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Centri Case Study: Taking Your Real Estate Entity to the Next Level

Challenge

A start-up real estate entity that received some initial anchor investors was looking to take the next step and drive their company towards the public markets. The company had the personnel to perform the everyday accounting functions and operations, but it did not have the skillset or bandwidth to handle the impacts of technical accounting matters nor have the expertise to address the compliance of developing an internal control structure.

Action

The company called on Centri to create accounting policies and controls, help identify gaps within the internal control environment, address accounting risks in the organization that would be impactful in the development of the organization, and assist with technical accounting position papers in connection with transactions between affiliates within their UPREIT organizational structure.

Resolution

Centri assembled two separate teams to assist the client, each representing one of its solution sets. The first team focused on the development of internal control narratives such as a heat map, gap analysis, and a risk and control matrix.  The second team focused on the preparation of several position papers that documented the assessment of technical accounting matters ranging from topics such as the evaluation of variable interest entities (VIEs) to the impact of leases in which the company is the lessee.

Results

Because Centri has a breadth of team members across its multiple solution sets, the company was able to obtain the deliverables on time for not just its audits, but also for the timely filing of its original registration statement.

Whether a company is taking the next step in its development or the first step in its journey, Centri tailors its solutions so you can feel assured that your infrastructure is built properly and that your complex accounting matters are addressed correctly the first time.

Michael Mastruzzo

Managing Director | Real Estate Practice Leader | CPA

Michael is a Managing Director at Centri Business Consulting and the leader of the firm’s Real Estate Practice. He joined Centri in June 2022 and assists in practice development across the firm’s service lines. View Michael Mastruzzo's Full Bio