4 Keys to Finding a Great Investment Sales Deal
I recently wrote about the current state of the Raleigh and greater Triangle markets and why a confluence of factors, accelerated by COVID-19, have caused deal flow to stagnate. Well-positioned syndicators and private equity groups are presently aggregating large amounts of dry powder. With revised economic recovery projections extending as far as 2024, they anticipate acquiring distressed assets at deep discounts over the next few years.
Navigating capital markets is more than throwing a couple of buzzwords on a website and brokering investment sales transactions. The integration of investment valuation and advisory, experience through a high velocity of deal flow, and relationships with debt and equity sources create real transactional value. I take a unique and active approach to solving these problems for my clients.
4 Keys to Finding a Great Investment Sales Deal1. Market Saturation: Most great deals reside off-market; they need to be uncovered, cultivated, and paired with qualified capital. A firm’s market coverage is the key to understanding where those opportunities live. Globalization and enhanced connectivity continue to reshape the operating environment, but my commitment to comprehensive market intelligence remains resolute. Through a concerted effort to speak with and assist every property owner in Raleigh and the Triangle, I understand what makes the market tick. This gives me the ability to match a well-positioned product with those who need it.
2. Access to Capital: An off-market transaction doesn't mean that the deal isn't marketed. Off-market sales are typically more heavily advertised but to a targeted audience. Most sellers aren’t interested in entertaining offers from every buyer who may be interested in their property. An extensive network and long-standing relationships with local, global, and institutional capital provide a distinct advantage over my competitors. This ensures speed to market, a more expeditious closing, and a higher probability of success.
3. Boutique/Local Ties: 80% of all commercial real estate transactions fall between $1 to $10 million. Sure, a deal of this size won’t make the cover of the Wall Street Journal. Still, by focusing on this niche, I can deliver the most value to my clients across the broadest range of product types. Most owners in this space are generally more accessible than the REITs or institutional owners, giving me a distinct advantage because of the localization of real estate and my ties to the region.
4. Process Driven Brokerage: Deliberate, process-driven brokerage delivers outstanding results in a well-functioning marketplace and provides a foundation even during periods of uncertainty. Our current environment, stalled by price dislocation, requires a tried and true approach to capital markets. By leveraging my unique information channels, focused on capital exploration and placement, and proprietary database, I provide a singular approach to delivering value to both principals and investors:
- Preliminary market research, analysis, and due diligence
- Buy & sell-side investment valuation and underwriting for both existing and acquirable assets
- Advisory on recapitalization strategies, debt placement, and equity sales