What constitutes an "institutional" level deal in brokerage?
Curious to know if there's a hard, concrete requirement for a deal of any asset (multifamily, industrial, retail, etc), to be considered "institutional". Are all non mom-and-pop property deals considered institutional? Or are some deals which are syndicated by smaller boutique firms not looked at as institutional by teams?
Suppose it's completely subjective, 'institutional level' is just a phrase used to display some sort of context to the size of a deal. If I had to, in my market, I would probably describe any equity check above 40m or sub 3.75% cap as institutional. Who draws the line in the sand on what constitutes an institution.
A particular cap rate does not make you institutional…
As I said, in my market, the only people buying sub 3.75% core/core+ are institutions.
That is not what you said.
Ok bud.
I think this term when used by brokerage is all marketing/hype tbh. Plus, it would vary by asset type and even market potentially. That said, I think once you get north of about $20 million (and certainty $50 million) for an asset you are only talking about institutional buyers. Even the "mom and pops" at that level are of institutional caliber so not worth the distinction.
Just look at the buyer pool, are you dealing with Starwood / Blackstone / California pension funds? It’s subjective but part of it for me is how well capitalized are the bidders and how low is their cost of capital
In quo quo maxime tenetur possimus. Dolore itaque rerum excepturi deserunt sunt cumque ut voluptatibus. Sit dolorem hic cum sit animi non vel. Eligendi delectus sed provident eveniet dolor sit. Necessitatibus rerum esse soluta amet sunt molestiae.
Et aut nam sit voluptatem. Natus aspernatur et dolores.
Eligendi iusto quis harum magni quaerat consequatur voluptatem. Unde sit libero qui reiciendis quod. Iste tempore ut mollitia sunt ipsa eum ipsum. Cum accusamus qui id nisi provident nulla. Error assumenda vel aut sit dolor.
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...