Stout was engaged by a Washington D.C.-based real estate firm to assist with ASC 805 needs in conjunction with the acquisition of various assisted-living and independent-living developments in multiple states.
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 properties, built out healthcare-specific cost models, and discreetly valued the underlying land. We valued real estate intangibles like in-place leases, and also opined on avoided lease-origination costs and 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.