Frequently Asked Questions
Why do I need a feasibility study?
What is due diligence?
How long will it take to complete an indepth study?
When do I contact a lender?

Why do I need a feasibility study?

A feasibility study provides an arms length third party review of your project and its viability.

The project needs be viable economically (will it make the money you need it to to be successful); developmentally (is the site zoned for storage); and physically (does the site work for it's intended use).

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What is due diligence?

During a purchase of an existing storage facility or during the purchase of a vacant piece of land, the contingency period is considered your initial due diligence phase. 

During your escrow contingency period you should complete the site due diligence, some of these items may include:

Having a feasibility study completed

Review the zoning, land use entitlement and conditions of approval

Request an ALTA land survey

Review the title report for easements, liens and other issues which affect the marketable title of the property

Have a Environmental Phase I Report completed

Review projected budgets and developmental fees

In existing facilities complete audit of the facility (physical and the books)

Review the project CC&R's and request architectural control approval

Begin reviewing project financing

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How long will it take to complete an indepth study?

The feasibility process takes anywhere from three to five weeks to complete a full feasibility study.  

To complete the proforma section of the study site plans need to be completed, you can either hire an architect/designer locally to complete your preliminary site plan or as an alternate addition we can complete the preliminary design for you.

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When do I contact a lender?

It's usually advantageous for you to contact a lender during your due diligence phase to obtain their underwriting requirements.  

Once you know what their requirements are you would be able to check off the completion of each item during your due diligence or development forward planning.  

If you elect to close your transaction without finding out what the underwriting guidelines are you may be surprised to learn of items you need to complete that haven't been done.

This sometimes becomes a costly error, both in money and time. 

Some Underwriting requirements may include:

Filing documents for your entity showing the entity is viable and legal to contract

Feasibility studies

Tax returns of entity and principals

Preliminary and final cost breakdowns

Statement of developmental fees

Zoning approval or conditions of approvals

Soils reports and environmental phase I reports

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