Yes, I've sold to public entities, you need to have a good product first. There's no special reason to cater to REITs as a buyer--they are nothing special.
"Good product first", glad you brought this up -- is there a general CoC that would make it appealing, or is it very much individual to the REIT? I would imagine the latter. Just trying to imagine how the email would go: pitch the product, then ask what they're looking for if not?
I dont think they heavily value CoC alone. Pitch the deal, they will say pass, Then you move on
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
1y
Yes, I've sold to public entities, you need to have a good product first. There's no special reason to cater to REITs as a buyer--they are nothing special.
Yes, I've sold to public entities, you need to have a good product first. There's no special reason to cater to REITs as a buyer--they are nothing special.
"Good product first", glad you brought this up -- is there a general CoC that would make it appealing, or is it very much individual to the REIT? I would imagine the latter. Just trying to imagine how the email would go: pitch the product, then ask what they're looking for if not?
Yes, I've sold to public entities, you need to have a good product first. There's no special reason to cater to REITs as a buyer--they are nothing special.
"Good product first", glad you brought this up -- is there a general CoC that would make it appealing, or is it very much individual to the REIT? I would imagine the latter. Just trying to imagine how the email would go: pitch the product, then ask what they're looking for if not?
I dont think they heavily value CoC alone. Pitch the deal, they will say pass, Then you move on
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
1y
@Kathy Diamond, I have worked for private companies that sold to REITs. They have their own criteria, like any other buyer. Most public REITs are looking for core, core+ assets. They need stability in cash flow.
So, a target CoC is irrelevant. A national physician group with A+ credit and a long term lease in a major medical hub with next to 0% vacancy will be a great buy to a core REIT, even if the CoC is 5%. Versus a 10% CoC property that sits off the beaten path in a secondary pocket of a tertiary city.
As for connecting with them: list your property with a major brokerage, and they will find it. CBRE, Marcus, Colliers, Cushman, etc. If they want it, they will offer.
Lastly, if you are pitching your deal direct to sellers, REIT or otherwise, there will be a level of desperation in the sale, which they will capture on. These are professional real estate investors. The acquisitions people at major companies tend to have loads of experience and make a lot of money to review deals. They are not going to overpay for anything. In fact, generally speaking, REITs are some of the most conservative buyers in my experiences. So, if your goal is to make the most money from a property sale as you can, I would simply list it for sale on the open market. REITs will see, private buyers will see it, syndicators will see it, and the exposure will ultimately get you the highest price the market will bear.