Accurate valuation of underlying assets is a critical part of the investment process that drives both original investment and final disposition decisions. Over the last several years, the SEC and FASB have produced several opinions and recommendations related to valuation process and methodology for fund administrators in order to comply with ASC820 (formerly FAS157). FD Fund Administration’s experienced valuation team is well versed in the vernacular and skilled in the processes necessary to effectively communicate and administer a solution specific to our clients’ needs.

Commercial Real Estate

Several factors drive commercial real estate valuation including internal (controllable) and external (market) metrics. Controllable metrics include cash flow of the underlying asset and the tenants/dynamics that drive cash flow. Market metrics include cap rates, discount rates and availability of financing, among others. Ultimately, value is driven not by the commercial real estate market, but the specific market for commercial real estate and our view is if you can’t measure it, you can’t manage it.

The experienced FD Fund Administration team has proficiency specific to commercial real estate with the ability to manage any size, type or goal driven portfolio. Our experienced team manages the process for compiling, reviewing, updating the valuation and portfolio analysis for the fund manager.

Depending on the nature of your needs, we provide extensive support to ensure each client has timely and accurate information.

Services include:

  • Monitoring, identifying and analyzing market trends
  • Portfolio analysis to ensure consistency and appropriateness
  • Asset analysis to identify and manage significant value-changing events
  • Monitoring investment level financial reporting
  • Coordinating communication regarding valuation models and portfolio review
  • Acquisition/disposition analysis and recommendation
  • Appraisal review
  • And more…