Stout was engaged by Millennia Companies – a Cleveland-based real estate company – to assist with ASC 805 needs in conjunction with the acquisition of the Key Center. The Key Center is a 57-story tower in downtown Cleveland, comprising over 1.3 million square feet of office space, as well as a full-service Marriott hotel.
Our work included a review of both market-based and historical income streams, cash flow projections in Argus, closing statements, and other transaction due diligence. We projected separate cash flows for the office, hotel, and parking components. We valued various other real estate intangibles like in-place leases, avoided lease origination costs, and assessed favorable/unfavorable leasehold interests.
Our analysis was successfully reviewed by a national audit practice, and we were able to smoothly and efficiently assist our client with their purchase accounting requirements.