Commercial Real Estate Investment/CAM Reconciliation

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Question
Good Evening,

I am doing a CAM rec for a building my company purchased in June 2012, the tenant has a 2007 base year and a cap on expenses.  I have done reconciliations before but this is the first time with a building owned for only 1/2 the year.  Any insight you can give is greatly appreciated.

Thank You

Answer
I understand the situation, but I'm not exactly sure what insight you're looking for. If it's the issue where you only have expense data for 1/2 a year, then you would need to try and get the missing expense data from the previous property owner. If not possible, then you can try to extrapolate to figure the expenses for the missing part of the year, but you'll have a tough time supporting your reconciliation in the event your tenant asks for back-up.

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Mike Fortunato

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Can answer questions on all aspects of commercial real estate investment & development.

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25 years of real estate investing & development. Own & operate a commercial real estate company in southern California.

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