Real Estate

Construction

Managing Partner – Real Estate and Construction

Real Estate Investors

Multifamily Housing

Lodging

Opportunity Zones

Real Estate Valuation & Advisory Services

Managing Director

Transactions

Transaction Advisory Services

Valuations

Private Equity

Managing Partner, Managing Director – Baker Tilly Capital, CPA, JD

In December 2019, Baker Tilly leaders Roger Ledbetter, Thane Hutcheson and Brent Maier were joined by Houston real estate industry specialists Sonya Rosenbach, CFO with Allied Orion Group, and Rene Joubert, principal with i3, for a panel discussion on real estate industry trends and opportunities. Bob Charlet, publisher of the Houston Business Journal served as moderator for the discussion. The group discussed topics ranging from recent trends in the real estate market to best practices for Opportunity Zones to overlooked funding sources.  Some real estate owners hold many assets and may not have expertise in-house to assess and monitor their portfolio’s performance. In the following exchange, the group provides insights on the pros and cons of relying on in-house performance measures as compared to outsourcing these to a third party. Brent: A major benefit of performing this function in-house is the cost avoidance by not having to compensate an outside advisor, the costs are fixed and you can perform the function internally. We have many clients with this expertise who are sophisticated investors and operators who perform these functions themselves.  There are other situations where companies may be spread thin due to a growing business, lack of expertise in a certain area, regulatory changes or changes in staffing. In those cases, outsourcing may make sense. For example, we’ve worked with a private equity firm that wants to get into a particular asset class, but doesn’t have the needed expertise. In a case like that, we are co-advising with the private equity firm where we have the industry experience and knowledge to assist with their decision making. The downside of internal performance measurement is the real or perceived lack of expertise in an area. In these cases, companies may have some of their staff who, instead of doing their “day job,” get distracted by working on other things outside their expertise. The advantage to hiring an advisor is that, with the right advisor, they've had experience in other situations they can draw on and relationships they can leverage to help get to a solution or an answer to a complex situation. The downside, of course, is the cost, but the benefit hopefully outweighs the cost.  Rene: An advisory firm is a fully integrated company, which helps them mitigate their own cycle risk for other lines of business income. However, our biggest focus is “know your asset.” From our standpoint, controlling your assets is critical to knowing how you're going to do on a long-term basis.  Sonya: Our team has extensive expertise in-house, but we also know when to call in other experts to help evaluate performance. We regularly interact with various third-party experts, multi-family professional organizations, and our peers, making sure that we're connected to what's going on in the industry. We collaborate often, but that doesn't always mean you hire a consultant – you can also collaborate without incurring extra costs. Brent: It goes back to our earlier conversation about collaborating and connecting to people. I think my job is pretty simple; it's just connecting dots. I think we're all in a similar program; just connecting dots.  Roger: This is a great time in the market with cap rate compression prices. Companies have to reevaluate whether to use advisors to review your portfolio and non-core assets or do this in-house. This may be a great time to divest. 
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.

Baker Tilly leaders joined the Houston Business Journal for a discussion  on on the pros and cons of relying on in-house performance measures as  compared to outsourcing these to a third party.

Real estate portfolio performance: the pros and cons of in-house performance measures vs. outsourcing

Healthy market conditions in Houston and throughout the country have led  to continued strength in the commercial real estate market. During this  time of marketplace expansion, portfolio management remains important  to optimizing your real estate property. The elements and sub-elements  of your real estate portfolio need to be tailored and adjusted to meet  investor objectives and adapt to market conditions. Given today’s  conditions – and talks of a possible economic slowdown – what strategies  should be used to help ensure efficient use of capital and continued  opportunities to maximize investments? Baker Tilly leaders Roger Ledbetter, Thane Hutcheson and Brent Maier  were joined by Houston real estate industry specialists Sonya Rosenbach,  CFO with Allied Orion Group, and Rene Joubert, principal with i3, for a  panel discussion on real estate industry trends and opportunities with  the Houston Business Journal. Topics discussed include: Recent trends in the real estate market Minimizing exposure of assets and taking advantage of opportunities during economic uncertainty  Best practices for Opportunity Zones Real estate portfolio shifts Attracting tenants to properties Overlooked funding sources
Real estate portfolio performance: the pros and cons of in-house performance measures vs. outsourcing Monitoring and assessing real estate portfolio performance can be a  challenge for any real estate owner, especially those that hold many  assets. Deciding between in-house performance measures compared to  outsourcing to a third party can be a difficult decision for many  reasons, including cost, expertise and resources. 

