NKF Stolly and Jordy brokering this with Goldman and WF as lead lenders. Highest single asset financing ever.
How much will Dustin and Jordy net approximately on a deal like this?
| +34 | Where are free agents signing? | 14 | 9h |
| +31 | Uncertain of what To Do Next | 5 | 5d |
| +29 | Capital Restricted Developer | 4 | 13h |
| +28 | Laughable Job Posting | 7 | 16h |
| +14 | AvalonBay Equity Residential Merger discussion | 7 | 1h |
| +12 | Extremely Slow Ramp Up | 1 | 1h |
| +11 | In RE, what is the ONE software tool you couldn’t survive without? | 5 | 51m |
| +9 | Development Budget: use RENTABLE or GROSS BUILDABLE sf? | 3 | 1d |
| +6 | First-year REPE analyst comp check (London) | 1 | 6d |
| +6 | Dynex | 3 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Well...if you do the math, just multiply the loan by .25%-1% and you’ll see the range. For all we know it’s lower or higher, but that’s a good start. Now that you know the gross commission, you’ll have to know their split with the brokerage firm and than their individual cut between themselves and their team.
There is no way they even get 20 bps, shoot on 50MM loans I get corespondent brokers down to that level.
I LOL'd at even 25 bps, forget about 100 bps.
No
Worst kept secret is how commissions are super negotiable and can be a race towards the bottom. There is no fixed %. In a perfect world everyone would love to get 100 bps but it just does not work that way often. Of course, because of ego and marketability reasons, everyone has to pretend they are killing it, but it's not like you are seeing their tax returns, you just have to go by their word. As a data point, nobody knows for sure what was Darcy Stacom's commission when she brokered a $5.4 billion sale of Stuyvesant Town and Peter Cooper Village but it was rumored to be 0.09 or 0.10%, still ~$5MM or so is huge but the industry operates in a such a way that everybody likes to pretend to make more money than they actually make.
^^^This. Race to the bottom is the best way of putting it. At the end of the day, brokers rather take something than lose the deal and get nothing. I've seen 15 bps fees on a $75M MF sale. Thats a $112k. Yes the fee sucks relative to the deal size for sure, but at the end of the day its a $112k for blasting emails and doing tours.
They're not getting paid 1% haha
they will get like 10-15 basis points.
Everyone over thinks it way too much. They’re going to get a market fee of 10-15 bps. I know several people on the team and what they charge in fees from having competed with them for business.
You’ve gotten most of your answers already. I will add this point, which I haven’t seen yet. This is from HFF days. As soon as you are financing a larger transaction ($100M+) the larger it gets the less it is tied to the actual transaction $. An agreement for a flat fee would be agreed to. Call it $750k-$1.25M as the cap.
Update:
https://www.globenewswire.com/news-release/2021/06/28/2253779/0/en/SL-G…
Quasi suscipit nostrum autem et magnam. Nihil nostrum voluptates fugiat provident nemo repellat repellat.
Molestiae qui molestias est quibusdam. Corrupti ut omnis illo. Qui natus esse temporibus aliquam sint delectus.
Minus et reiciendis sit modi perferendis quia. Laudantium sed in voluptatem voluptate quisquam facere. Repudiandae iste ut ab dolore. Cum eum vero laudantium quidem laudantium. Quia corrupti quis et aut adipisci ut natus. Labore molestias nulla illum minima.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...