Guiding Your Build with Financial Confidence
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VTX conducts a rigorous analysis of transaction options including cost of occupancy, operating, control, risk profile, and balance sheet treatment objectives. We are experts in transactions involving public-private financing and low-income housing tax credits, as well as traditional debt/equity structures. There are many variables that factor into the determination of an appropriate ownership structure and, ultimately, cost of occupancy.
Key factors include:
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Lease/ground lease term, structure, and covenants
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Credit quality
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Accounting treatment of lease obligation and improvements
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Investment quality
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Risk profile of the client (e.g., ability/willingness to take interest rate exposure)
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Risk profile of the Developer/Lessor
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Allocation of tax and property residual value
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Availability of tax incentives/public subsidies
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Capital market environment
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Capital structure–debt/equity requirements
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Big Title
We customize financial solutions to meet long-term real estate strategies
Our delineated process integrates and organizes the myriad of interrelated activities such as site identification, design, schedule, debt placement, construction and fit-out with the factors above to ensure timely and informed decision-making, resulting in the creation of a realistic capitalization plan.