Case Study

Case Studies – Abstract Prudence

Objective
           There was an Ownership change and the new management turned to SQFT KS to review and analyze the data in their Property Management
System for their 600 odd branches. Additionally, require few fresh clauses to be captured from the Lease documents.

Difficulty
           Not a fresh set-up, nor a full-fledged audit. Will run over a month, no specific start date of lease term for the review. Client was looking for
experience and the understanding of SQFT KS; to come up with welcoming recommendations.

Solution
⦿  Finalized start date of the current amendment as the start point of review
⦿  Excluded historical options, since it is of no utility
⦿  Excluded monthly additional charges from scope
⦿  An exhaustive process of financial due diligence was finalized
⦿  Emerged with number of discrepancies between Data in Property Management System and the data in Lease
⦿  SQFT KS’s analysis of the current expenses and Tenant obligations made it evident of significant discrepancies

Results
           With SQFT KS’s clear and concise summation of the discrepancies, Client approved each and every discrepancy that needs to be fixed in the
Property Management System – which was taken-up as a service by itself.

Case Studies – ETL

Objective
           The Client had acquired a 250 Tenant Portfolio. Would like to cleanse the data and load in Yardi before the rent-up cycle (less than a month).
The Client contacted SQFT Knowledge Services (SQFT KS) to perform abstract task with limited Yardi User ID.

Difficulty
           Login cost, Timeline and utilization of existing data (of previous Landlord) were the primary hurdles. The Leases pertaining to the locations
contained critical information that would impact their ability to offer the additional services. The Client needed these key pieces of information
abstracted which would enable them to make the right operational decision.

Solution
⦿  SQFT KS accepted the challenge and created an effective partnership with the Client that remained strong throughout the project. As a key part
of the solution, SQFT KS added value to the Client’s lease abstraction project through the following actions:
⦿  Suggested to use Yardi ETL template for abstraction and then upload into Yardi; hence low requirement of Yardi User ID
⦿  Fresh abstracts of Clauses and Options
⦿  Audit all other parameters (except clauses & Options) from the existing report

Case Studies – CAM Review

Objective
           The Client owns and operates a Portfolio comprised of numerous Office, Industrial and Retail Properties throughout
the United States. They turned to SQFT KS to conduct review of CAM billing for all the leases.

Difficulty
           The project presented challenges in complexity, size and scope. Reports were from various database and the
Lease documents for each location contained specific language outlining the Common Area Maintenance fees
which could be passed on to the Tenant.

Solution
⦿  SQFT KS experienced Team has rich exposure in Annual CAM recon, performed thorough review of each Tenant’s
CAM invoice. The goal of the comprehensive analysis was to determine which CAM charges were legitimately
supported by the lease language as Tenant charges and which expenses weren’t.

⦿  Results
Of the 1,200 CAM audits completed, SQFT KS uncovered mistakes in 300 Tenants; warranting sizable recoveries
from hundreds to thousands of dollars. Many other Tenants had non-monetary errors as well.
Audit Findings: USD 963,161.90