Is Commercial RE Selling now?

Question

How does one go about finding buyers for a $7million commercial deal in this market? Are Hedge funds buying at all, if so, where are they?

Michele Redd · Answer

@Jameson Sullivan, thanks for responding.  I will consider your "positive" suggestion,  which is... pick up the phone and make some calls.

Jameson Sullivan · Answer

@Michele Redd If you're wholesaling something, it implies that you have created value by negotiating the deal for less than it's worth and youre going to share that value with the Buyer, presumably. First off, a hedge fund is not buying a $7 million dollar deal. Second, generally people who play in commercial understand what the value of their asset is pretty well so the chance that you have created any value for either party is unfortunately relatively slim. Obviously we have zero knowledge of the deal itself, but I have seen this same post 50 times.

All that said, if you want to sell a deal in this price range, I would suggest picking up the phone and calling everyone in your market that already owns similar assets. Chances are, though, you'll get cut out of the deal after your contract expires. What kind of feasibility period do you have?

Michele Redd · Answer

@Evan Polaski, thank you.  I was hoping to be directed to direct buyers as it's an off-market commercial property at the moment. I appreciate your response.

@Alex Olson.  Thank you, it's retail commercial.  I was seeking direction to where the hedge fund investors are,.  I do appreciate your response.

.

Alex Olson · Answer

@Michele Redd I think yes, a good broker in the area will help you properly position it. Is it multi-family or office/retail? I still have plenty of strong buyers that are ready and willing to take advantage of low rates and sellers that need to sell.

Evan Polaski · Answer

@Michele Redd there are definintely buyers at all price points for the right properties.  What type of commercial property is it?  Office, industrial, retail, etc.  The big correction is not long enough in the making to truly know, but in general I would say retail and office have probably slowed down at least temporarily.

As for how to find buyers, you easiest way is to find a broker that specializes in the type of property you have and ask them to list it.