Hello Everyone,
I appreciate you reading. I've come across a unique situation, in which a seller does not want to market a fairly large asset using Loopnet, but has not objected to signing an exclusive listing agreement.
How would you go about marketing this property without the benefit of a mass-marketed campaign, and with the serious seller expectation that you can get this done.
My ideas include:
-cold calling what I deem to be eligible buyers
-using off market platforms
-mining existing investor relationships
Has anybody else been in this situation? And if you were able to sell a deal, how did you do it? I'm concerned with being able to match the sheer amount of exposure a property receives on Loopnet.
Thanks in advance for your responses.
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So what you're saying is you have an off market listing that isn't a total listing but you want to put it out there for potential buyers? This is pretty common and most brokers have them. What you've listed is what people would do, try to send it to buyers that don't have their own broker or buyers that you trust
Thanks for your response. It's not an off-market listing. We're doing the precarious dance before we actually get the signed exclusive. However, once we get it, we're not allowed to use Loopnet for privacy concerns. I guess there is no difference between this an an off-market deal, but my incentives have been ratcheted up to Def Con 1 levels.
The seller is old school and I suspect part of him wants to see us "earn" our fee without posting it on Loopnet and having the riff-raff come circling.
It's a large building so most of my existing investors, clients and buyers are not going to have the financial wherewithal to write a check.
Don't take every listing. If you have an unreasonable seller and you don't have the database that would otherwise be interested then recommend someone else and politely decline. Don't waste your time.
I would suggest finding as many qualified buyers as possible. This honestly sounds like an "off-market" deal, which is fairly common. Some principals prefer that their properties are not all over the market.
You should also take advantage of other key broker relationships you may have, as they may have a qualified buyer. Put them under a CA/NDA so that they don't blast it out over the net as well.
If the asset is as "large" as you mention and there is value in the deal, you will have buyers. Is this institutional large or still in the private investor/family office range?
Thanks for the info. Yeah, it's more of a family office play. Sorry for the vagaries.
OP, do the above. You have an exclusive so it shouldn't matter if you have buyers that are represented by brokers. You might not have to co-broker a fee or your might. Either way get the exclusive signed, then send out NDAs to CW,JLL,HFF etc.
Good input. Thanks for your response.
Nice information..
Lol the whole "off market" or "lightly marketed" deal is kind of a joke. But I kind of get it having 50+ names on a list that signed your confi but have zero interest in buying your property isn't really helping anyone. Rather than inventing names for new super secret and highly exclusive marketing campaigns if brokers would just include all of the termination options and contraction options in the OMs the first time it would save time for everyone.
Thanks for commiserating.
And yeah, we usually provide thorough lease abstracts with our marketing materials and try to be as transparent as possible.
Check out Brevitas. They're built for situations like these, and I think they've got quite a few people on their platform now. Basically allows you to put up vague details about the "off market" deal (e.g. 300,000 SF office building in Orlando) without disclosing the address, photos, or other details of your choosing. Potential buyers can "request" additional info from you, and you can screen through them to see who they are before allowing them access.
I'm aware of Brevitas, but didn't seriously think to use them since I cant' tell how much traction they have. But now that you mention it, it may be the correct platform for this type of asset. Appreciate your input.
Don't you have a CRM database? E-Mail marketing to a highly targeted list of owners/investors? If not, I would suggest that you pay to use Real Capital Markets it will send it to a curated list of buyers based on a pre-determined investment criteria the subscribers have signed up with (ex. Multifamily, Office, Southwestern US, Investment Properties, and Notes).
Emails/Blasts give you tremendous leverage because you can reach such a large audience with one email. The next best thing is to call a targeted list of buyers. The reality is though, no broker actually knows where the buyer is going to come from. They might have a pretty good idea but nothing is certain until the deal closes.
If all else fails my team would gladly do the brain damage for you guys and sell it and send you a 30% referral check ;P jk not really kidding but kind of kidding.
Good luck!
Thanks for your suggestions man. I appreciate your thoughts and the write-up. If we can't get the deal done, then I'll refer it to your team.
What's the product type? Deal Size?
PM me. I might be your buyer.
Thanks for the thoughtful and informative suggestion. I appreciate it.
Ignore VirginiaTech 4Ever. Obviously you take the client. If investment bankers turned down marketable sellers because they wanted a limited process instead of a broad auction...well, that wouldn't happen because investment bankers are smart.
I work for a family office and know a lot of NYC, FL and TX family offices, including several that specialize in real estate. Send me a PM. I'll make intros if it makes sense.
Fuck you. Rule #1 in real estate--you don't take on a client that you aren't equipped to handle because your reputation is more important than a potential commission (and I can't stress the word POTENTIAL enough--dollars to donuts the OP never sees a penny from this client). If the OP were equipped to handle the client he wouldn't be on WSO asking for advice on the process. The biggest badass brokers in the D.C. market have turned my company down from listing our property for sale because they didn't feel like they had the knowledge or database to properly represent us on the particular property. The idea that you are putting forth that you never turn down a listing is asinine, wrong, and foolhardy.
All these disingenuous people telling the OP to "proceed, no problem" are asking for a PM because they want in on the action because they know the OP doesn't know what the hell he's doing.
Thanks for the anecdote. It probably does apply to other types of real estate. I was intentionally vague about the asset, but it's not terribly complicated or unique. Yes, it's the largest deal I'll be doing without online marketing, but I understand all the value drivers and who would most likely buy. It's not really a matter of not knowing what I'm doing, otherwise I doubt the seller would have elected to go with us given his experience (billion in assets/ major developments/ long successful career) etc. We take reputation very seriously, as well.
I'm a relatively new broker, and I inquired on WSO for ideas from all the experienced and knowledgeable folks on here. My principal is experienced enough to handle a transaction like this, and he's down.
But hey, haters gonna hate, and you seem dead-set and intent on doing that.
I think i've heard somewhere rule number 1 in real estate is "Location, Location, Location"? Idk what idiot said that though.
Nevertheless, I agree with you VT4, there is always a time to take risks, but never ever take on a challenge if you admit from the get go that you can not do it. And by posting to WSO and hoping to get some 19 year old kids thoughts on the issue, this guy has shown he can't handle it. OP, either sack up and know you can handle this, or refer your client to someone more qualified and be grateful you didn't fuck over a client because of your selfishness.
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