In the past two years alone, we’ve managed finances exceeding $100 million. Greenstar conducts a rigorous analysis of transaction options, including the cost of occupancy, operating expenses, control, risk profile, and balance sheet treatment objectives. Our expertise encompasses transactions involving public-private financing, low-income housing tax credits, and traditional debt/equity structures. Various factors influence the determination of an appropriate ownership structure and, ultimately, the cost of occupancy.
Key Factors Include:
- Lease/Ground Lease Term, Structure, and Covenants: Evaluation of lease agreements and their stipulations.
- Credit Quality: Assessment of the financial stability and creditworthiness of parties involved.
- Accounting Treatment: Proper accounting of lease obligations and improvements.
- Investment Quality: Evaluation of the potential return on investment.
- Risk Profile of the Client: Consideration of the client’s capacity and willingness to handle interest rate exposure.
- Risk Profile of the Developer/Lessor: Assessment of the developer or lessor’s risk factors.
- Allocation of Tax and Property Residual Value: Distribution of tax responsibilities and remaining property value.
- Availability of Tax Incentives/Public Subsidies: Identification of applicable tax incentives and public subsidies.
- Capital Market Environment: Analysis of current market conditions.
- Capital Structure–Debt/Equity Requirements: Determination of necessary debt and equity proportions.
Key Factors Include:
Our detailed process integrates and organizes a myriad of interrelated activities, such as site identification, design, scheduling, debt placement, construction, and fit-out, with the factors above to ensure timely and informed decision-making. This results in the creation of a realistic capitalization plan, facilitating successful project completion.