IBH Capital Management - Valuation of Industrial Properties
We provide asset valuation and advisory services for all real estate classes, including portfolios of single-family assets, multi-family assets, office, retail, hospitality, industrial, self-storage, and data center properties, as well as land and residential development opportunities. Additionally, IBH Capital offers development appraisals, feasibility and market studies, consultancy advice and transaction support for most asset classes.
You will receive a comprehensive valuation report supported by our dedicated commercial valuation and investment teams delivered within an agreed upon timeframe and at a competitive price.
Our Valuation Report concentrates on the property appraisal and our recommendations:
1. Property Appraisal
The physical condition of the property, including any deferred maintenance issues and required capex. Our analysis also explores the location of the property, its core and sub-market, as well as historic and anticipated pricing volatility. Our highly-detailed method of appraisal combines a number of valuation approaches: income capitalization and discounted cash flow (DCF) analysis, market comparables, and replacement cost.
By identifying the main performance and value drivers of a commercial real estate asset/portfolio, IBH Capital can help investors, managers, and lenders understand the factors that affect the property value today and in future, as the properties move through their market and maturity cycles. In our valuation reports, we devote special attention to asset/portfolio financial and market analysis, including analysis of the key performance indicators and future projections of value. We benchmark our conclusion against comparable transactions available on the market as well as against other investment opportunities of the similar risk-reward profile, as often requested by our corporate investor clients.
2. Asset Acquisition/Disposition Advice
Asset valuation advice on potential purchase and/or disposition decisions of residential properties, alongside our recommended real estate strategy to optimize asset/portfolio’s financial/operating performance.
How Accurate Valuation Can Help Your Business
We specialize in all types of commercial real estate and provide service to clients in many industries. Our advice allows our clients to make informed decisions in virtually all types of real estate transactions: from acquisition to disposition and beyond.
REAL ESTATE OWNERS, INVESTORS & PROPERTY/ASSET MANAGERS
Many of our clients are real estate investors, who seek more than an appraisal of a certain property or a portfolio. These investors are often interested to hear a professional assessment of the investment quality, riskiness, and general value of a planned investment, as well as learn strategies to maximize their returns on that investment. Especially for clients like these, IBH Capital provides the following services as part of our valuation service:
Determination of Investment Value
During the so-called buyers’ markets, when demand exceeds supply, an asset’s or a portfolio’s market value frequently deviates from the underlying investment value. The deviations are often substantial, resulting in millions of dollars of overpayment for a mediocre investment. To help our clients navigate through many investment opportunities competing for their time and capital in any market cycle, we provide independent advice on market trends and insights, growth areas, and timing, which helps our clients identify the most feasible opportunities for investment and accurately assess investment values in that market, as well as the investment value of any given opportunity in consideration.
Determination of Investment Risks
Professional asset management is an important part of maximizing return on investment of any residential property, however, another equally important part of any financial performance metric is the risk.
At IBH Capital, we firmly believe that a comprehensive asset valuation analysis can significantly mitigate operational risks of an asset and help deliver stronger results by providing expert advice on current and expected terms of financing, existing and projected lease terms (including lease extensions and renewals), considerable shifts in demographics, present or emerging competition, as well as other risk factors.
Asset Management and Performance Optimization Strategies
Periodic appraisals are critical for effective asset management because they help foresee market threats and understand the effects of market movements that affect or can potentially affect the short-term market value of residential properties today or in the near future. For example, even insignificant changes in interest rates can both negatively and positively impact an asset’s investment and market values by millions of dollars due to the effect of multiplication. In its valuation advise, IBH Capital offers a number of performance optimization strategies (e.g. acquisition and disposition strategies, capital allocation strategies, risk mitigation strategies, etc.) that help investors and asset managers ensure that their real estate assets are well-positioned to take advantage of or withstand any such changes.
Asset Financing and Re-Financing
With periodic changes in interest rates across capital markets, up-to-date valuations can help investors and asset managers develop the best capital allocation strategies and maximize returns on their investments due to the effect of positive financial leverage.
Auditing, Accounting, and Financial Reporting
As a business practice fundamental for many companies, IBH Capital can assist management in providing regular valuations for auditing, accounting, and/or financial reporting purposes. IBH Capital provides periodic, cost-effective valuation opinions for regulatory, accounting and financial reporting purposes. Our valuation reports are compliant with both domestic and international accounting standards: GAAP, IFRS, and Russian Accounting Standards.
Expansions and Contractions
Due diligence and associated formal appraisals are frequently required to support business/corporate extensions or contractions. IBH Capital provides business operators and corporate management with an independent view of any real estate asset under consideration as part of the expansion or contraction of the current operations.
A formal opinion of value is usually required to support an acquisition or a merger of an entity that either directly or indirect includes real estate assets. IBH Capital supports such transactions by providing all the necessary due diligence and real estate asset valuations.
PRIVATE AND INSTITUTIONAL LENDERS
IBH Capital provides commercial real estate valuation and consulting services to many private and institutional lenders.
We support lenders in their underwiring and risk mitigation decisions by providing thorough asset/portfolio due diligence and testing its financial and operational performance under various market conditions and managerial setups. Our team of valuation experts is fully experienced in individual asset valuations for senior debt as well as analysis and valuation of Commercial Mortgage-Backed Securities (CMBS) and Residential Mortgage-Backed Securities (RMBS).