| There is little doubt that we are currently | | | | look toward markets recovering from downturns.3. |
| experiencing one of the most heated seller's markets | | | | Change Asset Class Focus: Rather than chasing |
| in recent history. Today's investment sales market | | | | multifamily and retail properties look for opportunities |
| has been reduced to an e-bay like environment | | | | in office, hospitality and industrial asset classes.4. Stay |
| where retail brokerage houses simply put an asset up | | | | Away from Traditional Trophy Assets: If you must |
| for auction and wait for the buyers to circle like | | | | buy big look for opportunistic plays that have higher |
| hungry sharks.Many will point to the increased flow of | | | | vacancies, lease roll-over risks, or financing issues. An |
| funds in the commercial capital markets creating a | | | | asset doesn't need to be located in New York, |
| demand-side frenzy that is causing a compression in | | | | Chicago or Los Angeles or be fully leased to |
| cap rates and escalating prices to all time highs as | | | | constitute a trophy designation.5. Look for Joint |
| justifying current market tactics. However while | | | | Venture or Recapitalization Opportunities: Many of the |
| there is an element of truth surrounding the logic | | | | best opportunities in today's market are not found in |
| contained in the previous sentence, I believe it is | | | | out-right acquisitions. Explore joint ventures that will |
| simply easier for many buyers to blame the market | | | | allow you to co-invest with existing owners of assets |
| and follow the crowd rather than adapt their | | | | in a fashion that will allow them to free up trapped |
| acquisitions plan. This is evidenced by the fact that | | | | equity or fund new developments.6. Change Your |
| many institutional buyers like REIT's, TIC syndicators | | | | Acquisition Process: Traditional acquisition time frames |
| or foreign investors seem content to participate in | | | | that were competitive 12 months ago will leave you |
| the madness rather than seek alternate investment | | | | on the outside looking in with today's frothy market |
| strategies. The need to place funds seems to be | | | | conditions. Be willing to make unsolicited offers, put |
| taking precedence over making good investment | | | | up meaningful earnest money deposits and close |
| decisions for many in today's market.The real | | | | quickly.In summary, we are experiencing quite a |
| opportunities in today's market are not found by | | | | competitive sellers market and the investment sales |
| following the herd mentality but can be found in the | | | | market is turning into more of an e-bay type auction |
| application of any of the following strategies:1. | | | | than a business transaction. However, there are |
| "Off-market" transactions: Seek out assets that are | | | | many real opportunities in today's market that can be |
| not listed by retail brokerage firms. Hire an | | | | found when you change the way you look at the |
| investment bank to approach principal owners on a | | | | investment sales market. Myatt is Executive |
| direct basis negotiating with them on assets that are | | | | Managing Director of Pacific Security Capital, a leading |
| not publicly for sale.2. Change Market Focus: Focus | | | | commercial real estate investment banking firm |
| your acquisition strategies on secondary and tertiary | | | | providing commercial real estate loans, structured |
| markets where there will be less competition for | | | | finance, investment sales and advisory services. |
| assets. Additionally stay out of the hot markets and | | | | |