Want Great CRE Deals This Year? Don’t Forget This One Thing
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Plenty of folks have splashed lots of ink around about the pandemic when it comes to real estate, and we definitely don’t want to downplay that type of coverage. However, we’re huge believers of the post-pandemic recovery, as consumers are looking to go back to doing all of the things that they’ve enjoyed.
This includes not just entertainment, but travel, connecting with new people, dating, and shopping in person. There are just some things that Amazon Prime can’t do, and those limitations are fueling an extensive recovery.
The biggest firms certainly didn’t realize that 2021 was supposed to be a quiet time for acquisitions. They went out and made killer deals, expanding their portfolios in the process. Yet how about those mega-deals in the commercial real estate world? We think there’s a lot to learn from this, so we included some deals below.
The Best CRE Mega Deals in 2021
Where to begin with these mega deals? Let’s start with Blackstone selling The Cosmopolitan for an eye-watering $5.65 billion. The deal involves plenty of big players, including MGM Resorts International, Stonepeak Partners, and the Cherng Family Trust. Blackstone also made sure to highlight their own capital investment in the Cosmo, which is still a major Vegas attraction.
Over in Miami, Midtown Capital Partners picked up the Vista Business Center for $37 million, picking up a six-building office and industrial park. The property is in West Palm Beach, an area bound to only climb in value over the next decade. With that much office space, it will be very interesting to see what the tenant mix will look like in 2022 and beyond.
A good blend of tenants from different industries will bring extra stability in terms of retention and also appeal to prospective tenants as well.
California is no stranger to mega deals. In December of last year, Intracorp sold Amplifi Apartments for $168 million dollars. The deal gained local interest due to its record-breaking per unit price tag. When broken down by unit, it comes out to $579,310 per unit.
When you start talking about mega deals, everybody gets interested. Brokers start looking at the potential commissions involved (hey, even one percent is a big deal when multiple millions start getting thrown around), investors look at the profit potential, tenants look at the lift to their brand, speculators start looking at capturing any benefit from public stocks and funds…the list goes on.
However, a powerful advocate is at the root of these mega deals: the commercial real estate attorney. You can’t pull off a mega-deal without plenty of help from an attorney that’s been immersed in commercial real estate the way good brisket is immersed in hickory smoke.
What Do Commercial Real Estate Lawyers Do For You?
Most assume that commercial real estate lawyers wouldn’t be a necessary part of the deal because you have an agent to look after your best interests. We absolutely love agents, but there is so much more that attorneys do that goes beyond the scope of even the best agents.
As it should; they are two different professionals.
Your attorney is there to protect your interests by perceiving threats ahead of time and also to help you navigate the complexities of commercial properties. In major cities, one of the biggest complexities is in the local zoning laws. In some places, zoning is next to nonexistent.
However, if you’re trying to buy in a place like New York City, you could find yourself looking at plenty of different restrictions to abide by. Even if you’ve got extra time on your hands, reading up on all of these restrictions and understanding how to handle them is a lot of work. Some of the wackiest zoning restrictions will have you shaking your head.
A Good CRE Lawyer Will Guide and Protect
Let the attorney handle it and other complex legal concerns. They also will uphold rights that you didn’t think about, which in turn protects your money.
Even if your state doesn’t require hiring an attorney, you should budget this as part of your deal expenses. Think about it: how many times have you heard about a bad deal going through because no one had the right expertise on their side? Having a third party that can professionally protect you and point out your blind spots is super important.
Rejecting hiring an attorney simply based on cost doesn’t make sense. In the world of real estate, your expenses work on your behalf to expand your investment portfolio. The attorney is protecting that portfolio by looking ahead to any threats on the horizon. What is avoiding litigation really worth?
Way more than the attorney’s hourly rate, even if it is at a premium. Hey, attorneys like steak as much as the rest of us do.
How Are CRE Lawyers Paid?
Lawyers that specialize in commercial property legal dealings have a clear path about compensation. They will let you know upfront the fee and when it’s due. Generally speaking, the attorney will charge by the hour or provide a flat rate. Some states require an attorney present at the closing table, such as Connecticut, Delaware, Georgia, Massachusetts, Rhode Island, South Carolina, and West Virginia.
Working with more deals can lead to you keeping the lawyer on a retainer agreement, which can help ensure that you always have space in their schedule.
Take the Time to Find a Solid CRE Lawyer
Finding a good commercial real estate attorney can feel like finding a needle in the proverbial haystack, but that doesn’t mean that it’s impossible. Great attorneys tend to gain a reputation quickly, and your local real estate community most likely has quite a few to recommend.
The important thing is to keep the lines of communication open. Be willing to explain exactly what you need. As your commercial real estate legal specialist, they’re focused on serving your best interests. They can’t do that if they don’t know what you need.
Consider it part of the cost of doing business. Commercial real estate is like a ladder, and as you climb to new levels, you’ll need more and more legal advice and representation. Find your CRE lawyer now, and hold on to them as long as you can.
List & Browse Commercial Real Estate for Free on MyEListing.com!
Brokers, tenants, investors, and just about anyone else can list and browse commercial real estate for free right here on MyEListing.com! Sign up for an account and receive access to accurate market intelligence, customized property type alerts, and more.
Other recent articles
Article Search
Share
All Article Categories
