Big League Deals
CCIMs hit a few out of the park this year.
real estate transactions are on the upswing in 2014. About 54 percent of CCIM
Institute members report completing deals in 2014 than in the previous
year, according to the 2Q14 CCIM Quarterly Market Trends report. And deals are
getting bigger. In the past 12 months alone, CCIMs reported more than 20 deals
of $30 million or more, comprising more than $1.5 billion, spanning all
property and market types.
What’s the secret behind closing these major
singles and doubles on a consistent basis can afford you the opportunity to
swing for the fences,” says T.
Sean Lance, CCIM, of Vertica Partners in Tampa, Fla. While these types of deals pose unique
challenges, they are not out of reach of CCIMs.
2014’s Biggest Deals
Banker Commercial Saunders Real Estate
million land purchase
million build-to-suit lease
million office lease
million multifamily sale
million office purchase
million retail sale
Real Estate Capital
$46.7 million industrial lease
$44 million financing
million office purchase
commercial real estate deals, expertise and relationships are essential, along
with hard work and experience, says Jill Rasmussen, CCIM, of The Davis Group in
Minneapolis. Rasmussen and two partners represented the National Marrow Donor
Program in the 15-year, $131 million lease of a 237,500-square-foot
build-to-suit development in Minneapolis from United Properties. “Focus on a market niche and be the expert,” says Rasmussen, who has established herself as
a corporate office and healthcare specialist.
Using his multifamily and development
expertise, Lance and a partner negotiated the $54.5 million sale of a 605-unit
multifamily portfolio in Florida from a Mid-Atlantic investment group to
Preston Giuliano Capital Partners. Lance was with NAI Tampa Bay at the time of
the transaction. The deal involved a fractured condominium portfolio across
three different properties. “Analyzing other similar deals and understanding where market cycles
are at with different asset classes is critical to closing big deals,” he says.
large deals is only marginally harder than small deals if you have the right
team surrounding you,” says
Richard Egitto, CCIM, of Inverness Properties in Englewood, Colo. Egitto
represented Denver United LLC in the 15-year, $81 million lease of 161,218 sf
of office space in Lone Tree, Colo., to tw telecom. Egitto credits his
relationship with his long-term client in helping to close the deal. He sold
the client the building more than a decade ago and has played several roles
with it ever since. “The
the greatest challenge, Egitto says. “These types of deals are very different than standard lease
negotiations. All aspects have to be handled with the utmost care.”
Saunders, CCIM, of Coldwell Banker Commercial Saunders Real Estate in Lakeland,
Fla., unknowingly initiated a large deal by gifting his own market report to an
old friend looking for large tracts of Florida land. Saunders and a partner
went on to represent AgReserves in the $565 million purchase of 382,834 acres
of timberland in the Florida Panhandle from the St. Joe Co. The deal made The
Church of Jesus Christ of Latter-day Saints, which owns the purchasing company,
the largest land owner in Florida. Saunders credits his success with big deals
to being confident in his expertise. “Don’t be
afraid to let people know that you know your stuff,” he says.
It’s also important to add value: Know the “nuances of the market and where a property fits
Duke Suwyn, CCIM, of Colliers International in Grand Rapids, Mich., who along
with John J. Kuiper, CCIM, also of Colliers International, represented Franklin
Partners LLC in the 15-year, more than $46.7 million lease of an 885,781-sf
industrial property in Grand Rapids. Stanley J. Wisinski, CCIM, of NAI Wisinski
in Grand Rapids represented the lessee.
persistence and tenacity along with full comprehension of a client’s needs, says Brett Sherman, CCIM, of Angel
Commercial LLC in Southport, Conn. Sherman and a partner represented the
Kowalski family in the more than $54.2 million sale of the 90,000-sf Village
Center retail property in Westport, Conn., to Equity One. “Truly understand the role you play in the
says. “I like
to say the broker is like the quarterback in the deal.”
Forces at Work
improving economy is adding some much needed fuel to the fire for completing
these large transactions. “There is a tremendous amount of equity in the market right now and
the preference is to deploy it in larger amounts over fewer transactions,” Lance says.
CCIMs also cite limited supply as another factor contributing to clients
willing to pay more for properties. But it’s a double-edged sword. “The lack of inventory is making it very difficult to find exactly
what a client needs,”
Wisinski says. However, it’s not stopping investors from looking to diversify their
office development is also gaining momentum according to Egitto. “Capital markets are hitting on all cylinders,
and the rush to get leases signed, buildings built and sold to developers, and
sellers to capitalize is as strong as has been since the mid-2000s,” he says. In addition, many companies are
striving for space efficiency and pushing for increased build-to-suit
developments, says Rasmussen.
these experts suggest for other CCIMs interested in developing and closing big
deals in their markets?
your client a top priority. “Put the client first at all costs,” says Sherman. Excellent customer service is
essential in building strong relationships with clients to get deals done. “I try to put myself in my client’s shoes and always keep in mind what is
ultimately best for them in all aspects of the deal,” adds Wisinski.
your time. “Big
deals happen at the crossroads of experience, patience, and expertise,” says Lance. “Big deals have many moving parts and require
more time,” adds
piece is extremely important.”
Don’t forget the “little deals.” Big deals will come but they don’t come right away, according to Saunders. “You still need the certainty of smaller deals
to last a long time in the business,” says Egitto. “Stick with your clients: As they do bigger deals so will you,” he adds.
with your peers and professional affiliations. It’s important to remember the resources already
available to you. “As
CCIMs, we set the bar for each other. The collaborative nature of the Institute
— and the people who are a part of it — make us all better,” Saunders says. “I would not be who I am today without my
affiliations like CCIM.”
It’s the CCIM designation that binds these deal
makers together. “The
level of sophistication in larger deals requires the same professional skills
and concepts I learned in obtaining my CCIM designation,” Lance says.
CCIMs, moving up to the majors may be just a matter of refining your approach
and looking for greater challenges. As Saunders notes: “When you want to get better at your sport, you
play against the stronger teams.”
Rangel is communications coordinator for the CCIM Institute.