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Asset Valuation in Northern California

Asset Valuation in Northern California

Overview

Services Offered
  • Portfolio Valuation

Objective

A private equity firm that manages a fund with a majority interest in a mid-size California home builder needed the estimated fair value of the builder’s assets in a short time frame. The builder’s assets comprised 1,600 units that included raw land, residential lots, and homes at various stages of development and construction spread over 16 communities in four MSAs.

Approach and Solution

  • We used a multistep process to estimate fair value. First, we compiled and evaluated pertinent housing market information and completed market opportunity analyses to conclude home prices and absorption projections for each community.

 

  • We utilized our recommended revenue expectations along with remaining cost assumptions to complete a cash flow forecast for each of the 16 communities.

 

  • We surveyed market participants to determine current valuation and underwriting criteria, considered the risk profile, and applied appropriate valuation criteria to estimate the fair value for each community.

Impact

Receipt of our timely report allowed the client to roll up our asset valuations to estimate the home builder’s enterprise value.

Featured Consultants

Will Frank
Will Frank
Senior Vice President, Consulting
Will manages and motivates a team of expert consultants to deliver outstanding analysis and recommendations for projects across the country.
Don Walker Headshot
Don Walker
Managing Principal
Don has 30+ years of experience in real estate finance and operations, including running a Top 40 homebuilder, and uses this experience to help clients make informed, strategic investment decisions in real estate. Don is passionate about build-to-rent, product and community planning, builder/developer M&A, and property and company valuations.

Case studies

Project Opportunity Analysis for Raleigh New Home Community
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Financial and Demographic Analysis for Freedom, a Future Active-Adult Community
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Build-to-Rent First Look Study in Chattanooga, TN
Rental Community Analysis Logan Homes
Project Opportunity Analysis for Rental Community in North Carolina
Asset Valuation in Northern California
Asset Valuation in Northern California
Minneapolis - Summer Cityscape
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Apartment Acquisition in Austin, TX
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Project Opportunity Analysis for The Park at Three Point
JBREC Case Study Denver
Project Opportunity Analysis for Suburban Denver Neighborhood
Build-to-Rent Strategy for Southeast Market
Project Opportunity Analysis for Raleigh New Home Community
Couple and adult daughter playing pickleball
Financial and Demographic Analysis for Freedom, a Future Active-Adult Community
New home construction against blue sky
Build-to-Rent First Look Study in Chattanooga, TN

Consulting Services

Real Estate Consulting

Home Building, Land Development, Build-to-Rent, Single-Family Rental, Apartments, Mixed-Use

Our experienced team of consultants thrives on helping our clients make great investment decisions. We will be an extension of your team, helping develop the right strategy for your next project. 

capabilities

Building Products Consulting

Structural Building Materials, Interior Fixtures, Prefab Construction, Commercial Construction

Our team is comprised of industry experts with diverse sector and functional experience. We partner across organizations to provide custom consulting reports to aid organic and inorganic investment decisions, strategic planning, and marketing

Capabilities

Contact us to maximize your opportunities in the housing market.

If you have any questions about our services or would like to speak to one of our experts about how we can help your business, please contact Client Relations at clientservices@jbrec.com.