Stout was engaged by a New York-based real estate fund to assist with ASC 805 needs in conjunction with the acquisition of a large multi-tenant industrial building in Gilbert, AZ. The requirement came up late in the audit process, and Stout assisted under a very tight timeline.
Our work included a review of both market-based and historical income streams, cash flow projections, closing statements, and other transaction due diligence. We projected cash flows for the property, built out cost models, and discreetly valued the underlying land. We also valued various other real estate intangibles such as 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.