“Finding the Highest and Best Value”

With its in-house real estate, design, permitting and construction management capabilities AE3 is naturally suited to manage the development process. Our abilities range from looking for suitable opportunities for various organizations to providing full scale “developer for fee” project management services for existing projects. We are happy to serve both private equity as well as institutional investors on commercial, industrial, and multi-residential properties 20 units or greater.

Feasibility and Market Analysis:

Our feasibility studies determine what are some viable options for the highest and best use is for a specific property. It examines what is physically buildable on the property based on physical constraints and land use law, what type of product is in demand in the market, and some probable design solutions for the site. Our reports go further and prepare an estimated construction budget, schedule, and overall development cost and develop financial pro formas to determine the probable return for the investor. For project that have a continuous series of operation cash flows we prepare an operating pro-forma as well as a NPV and IRR analysis to account for the time-cost of money. Much more than a simple appraisal – our market analysis uses techniques that derived probable market value based off of real world sales data, and can determine how markets are trending to determine where market will likely be when a project hits the market.

Presenting the Project to Lender and Investors

All of the above information is then neatly summarized into an “8.5 x 11” proposal for use in presenting the information to prospective investors and lenders. This package describes the overall project concept, along with the market, financial and risk analyses described above. This package is explicitly designed to help lenders and investors alike determine whether or not the proposed project fits their needs. With our relationships with area banks, private investors, and other legal and accounting resources we can work with Clients to obtain the necessary debt and equity financing. Our services can include presenting these materials, assisting in the loan application process, and facilitating the organization of the necessary holding entities.

Real Estate Acquisition:

We also have the brokerage services necessary to create the purchase agreement for property, and have access to outside legal counsel for larger and more complex transactions. We believe in running an aggressive due diligence process to ensure that the Seller retains responsibility for any deferred maintenance, defective title, hazardous materials or other such issues so as to not pass these on to the buyer We also believe in this as an opportunity to further negotiate the purchase price of the property so any cost needed to correct such items are absorbed by the seller.

Real Estate Licenses:

AE3 Partners provide Real Estate Brokerage Services through AE3 Real Estate Inc. (California DRE License Number 01798528) and AE3 Development, Inc. (license pending).