Acquisitions & Dispositions
Sun Commercial Real Estate, Inc.
Commercial Real Estate Investment Sales
Commercial Real Estate Acquisitions/Dispositions
Investment Sales/Dispositions/Acquisitions
Sun Commercial Real Estate, Inc. provides extensive experience in the acquisition and disposition of commercial real estate investment assets. Our firm offers comprehensive market knowledge, financial analysis review, and expert negotiating skills throughout the complex process of successfully closing an investment transaction.
Dispositions
Review and Assess the Client Objectives:
Prior to beginning the marketing process, Sun will meet with the Seller/Landlord to define sales objectives, along with value expectations. Our review will include the following:
- Any ownership issues exist that may affect the transfer
- The financial expectations of the owner
- Anticipated time frames for disposition and assignment execution
- Restrictions, if any, affecting the marketing efforts
- Ownership’s position regarding financing and rent guarantees
- Opportunities and constraints regarding a 1031 Exchange
Technical Review of the Property:
Once the Seller’s/Landlord’s objectives are clearly defined, the firm will perform a thorough due diligence review of all technical data on the property for the purpose of preparing marketing materials and a due diligence package. This review will include the following investigations:
- Analyze financial data including operating statements, budgets and rent rolls
- Review all existing leases and contracts
- Review documentation of existing debt
- Investigate competitive properties and perform a market analysis
- Review building plans and “as-builts”
- Review the capital improvement plan (if any)
- Examine environmental reports and surveys to confirm that conclusions are fully supported
- Assemble and confirm zoning and land use data
- Review CC&Rs
- Study title information and deed restrictions
- Review real estate taxes and assessments
Sales Flyers and Sales Packages:
Upon completion of the physical and financial reviews, a comprehensive Sales Package and related Sales Flyer are prepared. The Flyers are used as a quick, preliminary response to broker and prospect inquiries and comprehensive packages are sent out upon request by a potential client. The Packages include the following information, and may vary depending on the specific property:
- Executive summary, including unique property and location features
- Property profile
- Location and site plans
- Photographs
- Financial summaries, including actual operating statements, pro forma income statements and rent rolls
- Lease/rental summaries
- Market overview
- Competitive analysis and site map
- Area demographics
- Traffic counts
Marketing the Property:
Once the Property is ready to be presented to the market, it is promoted using a full array of media advertising, including the following:
- Mass mailing and emailing of Property Flyers to Sun Commercial Real Estate, Inc.’s proprietary database of targeted prospects;
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Electronic advertising of properties is coordinated through the following websites:
- www.propertyline.com, a local and national commercial property listing and marketing service;
- www.loopnet.com, the world’s largest most visited real estate Internet Web site, receiving 160,000 hits per month;
- www.costar.com, the #1 commercial real estate information website; and
- www.ccim.com, the most highly recognized and respected membership of investment brokers.
- Internet and direct e-mail promotion, which includes a hyperlink to detailed property information
- Property signage (if appropriate)
- Site tours
Review of Offers, Letters of Intent and Contract Negotiations:
The brokers within Sun Commercial are highly experienced in all phases of contract negotiations. Upon receipt of an offer or a letter of intent, the firm will perform the following:
- Qualify the buyer based on financial strength and commercial real estate history
- Review the offer or letter of intent terms and conditions
- Present the offer or letter of intent, along with the team’s review comments to the Seller/Landlord
- Prepare the counter offer, if necessary
- Prepare the draft of Seller’s/Landlord’s standard Sales Agreement, if necessary
- Negotiate all terms and conditions on behalf of the Seller/Landlord
- Open escrow
Due Diligence and Closing Activities:
Sun will work closely with the Seller throughout the due diligence and closing process. Our services include the following:
- Provide all necessary due diligence information to Buyer in escrow in a timely fashion
- Answer Buyer questions regarding Property
- Stay in contact with back-up Buyers
- Monitor all timelines and contract requirements
- Track escrow process to assure timely receipt of all required documents
- Review title reports and closing documents
Reporting:
Status Reports are submitted to the seller on a pre-established basis. These reports track the results of the following promotional efforts by Sun:
- The number of telephone inquires received;
- The number of Property Flyers and Packages mailed;
- The number of Property Flyers and Property Sales Packages distributed via e-mail or in person; and
- Property tours conducted.
- Action steps required
- Planned activities
Regular reporting assures the owner remains informed of ongoing activity and is able to gauge the level of interest being expressed.
Investor/Buyer Representation
Review and Assess the Client Objectives:
Prior to beginning our commercial real estate acquisition search, Sun will meet with the Buyers' representatives to review the following:
- Determine the financial goals of the Buyer.
- Evaluate the financial resources of the Buyer.
- Thoroughly discuss the acquisition objectives.
- Review the protocol for decision making and legal representation
- For commercial real estate investments, what are the investment criteria including returns, product type, location and single-tenant or multi-tenant preferences
- For the commercial owner/user, identify the specific property requirements including product type, size, location, visibility, parking and other unique features
- Develop anticipated timelines for acquisition
- Review capital structure and financing arrangements
Property Identification/Site Selection:
Once the Buyer’s objectives are clearly defined, Sun will proceed with identifying prospective investment opportunities and will prepare a comprehensive Investment/Site Selection Package. The Investment/Site Selection Package will include the following:
- Property Details
- Location and site information
- Photographs and/or renderings
- Area demographics
Preparation of Offers, Letters of Intent and Contract Negotiations:
Sun Commercial is highly experienced in all phases of contract negotiations. Upon selection of a site(s) we will prepare a letter of intent to purchase, and perform the following:
- Present the offer or letter of intent, along with the Buyer’s history and financial strength
- Prepare the counter offer, if necessary
- Negotiate all terms and conditions on behalf of the Buyer
- Review and negotiate final purchase document as required.
- Open escrow
Due Diligence and Closing Activities:
Sun will work closely with the Buyer throughout the due diligence and closing process. Our services will include the following:
- Arrange for any required third party reports,
- Analyze financial data including operating statements, budgets and rent rolls, if any
- Review all existing leases and contracts, if any
- Review documentation of existing debt, if any
- Investigate competitive properties and perform a market analysis
- Review building plans and “as-builts”
- Assemble and confirm zoning and land use data
- Review CC&Rs
- Study title information and deed restrictions
- Review real estate taxes and assessments
- Monitor all timelines and contract requirements to close of escrow
Sun Commercial Real Estate, Inc. takes pride in leveraging our expertise, market knowledge and innovative strategies to create and implement long-term solutions for our clients’ commercial real estate needs.