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
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