Even my boss is kind of stumped on this one. The owners of my organization have all agreed to sell our land in a Washington, D.C. exurb; the land is predominantly for single-family homes, townhomes, condos and/or apartment rentals, although there is a piece of commercial (office/retail) land worth about $6 million or so. Combined, the land will probably sell in the $40-50 million range. What major firms/brokers do land deals like this one? I'm open to suggestions. If you have an individual in mind, please feel free to PM me.
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Like he said ... the big firms/usual suspects
We are currently finishing up a few plots as you described across the NE. TBH timing is awful. HHC buys and banks. Look for big balance sheets. PM me with details, I'd be interested to take a look if it's off market. I can also point in the right direction if it looks good.
Depending on where exactly around DC, JBG would be usual suspect, Federal Capital Partners, Bazzuto, are local DC firms with pockets and development expertise. I have relationships at all 3.
Indeed, they are. Best deals are made without brokers...
...or maybe the principals of his firm want to give away % of the sales price. That sounds more economical.
Funny you guys should bring that up. We have a long list of developers/builders that we can call up who we know personally (from NVR to Pulte, Donohoe to Lerner) but there seems to be a big push internally to hire an agent. I'm like, "Uhh, for what?"
If there's a ready, willing, and able buyer who is serious about buying the deal... Bringing it to market is going to put their feet to the fire and make them get competitive to win the deal.
Edit: You could sell it off market without a doubt and still get a solid price. But you will never never if you left in the table unless you open it to every buyer in the market.
Just to follow-up on this, most brokers have not been interested in the deal. It could sell for up to $40 million, but brokers, by and large, have not had the skill set to take on the deal and to value the property properly, they have not had the potential buyers that might be interested, or even the desire to take on the deal despite the nice commission potential. This is after mining the top D.C. area brokerage firms and talking to the biggest and baddest players. So was not for D.C. land--this was for D.C. exurban land--the far suburbs. There has just been zero interest among brokers after receiving the details of the deal.
So, we have tried to go the broker route and it appears to have failed. Although we're waiting to hear back from one more group. They asked us to give them 45 days to look at the deal and value the land, LOL!
Our team sells big deals in a Mid-Atlantic market (top 3 brokerage firm). I don't work in D.C. but could refer you to someone in my company if you need. You can't really go wrong with any top brokerage firms though, most will go after the same big developers and all have similar relationships.
A land team at JLL/CBRE/Cushman would be more than happy to list that for you. I would interview the teams at all the top shops. That's probably a 30-60 day process.
You might also have luck sending out an RFP directly to large SF/MF developers. You'd also be able to avoid at least one side of brokerage fees which is awesome.
PM Sent - Work in the area at one of the big firms and have the right guy for you.
VT '98
this sounds like a perfect deal for the collins brothers...
Bruce Levin at MAC Realty sells a lot of dev sites / raises equity for developers. Good dudes.
Any estimates on the development timeline? Also basic info on acreage approx percentage split on the zoning. I.e. retail, mixed use, and residential densities. I may be interested.
We're putting something together right now--a 2 page summary. It's taking longer than we had hoped to put the information packet together because of the weather in D.C. this week + MLK, Jr holiday. But I'll follow up with you with an information pack in the near-ish future. Thanks for following up!
Its really unlikely that I will bite as I don't really know the DC market at all, but you never know.
Hey, one of my investors buys lands for any size and any amount. Message me and let's talk.
What are the reasons the brokers turned down the work?
Mostly they don't think they have the book of clients who would be interested in the land. Plus, the owners want a lot of money for the land, above what I believe is marketable. Add in the fact that it's in the D.C. exurbs and it's just not that desirable of a listing. In addition, the land covers everything from multifamily residential to single-family residential to office to retail, and most brokers don't have the skill set to analyze all the different types of real estate available. These are all the points I made to the owners from day 1 but of course the owners don't listen to me until I'm proven right--and I almost always am proven right. LOL.
If you want a broker to simply list the deal on their website then it's easy--lots of people will do that for the outside chance of a 6-figure fee; but if you want a broker who will value-add for the $250-500,000 fee we will pay then I just don't see it. We have as many potential interested buyers as these brokers would have; in fact, we probably have more.
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