking price to avoid lengthy marketing periods with no offers, or having their property off the market for months only to have a buyer/lessee back out due to their discovery of an adverse condition.

Often, there are issues that have the potential to generate resistance from prospective buyers or tenants , but which can be quickly and easily corrected. We identify remedies for these issues so that our clients can either resolve them prior to marketing their properties, or present the remedies to their prospective buyers and tenants concurrently with their disclosure.

Potential buyers or lessees of real property frequently have critical land-use and planning-related questions during their initial evaluation of any property. Your ability to provide prompt, accurate answers to their inquiries can make the difference between placing your listing under contract, or losing the buyer/lessee due to uncertainty about whether your property meets their requirements. Vanguard Planning can serve as a member of your marketing team: available to respond quickly to buyer/lessee inquiries in detail, or to seller/lessor inquiries about land-use issues that might prevent a successful transaction with a specific buyer/lessee.

In a challenging marketplace, our clients have a competitive advantage.