Apartment Project Market Feasibility Studies - Continued...

When it comes to the multifamily industry, go with the leader.  Rainmaker's work has lead directly to billions of new construction projects.  If you are going to be seeking third-party financing for the development capital expenses of your project, an arm's-length market feasibility study is required and that's a fact.  Rainmaker's approach is to complete the basics:

1. Demographics Analysis: we analyze the potential market in terms of Class "A" rental through Class "C" (LIHTC) projects.  We review the general demographic variables and trends to spot potential items that stand-out (both good and bad, as the case may be) and provide an initial demand analysis that includes an anecdotal demand analysis for the long-term end of the forecast window.

2. Field Verification: we undertake to provide the comps for the most directly competitive properties that are currently in operation in the primary marketing area and those that can be identified as planned and/or proposed projects that appear likely to impact the proposed project.

3. Final Demographics Analysis: using the findings of the field analysis and initial demand computations, we resolve the demand model to show the net buildable demand for each class of housing in the marketing area.

4. Financial Feasibility Analysis: we load the resulting empirical data into our exclusive software program and the output is a comprehensive financial feasibility study that covers all aspects of the transaction.  

All within a single integrated report wrapper that is professionally formatted and includes charts, graphics, the technical report, table of contents, table of exhibits, index, notes and all assumptions - it's all there waiting for you for only $10,000.  This is the exact same report that we charged $40,000 for just 10 years ago.   

In addition to project market feasibility studies, you can count on Rainmaker for the following additional value-added services:

1. Condominium Syndication Plans.  No, this isn't your father's condominium plan where the object is to sell all of the housing inventory to dwellers; this is a condominium real estate investment plan of syndication designed to provide capital funding for the project.  Due to the regulatory restrictions on use of proceeds, these plans are sized to correspond to the construction phase's last month of capital expense.  This serves to reduce the loan-to-cost ratio of the construction loan helping to make a non-recourse commercial real estate construction loan possible in the commercial bank market.

2. Tenants-In-Common (TIC) Real Estate Syndication Plans.  The TIC plan is just what the doctored ordered to help keep the project on track and raise additional at-risk equity contributions without necessarily diluting the developer's long-term interest in the project.  TIC plans can provide funding as early as the project's pre-construction phase, so they cannot be lightly set aside in times of higher interest rates and/or reduced credit loan availability.

3. Entitlements Financing.  For those entitlements the site qualifies for under statute, Rainmaker's approach is to create a structured funding and use the entitlement credits to purchase credit enhancement and/or a buydown of the interest rate of the construction loan (or what amounts to the same thing).

Do You Need a Market Feasibility Study?

You need to have an independent market feasibility study report for your project underwriting package if any of the following are true:

Learn more about what can be done for your project.  Talk to Rainmaker Marketing Corporation today.