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redever hope you can help
Ha thanks for the shout out! Frankly there are few rules around this. Dispositions is considerably less time consuming and people intensive than acquisitions; assuming the firm is engaging an investment sales broker, which almost everyone does. I would say it is generally managed by a very senior person (CEO/CFO/CIO) and the lead portfolio manager/senior market person (EVP/MD) and then usually the assigned Asset Mngt team. It is AM that has all the docs/data needed to sell, the group that can manage and provide access and details for the buyer's due diligence. The Acq team may participate, and the senior acq officer may have a say at the table (and a bonus/split of profits on the line), and the assoc/analyst may assist in some modeling exercises if they are most skilled to help.
In reality, not all firms do dispositions that often, so there is just ad hoc infrastructure when required in many instances. Alternatively, if a frim does often, the group known as "Capital Markets" might manage the process, especially if it is an everyday occurrence. Only time i've ever seen a "dispositions" dept was for a net lease REIT that had a segment that basically "flipped" portfolios (they bought huge NNN portfolios, than sold of in smaller chunks or even individually to HNW and 1031 buyers). Other wise cap markets will do recapitalizations when needed (usually led by CFO/CIO).
If it is a developer, selling after completion, it's probably the same development team managing through life cycle.
Thus, few rules, and many firms choose to more or less hold indefinitly (open-end pension funds), or just sell as portfolio/entity (preferred exit mode of REPE).
Sent you a pm
At my dev shop we have an in-house AM team that takes most of the control of the project during lease-up and stabilization through dispositions, the development team usually starts to disengage once it gets to stabilized rent rolls. Everyone handles it differently, I've seen some shops where the development team is basically a glorified CM shop and they have a dedicated finance group for acquisitions, budgeting, change orders, etc.
typically AM. depends on the shop. both functions usually play a role with AM typically leading the disposition.
As you had mentioned, it does vary per firm. However from what I have seen, LPs typically have AM perform dispos, and GPs have a mix of either hybrid Acq/Dispo teams or a dedicated team for dispos.
Are life co’s like pgim and MetLife lps?
Varies from firm to firm and the breadth of exposure/responsibilities. If an investment team is truly split between acquisitions and asset management, it's more likely that the asset management team would handle the disposition as they are operating the asset and ultimately have the context/detail around the asset and due diligence material the seller would ultimately request (historical financials, budgeting, leases and subsequent amendments, CAM recs, service contracts, MEP/systems, etc.) and comparing actual performance/projected returns vs. underwriting. In saying this, the acquisition team wouldn't sit around idle and would want a smooth execution and would likely help lift whenever/wherever possible (especially when you have some of the acquisition senior folks tied to the promote). Not a set rule, but just one perspective.
I’ve only seen one firm with a dispositions department. They are one of the largest owners in the country and have a high volume they sell each year. So they have a small team that manages that process. It consists of 3-4 people. If you search LinkedIn you can generally find them.
I think its a combination of Acquisitions and Asset Management to decided which properties/portfolio to sell and then up to Acquisitions to execute on that strategy. Asset Management helps valuate the BOVs/OMs and assists with DD materials but ultimately buyer interviews are held by Acquisitions. Cap rate/valuation is determined by our CIO and whether to move forward with the Disposition.
In a merchant build model, development may be in charge of dispositions as well. I don't have anyone helping me out when I sell a property.
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