Synergy Real Estate Corporation conducts comprehensive feasibility studies on land use alternatives for new or redevelopment projects. We perform this analysis from the initial concept through project completion.

We use a cost/benefit approach that blends quantitative and qualitative factors, including Site Analysis, Market Study and Capital Budget Techniques. An assessment of financial viability is integrated with other strategic variables to form a complete and concise recommendation to our client.

Feasibility Study Procedures

In a Site Analysis, we consider factors that include zoning, taxes, necessary land improvements, environmental issues, engineering, access, visibility, building specifications and the local governmental agencies.

In a Capital Budgeting Analysis, we consider the Initial Capital Outflow, which includes the Acquisition and Closing Costs along with the Building Costs. Factors we consider include the purchase price, transfer tax, title insurance, financing costs, survey fee, legal fees, environmental and engineering costs, and overall construction costs. We develop Cash Flow Projections, which include a proforma income statement, a proforma operating expense statement, and a disposition analysis. We use this information to perform a Discounted Cash Flow Analysis considering the Net Present Value, Internal Rate of Return, Payback Period and Profitability Ratio.

Our report will include a recommendation regarding the project along with suggested alternatives to enhance the project. We will also make recommendations on the Public/Private financing of the project.