Job Description – Diligence Associate
Title Diligence Associate
Reports to Vice President
Position Summary:
- Responsible for performing financial analysis and reviewing financial reports for commercial properties including office, retail, mixed-use, and industrial. The position requires very strong accounting, auditing, and analytical skills as most projects are diligence-related with a finite amount of time to complete the report.
Essential Functions:
- Strong working knowledge of mechanics of real estate, including but not limited to ability to review lease abstracts and interpret accounting reports.
- Strong working knowledge base of property operations for multiple asset types including retail, office, industrial, and mixed-use.
- Review historical P&Ls and trend against current and future projections. Draw conclusions about trends and address and communicate risks in diligence reports.
- Auditing annual CAM and tax reconciliations, reconcile against executed lease documents, and isolate discrepancies between what tenants should be paying as per the lease versus what they have historically been paying. Also, compare recoveries payments to projected payments from the Argus model(s) and isolate source(s) of major discrepancies/variances.
- Trend historical and current base rent, percentage rent, CAM and tax recoveries, and any other revenue from one year to the next and obtain explanations for material variances. Provide the same analysis for all operating expenses and capital expenditures.
- Obtain an aged accounts receivable detail listing noting the outstanding aging and obtain explanations for receivable balances in excess of thirty days old.
- Review accounts receivable and inquire of management for indications of late-paying or slow-paying tenants. Review bad debt expenses over the past couple of years.
- Provide explanations of any extraordinary capital expenditures and variances from one year to the next. Analyze tenant improvements and any capital that is recovered by tenants to determine the basis of amortization or reimbursement.
- Review all components of miscellaneous income and confirm the basis for billing including: parking, tenant improvement amortization, vending equipment, pay phones, stroller income, special services, of any other ancillary income. Provide a detailed list of all components of “Other Income.”
- Prepare a schedule of contracted services (cleaning, landscaping, security, etc.) with terms and payments. List transfer and cancellation rights.
- Review real estate tax invoices to verify payment, any outstanding appeals, and current assessment. Contact the tax authorities to determine the next scheduled assessment date, what events will trigger a reassessment, and the existence of any planned, approved, or proposed rate increases or special assessments.
Education:
- Undergraduate accounting degree. CPA (audit focus) required. CFA a plus.
Experience:
- Two or more years of related analytical real estate or commercial banking experience.
Skills:
- Excellent analytical abilities including the ability to gather and interpret financial and market data.
- Be conscientious about assignments and quality of work product.
- Assume accountability for specific performance.
- Exceptional written and verbal communication skills, including ability to articulate recommendations in a concise and timely manner.
- Ability to handle multiple tasks and maintain control and order over same.
- Basic understanding of appraisal process.
- Exceptional computer skills in the operation and functioning of all programs utilized by the organization.