In this  segment of the panel discussion, the same group provides insights on the  pros and cons of relying on in-house performance measures as compared  to outsourcing these to a third party. 

Baker Tilly leaders joined the Houston Business Journal for a dynamic  panel discussing trends and opportunities in today’s real estate market.

Project Finance

Real estate outlook 2020: trends and opportunities

Providing real estate developers, owners, operators and investors with valuation and advisory services for real estate entities, property portfolios, and complex developments.

The need for specialized valuation services is ever increasing in today’s business and regulatory environment. The valuation of business interests and related assets in the context of company advisory, financial and tax reporting, portfolio valuation, estate planning, insurance valuation and due diligence is at the center of many important strategic and financial decisions, making the selection of a valuation consultant a critical choice. Baker Tilly’s dedication to all aspects of real estate valuation means you can count on our experience, knowledge and objectivity to address your business needs.

Real estate valuation is a complex and disciplined process that requires deep understanding of properties and broader market trends. Our real estate valuation and advisory services professionals work closely in the context of transactions on a regular basis, which allow them to apply holistic, strategic insight encompassing the entire transaction lifecycle.

Due diligence
– Financial due diligence
– Tax due diligence and structuring
– CAM reconciliations
– Lease review and abstraction
– Argus and roll diligence

Decision support and analysis
– Fairness opinions
– Solvency opinions
– Rent studies
– Transaction structuring
– Deal modeling and assumption testing
– Valuation assistance

Integration
– Interim management assistance
– Project-based accounting and financial services
– Project management
– Systems implementation

Purchase agreement
– Working capital/closing date balance sheet
– Earn-out calculation support
– Dispute or claims support

Valuation
– Purchase price allocation, impairment analysis (ASC 805 and ASC 350)
– Periodic fair value reporting
– Tax matters

Our accurate and reliable real estate valuations paired with strategic advisory services encompass the entire transaction lifecycle.

Innovative solutions for developers, owners, investors and property managers. 

Baker Tilly leverages deep industry knowledge and operational experience to offer private equity clients value from the fund level down through the entire portfolio. 

Private equity firms require specialized attention at the fund and portfolio company level. Baker Tilly’s private equity team bring industry specialization in audit, tax and advisor

We bring insight across the supply chain to improve efficiencies, reduce risk and offer solutions as market disruption continues.

We deliver innovative and sustainable results through our collaborative approach across the provider, health plan and life sciences spectrum. 

Baker Tilly’s healthcare and life sciences professionals can help you navigate the future of the complex healthcare industry. 

Advisory, tax and assurance services for real estate investment funds, REITs, private equity real estate, institutional investors, family offices, endowments and foundations.

Transaction, tax, assurance and advisory services for hotel owners, developers and investors.

Transactions, tax, audit and advisory services for multifamily housing developers, owners and investors.

Baker Tilly’s consulting, assurance and tax services help healthcare providers minimize cost and increase revenues while balancing healthcare reform and patient demands

Baker Tilly’s senior services team provides solutions for life plan communities/CCRCs, skilled nursing, assisted living, and home- and community-based service providers as well as affordable housing communities for the elderly and people with disabilities.

Baker Tilly’s valuation professionals provide supportable, defensible and unbiased valuation opinions that can stand up to the highest levels of scrutiny.

Baker Tilly provides a wide range of companies with information on a broad range of valuation matters that are critical to their strategic and financial decisions.

Middle-market business owners, investors and corporations rely on our sell-side, buy-side and financing solutions to execute their growth strategy.

Whether it is for an acquisition, sale or refinancing, Baker Tilly provides due diligence services tailored to meet your specific needs.

Individuals and companies that build, purchase, remodel or expand any  kind of real estate can benefit financially from using cost segregation.

Baker Tilly’s skilled cost segregation specialists conduct studies to help our clients increase not only the amount they can deduct on state and federal returns, but also their cash flow.

When the numbers don’t add up, we cut through the clutter to deliver independent financial analysis that sets the record straight. 

We advise clients throughout the entire lifecycle of a legal dispute — and when it comes to the courtroom, there is no one better to have on your side

Real estate valuation and advisory services

Real Estate Valuation & Advisory Services

Real estate portfolio performance: the pros and cons of in-house performance measures vs. outsourcing

Real estate outlook 2020: trends and opportunities

Real Estate

Private Equity

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Lodging

Multifamily Housing

Hospitals & Health Systems

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Valuations

Mergers & Acquisitions

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Cost Segregation

Complex Disputes & Litigation

Providing real estate developers, owners, operators and investors with valuation and advisory services for real estate entities, property portfolios, and complex developments.

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