Real Miami Commercial Real Estate offers professional representation services designed to promote our clients’ best interests whether leasing or buying commercial real estate. Our specific goal is to add value to the transaction by saving time and money and to assure the very best facility is acquired at the lowest cost. The following is a brief summary of our approach to tenant/buyer representation.
Before a facilities plan can be formulated, a thorough review of the existing lease or ownership situation is imperative. Important dates are identified to verify that all parties are aware of existing options, notice provisions and obligations. Economic benchmarks are established to compare future relocation, lease renewal and acquisition terms.
Market Review and Evaluation
With the organization’s goals and objectives in mind, wedevelop a list of the most suitable options and the advantages and limitations of each. Pertinent industry trends including vacancy rates, new construction, supply/demand, recent sales and other market information are compiled and analyzed. Facility/property tours are conducted and the preferred options are ‘short listed.’
Comparative and Financial Analysis
We compare the costs associated with each option over the life of the lease or acquisition in several ways: monthly/annual expense, rent escalations, operating expenses and real estate taxes. We calculate the present value of each option and if appropriate, we will prepare a lease versus own comparison. A detailed summary is developed, highlighting key economic and non-economic concerns. Specific client concerns are also incorporated.
Real estate consultants are only as good as the information they provide, and successful transactions are guided by accurate market information. Years of experience, relationships, and volume of transactions create this strong market information. This helps make the most informed decision and enables us to negotiate the best possible terms.
Letter of Intent
After several rounds of negotiations among competing sites, the preferred building and/or property is selected and letter of intent terms are negotiated. During this phase, we solidify key business and legal issues and lay the groundwork for smooth lease or purchase negotiations. Since this is the foundation for the final agreement, we take extra care to incorporate important provisions, including a ‘no shop’ clause.
The lease or purchase agreement is reviewed and negotiated to verify consistency with the Letter of Intent. The primary goal of this phase is to protect our clients’ interests by identifying problematic provisions. We strongly recommend document review by competent legal counsel during this phase before signing a lease or sales contract.
What does Investment Sales entail?
Current property owners may be looking to dispose of a poor performing investment and trade (1031 exchange) into a different asset class. Owners may be looking to invest or retire and deploy their funds elsewhere. We will advise as to best strategies and other opportunities analyzing and working with the owners’ accountant to minimize income taxes on gains. In these cases, we will at no cost or obligation consult with owners and gather all the financial information to arrive at the best and highest sales price.
If you are looking to acquire a property, we can identify the most suitable investment that meets the investors criteria. Buyers may be looking for a straight return or investment or they may want to purchase a distressed asset with upside potential.
When dealing with buyers, we prefer to represent investors under an exclusive or non-exclusive buyer representation agreement. This is recommended when the buyer is interested in “off-market properties”. The advantage of this form of representation is that the broker is protected should the buyer purchase a property that the broker researched and found through extensive cold calling and analysis. The advantage to the buyer is that the broker represents buyer and has an incentive to obtain the property for the best possible price.
What is a Real Estate Syndication?
Real Estate Syndication is an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own. From time to time Real Miami Commercial identifies properties that fits the criteria that provides investors with an attractive return on investment. The biggest reason investors participate in Real Estate syndications for Real Estate is access to deal flow. Not every investor has the time to search and underwrite hundreds of properties to find the one worthy of purchase.
Why do people invest in Syndications?
Investors that participate in real estate syndications have access to the deal flow and the ability to invest in real estate without the inconvenience of property management.
The money in real estate investment is made on buying at the right price. Identifying these opportunities requires knowledge of market trends, leasing and financing.
An investor usually makes a return on their initial investment. They are also participating in all the future appreciation of the property when it is eventually sold.
Who is involved in a real estate syndication?
A syndicator or sponsor is the individual or company in charge of finding, acquiring and managing the real estate. They have the experience to underwrite and perform the necessary due diligence to determine whether the property meets the investment criteria.
The other party is the investors. These individuals invest with the syndication and own a percentage of the real estate. They get all the benefits of property ownership but they are not involved in acquiring the property or arranging financing (if there is a loan) and the day to day management.
In some transactions, there is a third party, the Joint Venture (JV) Equity Parties.
This JV partner typically has access to a large number of investors and serves as a conduit between the syndication and the investors. In many cases the JV Equity partner may assist with the financing and assist the syndicator with reporting, communications and even tax documentation.
Real Miami Commercial caters to the needs of the banking industry by successfully collaborating with their asset managers in the implementation of their asset disposition strategies.
We are a preferred real estate owned (REO) service provider to lenders such as Mercantil Commerce, US Century, GE Capital, First Citizens, and many more. We provide lenders with broker price opinion (BPO) services to help assess the value obtained through appraisals and other market channels.
We provide institutional lenders with the following services for properties listed with our company:
- Professional property offering memorandums/brochures
- Placement of listing on all major industry listing services
- Multimedia presentations, where necessary
- Dedicated website for each listing
- Custom made signage on property
- Weekly management reports
- Custom marketing strategy for each asset type
- Assistance in identifying appropriate contractors, maintenance personnel, and management companies