The Weitzman Group performs complex financial feasibility analyses for its institutional, investor, and developer clients. Using original modeling in Microsoft Excel, Argus or Dyna, our financial feasibility studies are undertaken with the following objectives:
- To determine the set of realistic and marketable underwriting assumptions that provide the greatest return to the equity position.
- To present a full development proforma or projected cash flow analysis that demonstrates the financial viability of the proposed real estate development concept, given certain assumptions.
Our financial feasibility studies will typically utilize the specific development recommendations determined in a marketability analysis for the proposed project initiative to determine whether the concept plan is likely to be feasible, given a set of initial underwriting assumptions. As construction cost estimation is outside of the expertise of The Weitzman Group, we utilize development budgets provided by the client or determined by a third-party construction cost estimator.
Unless provided, we will incorporate financing assumptions that reflect today’s capital market atmosphere, based upon interviews with those involved in financing similar developments or properties. The goal of the financial feasibility modeling will be to determine the greatest monthly internal rate of return to the free and clear property, or to the equity or debt positions, given a set of realistic and marketable assumptions. We perform the necessary sensitivity analyses to our model in order to provide the client with guidance as to development scenarios that are more financially viable than others.
The Weitzman Group has applied our financial expertise with great success in tax cases, arbitration, expert witness, and litigation support services.