Stout was engaged by a San Francisco-based real estate platform to assist with ASC 805 needs in conjunction with the acquisition of eight separate apartment developments in the San Francisco market.
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 individual properties by component, built out cost models, and discreetly valued the underlying land. 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.