Pre-Acquisition Due Diligence

When commercial real estate owners look to acquire additional properties, Paradigm can provide Pre-Acquisition Due Diligence and Property Tax Estimates, which forecasts a property’s real estate tax liability for 2-5 years following the acquisition. Our analysis provides ample detail and supporting documentation so that it may be used for underwriting purposes or for the preparation of pro forma analyses or tax budgets.

Benefits of Pre-Acquisition Due Diligence include:

  • 2-5 year estimated value and tax projection
  • Tax verification of total parcels and property variables
  • Tax rate verification
  • Local assessor tendencies
  • Value and tax rate assumptions
  • Sales disclosure/treatment in specific states

Summary of Real Estate Taxes (Sample Report)

Assessment Date   January 1, 2018   January 1, 2019   January 1, 2020 
    Conservative  Aggressive Conservative  Aggressive
Tax Year  2018 pay 2018   2019 pay 2019    2020 pay 2020 
Parcel #1 $8,000,000 $11,100,000 $10,500,000 $11,433,000 $10,815,000
Parcel #2 $1,660,130 $1,400,000 $1,300,000 $1,400,000 $1,300,000
Parcel #3 $4,006,250 $4,300,000 $4,000,000 $429,000,000 $4,120,000
Total Market Value $13,666,380 $16,800,000 $15,800,000 $17,262,000 $16,235,000
Assessed Value $13,666,380 $16,800,000 $15,800,000 $17,262,000 $16,235,000
Tax Rate 2.677% 2.718% 2.718%  2.759% 2.759%
Total Property Taxes $365,849 $456,636 $429,455 $476,231  $447,898
  (Actual) (Estimate) (Estimate) (Estimate) (Estimate)

$100B

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