STNL Developers - Question
I'm almost a year in with a smaller STNL developer in the Southwest. We develop in several states for national tenants, mostly outlot developments. I'm on the acquisitions side and have a few deals under contract right now, but they're taking forever. we get to the end of dd and I'm going back to the seller/broker asking for more free time. then we use our extensions and put up hard money; at the end of those, I'm going back and asking for more time. I know things come up and folks are busy, but it seems like once we're under contract, the deal isn't getting any serious attention from the partners until 2 or 3 months into dd then we're scrambling and asking for more time. Maybe this is the norm in the STNL world and I just don't know; can anyone chime in? Are you seeing ground up STNL deals closing within 4-5 months and shovels in the ground shortly thereafter?
This is the norm in a lot of places. You don’t focus on things until you really need to. It is more driven by culture of a firm than not. I’ve been at shops where the DD period is busy, but not hair on fire every day because you do a little bit each step of the way. I’ve also been at firms that would lob offers in based on PPSF, and than when it came time to do diligence, it was hair on fire up until 3 AM because you actually had to get things moving. It was terrible. I found it’s generally a culture thing than is this the market I’m operating in.
We’re definitely the second type and it’s very frustrating.
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