Independent Investment Review
Avanor Partners gives real estate investment firms across the United States an independent second underwriting of an acquisition, with a return reconciliation and a clear position on whether the evidence supports the deal.
When this helps
You are about to commit capital and want a second opinion first. Your team has a model that works, and you want to know whether it still works when someone else builds the numbers from scratch.
How it works
What your team concluded
Your underwriting, your market read, your business plan.
What we conclude
We run the deal ourselves first, before we look at your numbers.
The gap, explained
Where our numbers and yours differ, and why.
Doing the work before we read your numbers is what keeps the second opinion honest.
What we test
Revenue
Market rent growth against new supply and comparable leases. Lease-up pace, concessions and loss to lease. Renovation premiums against achieved comparables.
Expenses
Property tax after reassessment. Insurance at current quotes. Payroll, repairs and utilities against comparable assets.
Capital
Renovation budget and pace. Deferred maintenance found in diligence.
Financing and exit
Yield against the cost of debt. Refinancing proceeds and timing. Exit cap rate against entry and market evidence.
How we reconcile returns
We start from your projected return and replace one assumption at a time with ours, in a fixed order. Each step shows how much of the gap that assumption explains, and the steps add up to the full difference. Your committee sees which assumptions drive the result.
How we test the downside
We run the deal through slower lease-up, weaker effective rents, a smaller refinancing and higher cap rates, and find where it breaks: the point where the property stops covering its debt, the refinancing stops returning capital, or equity is lost.
What you receive
- A written review: key figures, our answer, and the three most relevant risks with how each can be mitigated.
- The return reconciliation, step by step.
- The downside tests.
- Our model, handed over to you.
The four answers
Supported
The evidence supports the investment thesis and the underwriting as presented.
Supported with material qualifications
The thesis holds, subject to specific issues that should be resolved or priced before closing.
Not supported
The evidence does not support the underwriting as presented.
Insufficient information
The materials provided do not allow a conclusion either way.
We give you the answer. The decision stays yours.
Timing and engagement
A standard review typically takes three to five business days, once we have complete materials and have accepted the scope and timeline. A review is one piece of work, with a fixed fee and a clear end.