Contacting Brokers on Offering Memorandums
I recently made a switch to a development acquisitions shop after being is an asset management role with limited interactions except for working with leasing team and property managers. Does anyone have a list of questions they ask when looking new deals?
As someone who works in brokerage and gets a lot of these questions, the most common are:
If the deal has a heavy leasing component, ask who they reccomend speaking with regarding the leasing assumptions and to understand what is occuring in the market.
These are a good starting point and will lead to questions you can then branch out to as the broker starts to tell you about the deal.
I would also call as opposed to email, writing out an email takes more work and is much more efficient for me to jump on a call with you and to run you through the deal, and it is also a better way to build rapport with the broker.
^ this. Though I would say email is also fine. We generally have a boilerplate response ready to go since the "what's the story & guidance" question is so common
Pro tip - call the analyst on the deal and ask what they valued it at to get the real pricing guidance. Occasionally they’ll slip up on it.
This actually isn't always in your favor, as often times if different firms are pitching to win the business from the seller, they will over value the asset to win the business and then adjust pricing downward once it goes to market.
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