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.
Asset Valuation in Northern California
Overview
Services Offered
- Portfolio Valuation
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
Senior Vice President, Consulting
Will manages and motivates a team of expert consultants to deliver outstanding analysis and recommendations for projects across the country.
Samuel Sion
Associate, Consulting
Samuel conducts research on demographics, analyzes data sets, and prepares custom consulting for clients throughout the United States. His other projects include valuations to market rankings studies.
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
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
- Market Feasibility
- Home Price and Absorption Recommendations
- Rent and Lease-up Recommendations
- Product Recommendations
- Masterplan Segmentation by Product Type
- Demand Analysis
- Consumer Targeting
- Amenity Analysis
- Market Expansion Strategy and Rankings
- Acquisition Due Diligence
- Portfolio Valuations and Cash Flows
- Highest and Best Use
- Mixed-Use Strategy
- Home Design Trends
- Affordable Housing
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
- Strategy Advisory
- Deals Support (Pre-IPO, M&A, etc.)
- Custom Surveys
- Product Innovation Studies
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.
