Commercial Investment Real Estate November/December 2017 | Page 40

Total Deals Reported in
2017 Deal Makers
market, how to price the offering,
and how to professionally expose it
to your target market.
Christian Schedler, CCIM: I am
$ in millions
a firm believer in specializing in a
# of Deals
Type
Total
single property type and running
59
Office
$775.4
with it. Become an expert on your
33
Multifamily
$730.3
market and know the inventory.
Neil Merin, CCIM: Be consistent
34
Industrial
$440.1
and transparent in your delivery of
48
Retail
$402.3
service. Develop long-term rela-
8
Financing
$144.3
tionships with key players, includ-
15
Land
$137.1
ing owners, attorneys, accoun-
tants, and financial advisers.
8
Mixed-Use
$89.6
Jill Rasmussen, CCIM: I believe
7
Specialty
$50.8
the commercial real estate industry
6
Hospitality
$50.4
is still all about relationships and
218
Total Deals $2,820.3*
experience. Cultivate great partners
and teams, as well as mentors.
* The 218 transactions comprising the total involved
Brett Olson, CCIM: You must
approximately 300 CCIMs, which represents about
2.3 percent of the total CCIM membership.
identify and actively prospect to
developers and owners who are
consistently working on larger projects. You need
to stay persistent and continue to provide a value
proposition to those developers and owners.
38
CIRE: What market forces are propelling the
opportunities for big deals?
Olson: The current low-interest rate environment
and strong commercial real estate market fundamen-
tals are the main drivers. Multifamily development
projects generally are larger in scope compared to
other property types.
Carlson: I believe the industry will continue to con-
solidate as large investors and institutional sponsors
seek to expand their portfolios. Since economies of
scale exist in larger transactions, I expect to see more
portfolios trading on the market.
Merin: The current low-interest rate environment
creates unusual leverage opportunities. These
circumstances allow owners to achieve maximum
pricing, while still providing excellent returns
to buyers.
Rasmussen: In my market, corporate rightsizing,
active capital markets, and REIT growth dominate.
Christian Schedler: Multifamily investors seek
yield for both domestic and international equity
partners. Their preference is to place equity dollars
in large amounts.
Larry Schedler: Currently, multifamily has the
highest availability of debt capital I have ever seen.
CIRE: What is the greatest hurdle to
overcome for closing big transactions? CIRE: What’s the key to being involved in big
deals?
Larry Schedler: As commercial real estate profes-
sionals, we have to use our time wisely. Generally,
larger transactions take longer to close.
Christian Schedler: Every transaction has speed-
bumps. It is our job to think outside of the box and
come up with a solution to any road block that may
come up.
Rasmussen: You need to have enough experience
and strong relationships to handle any deal chal-
lenges that come up during a project. Also, you need
to have the control and understanding to know what
to do to get deals closed.
Carlson: Closing a deal involves a lot of people,
including third-party reports, title insurance, and
legal teams. It can be a challenge to get everyone
rowing in the same direction and working toward an
agreed closing date. Constant communication and
status updates keep everyone appraised and help to
ensure a smooth closing.
Olson: From a mortgage banker’s perspective, the
biggest hurdle is identifying capital sources that are
willing to lend on larger projects at the appropriate
leverage levels for the borrowers.
Merin: Make sure that your property and market
information are accurate and defensible. Carlson: Focus on working hard and transacting
deals of all sizes. Eventually, your business and deal
size will grow together.
Larry Schedler: Be a team player, work hard, and
work smart.
Merin: Establish an excellent reputation and always
be consistent and truthful in your presentations and
work. Don’t be afraid to provide advice without
compensation, but be sure you get paid for services
that benefit a client.
Rasmussen: The primary qualities are experience
and relationships, as well as a proven track record for
closing all sizes of transactions and being a creative
deal maker.
Christian Schedler: Teamwork is essential because
every party in the transaction plays a critical role get-
ting the deal across the finish line.
Olson: Stay persistent in your marketing and net-
working efforts, so you are front of mind with your
clients.
November | December 2017
CIRE: What does the future look like in
closing large transactions?
Rasmussen: We have several large lease and devel-
opment transactions in the pipeline. The market is
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