CCIM Connections Continued(4)
What’s the best deal you closed because you held CCIM designation?
In the January/February 2011 issue of CIRE, CCIMs talk about their top designation-fueled transactions. Here, other members continue that discussion.
I completed a 12,600-square-foot industrial lease earlier this year using the tenant representation skills I learned in my CI 101 and CI 103 classes. We narrowed the search to two properties that werereasonably similarin appearance and functionality.One of the properties was clearly the first choice from a location and image standpoint but appeared to be much more expensive than the second property.Our solution was to compare the two properties using the net present value method taught in CI 103 to find out how expensive each lease alternative was over the life of the term.Then we negotiated with the first property owner to obtain a net present value thatwas as close to the second choice's NPV as possible.My clients were thrilled when they were able to move into a building we initially thought would be far too expensive.
Chad M. Littell, CCIM
A month or two after I received my CCIM designation I got a referral from another CCIM:100 acres.I sold it immediately and the commission was enough to pay for all my education and travel to attain my designation.
Timothy H. Sennett, CCIM
After receiving a MailBridge inquiry from a national tenant seeking sites, I submitted a listing for them to consider.The property did not work for them; however, I stayed in touch with the real estate director, a fellow CCIM, on a monthly basis for the next eight months.I ended up representing them in my market at a different property, followed by two additional markets in my state. I am now on a monthly retainer as their master broker in four states. This is the best opportunity of my entire career, and it would have been impossible without the CCIM network.
Jake Brewer, CCIM
My most recent office sale transaction was the direct result of me being not only a CCIM member but president of the San Antonio/South Texas Chapter. The seller was familiar with many other qualified commercial real estate professionals, but the fact that I was a CCIM and the chapter president offered the credibility he was looking for.
Sherrie Wade, CCIM
I think the best deal I’ve closed was the sale and buy back of an office building in West Los Angeles.My partner, Craig Newlands, CCIM, and I were able to orchestrate the initial sale during a period of major uncertainty after the credit crunch of 2007.We achieved a record-level price of $28 million, which represented a 4.2 percent capitalization rate on current income and the highest price per square foot for similar class B office buildings.In 2010, we represented the same seller who sold the property in 2008 in acquiring the property post-REO for $16 million. Essentially, after capital improvements, our client bought back the building for half the price they sold it for in 2008.Going forward we have been retained to lease the property for the ownership.
Timothy C. Macker Jr., CCIM
An investment group came to town specifically looking for a CCIM to represent their clients in the acquisition of multifamily properties.The relationship lasted 24 months and resulted in over $50 million in sales. I have been a CCIM for well over 15 years.It was the best decision I ever made in my real estate career.
C. Sterling Scott, CCIM
Just before I took the CI 101 course, I listed some low-income apartments in Columbia, S.C. When I got home on Saturday afternoon after the exam, the phone was ringing. It was my boss telling me he had an offer for the apartments. I asked him about the specifics of the offer. He told me, and I told him it would never fly. I wrote down the facts and then restructured the offer using the same examples we had used in class. The owner accepted the restructured offer, and within 45 days we closed and I had several thousand dollars in my pocket.I have had many sales since I've received the designation, but that experience sold me on a CCIM education.
Sig Buster III, CCIM
I’m a part owner of NAI Utah Southern Region and several residential real estate offices.While attending a CI 103 course in Salt Lake City, I had lunch with a fellow CCIM candidate.We realized we both owned real estate companies in Nevada. Over the course of the next several months, we discussed the terms under which a merger/acquisition would take place. The merger resulted in a win-win proposition where a CCIM candidate could focus his attention on his core business, and my company could grow in the Nevada market.
Jon Walter, CCIM
In January 2010 Scott Worthington, CCIM, assistant director of real estate for DriveTime, utilized the CCIM MailBridge platform to publicize his need for a broker in the Birmingham, Ala., market.Five brokers responded and after a phone interview Scott hired me as his broker.This opportunity would not have been possible were it not for the CCIM MailBridge platform.
