As an investor/lender, how do you describe your criteria to the market (e.g., brokers, partners)? Here's an example from a former colleague of mine on the brokerage side who has now crossed over:
> I am a newly formed operating partner with a focus on Greater Boston, small- to mid-cap sized deals ($5-25M), and all things multi (stabilized, ground up, resi conversions, condos, etc.). On capital side, I syndicate equity but have a track record of successfully closing deals and won't bid on something unless it's been green-lighted from my LPs.
Looking for more examples of this in your own words. And also feedback from the brokers in this community on what you want/need to know.
This is a bit of a continuation of some learnings from this thread. Thanks to @Bobias", @SHB", and @brosephstalin" for the insight there.
I'll respond since you paged me but you're not going to like it!
I work for a family office, one of the largest RE families in the country. Which means our equity is 100% inhouse, no outside partners and we're in it to keep this family billionaires for generations to come. This means our investment criteria is less return driven and less "mission statement" like than a typical fund and asset type changes depending on the cycle. From 2010-2014 it was all multifamily expansion, since 2014 its been all industrial (while building MF in our land bank). But anyways today my intro convo with a broker would look like this:
I'm looking for urban infill industrial opportunities in the major east coast markets. If its a market I'm already in I can buy value-add, land, stabilized it doesn't matter as long as its in a sub market we like and is true infill. If its a market I'm not already in I need a significant stabilized transaction to get me there, for industrial it should be over a million square feet with average tenant size under 100K sq.ft. across multiple buildings.
We look at things from a top-down approach. We have particular markets we want to be in, and within those markets particular submarkets. If it fits the first two then its the buildings then the leases. We generally do not buy one off buildings in markets we do not have a significant presence in. But once we're in a market through a stabilized acquisition I can pick up value-add and land opportunities as a way to increase portfolio yield.
I think that's a great response! Will page you more often :-)
How often are you fine-tuning these criteria -- the markets/submarkets/property types? And how granular/idiosyncratic are the submarkets? I'm in the Boston market so if you give me an example I'll follow.
Going back to your view from the other thread, how many brokers do you have a close relationship with? As in when they call you stop everything and pick up. How frequently are you in front of these brokers? Weekly? Call/text/email?
I'm not in brokerage any more. Working on a startup in this space and trying to learn as much as I can. Really appreciate your view and hope to hear more!
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