Feasibility & Underwriting.
Development feasibility analysis, residual land testing, pro-forma modelling and investment underwriting for commercial real estate projects across Ontario and Alberta. Every Lucero mandate involving development or investment acquisition goes through rigorous financial analysis before any decision is made.
Financial Analysis Before Every Major Decision.
Work backwards from projected revenues to determine the maximum justifiable land price for a given development programme. The essential test before any land acquisition.
Full development pro-forma modelling: revenue projections, hard and soft construction costs, financing, development timeline, profit margin and return on cost — stress-tested at multiple scenarios.
For income-producing developments, model the stabilised yield on total development cost — and benchmark against acquisition cap rates for comparable stabilised assets.
Acquisition underwriting for income-producing commercial properties: income, vacancy, expense ratio, NOI, cap rate applied value, debt service coverage and levered/unlevered returns.
Stress-test all key assumptions — construction cost inflation, absorption timeline, net rent, cap rate — to understand the return distribution and downside scenarios before committing capital.
Tell Us About Your Project.
Asset type, location, programme, budget and timeline. Lucero works with qualifying principals on feasibility and underwriting mandates.