Over the course of the next few months I worked with Scott to identify prospective locations using tools that we learned in our CI 102 and CI 103 courses. A site was selected in late April and an LOI was submitted in early May, with the lease being executed on July 1, 2010.Most importantly, I was paid in full before Labor Day.Additionally, I have been directed to identify a second site for DriveTime in Birmingham, which will result in a second fee being earned.
One of the best parts of this opportunity is that I have developed a new friendship with Scott, and he called on me to refer to him a broker in Florida, which I was happy to do.Now, not only do I get to earn fees from my direct work for DriveTime but also referral fees.
All of this is a direct result of the CCIM MailBridge platform, and I for one am very grateful for the service. Earning more than a $20,000gross fee makes paying my CCIM dues enjoyable.
Jonathan E. Lindsey, CCIM
I practice in a small remote market. A few years ago, a highly visible vacant corner property owned by Shell was bought by a commercial brokerage from Calgary. Following the purchase, they put it up for lease with their own signage. Over a year later, nothing seemed to be happening. I approached them, and my CCIM designation was the reason they were at all willing to grant me some time! At that meeting, my CCIM designation was discussed. It gave a lot of weight to what I was sharing with them regarding our market.
They listed the property with me for both lease and sale and hired my property management division for both the property and the facility management. Within two months, I was able to bring them an offer to lease with a strong multinational franchise through a local franchisee for half of the property. My CCIM designation has brought to me a high level of respect in my local market and among the local real estate agents.
Joanne Birtz, CCIM
In 2000 I was asked by Phillips Alaska (now Conocophillips Alaska) to broker the sale-leaseback of its 632,000-sf Alaska corporate center, consisting of four class A office buildings in downtown Anchorage. I was given this assignment in September with the stipulation that it close by the end of the year. I asked Spaulding and Slye LLC of Boston to co-broker with me. Together with Phillips we solicited proposals nationwide, selected the buyer, negotiated the structured financing and lease terms with buyer, lenders, and Phillips. The transaction closed at the end of December with a sale price over $100 million and a long-term leaseback. I had the training to handle this transaction because of my CCIM designation.
Chris Stephens, CCIM
I have used the skills I learned in CI 103 for a 1031 exchange, and I used my knowledge of capitalization rates and present value in purchasing office, retail, and multifamily properties for my own portfolio.
Diane Baer Yecko, CCIM
I located a 10-acre tract of land beside a seven-acre piece I was selling to an investment group consisting of four gentlemen. The seven acres we were buying were zoned highway commercial and designed for a mini-storage complex. The price was $600,000. Because of my knowledge that the Birkdale Golf Community was being built, I knew that the Birkdale developer had his second entrance to that upscale development planned directly across the street. I also knew he would not want a mini-storage complex across the street from the second entrance to these high-dollar homes.
I went to the City of Huntersville with a planned development architectural drawing for office and retail for the entire 17-acre tract. I met with nothing but resistance from the city planners because of the Birkdale Golf Community. I worked with the planners and the City Council. I also showed the Birkdale developer our plan. At first he was reluctant to bless the plan but then he realized that a nice office/retail park would definitely be a lot better for him and the community than a mini-storage property.
We went to hearing with the City Council after eight months of trying and we won. Each investor paid $250,000 for his share of the transaction. We closed and went to the bank for a development loan. I had used my CCIM knowledge to project cost of land, development cost, soft cost, and revenue stream.
Gene Davis, CCIM
Currently our market has a very low unemployment rate of 3.1 percent and is located within the Bakken Oil Formation in North Dakota that produces 90 million to 100 million barrels of oil per year.Everyone in the oil business is positioning themselves for real estate, especially since there is not a lot of office and industrial product in the market. Steve Becht, CCIM, of Becht Cos., contacted us to assist him in acquiring 10 acres of land in Williston, N.D. Since I had the pin, he knew we would speak the same language. With our CCIM knowledge and my knowledge of the area, we successfully found 10 acres for the client. We receive phone calls from Los Angeles, Houston, Calgary, and Beijing as a result of clients being able to find us on CCIM.com through Find a Professional.
Skip Duemeland, CCIM