I have a $250m hotel for sale… how do I sell it

[Matt Bickham]

I need an end buyer for a $250m hotel in NY apprised at $275m. It’s a great deal, and I’m luck to get to work on it, but I have no idea how to find someone to buy that. Thanks!

[Jim Pellerin]

What do you mean, " you have a property for sale". 

Do you have an exclusive agreement with the seller?

[Matt Bickham]

Quote from @Jim Pellerin:

What do you mean, " you have a property for sale". 

Do you have an exclusive agreement with the seller?

The property is under contract, and I am apart of the team of people searching for a buyer. 

[Karen Margrave]

That's a huge deal to be working on and not knowing what you're doing. Your best bet is to find someone that understands deals of that magnitude, and knows the hospitality industry. 

[Chris Seveney]

@Matt Bickham

Get a commercial real estate agent.

[Bonnie Griffin Kaake]

Quote from @Matt Bickham:

I need an end buyer for a $250m hotel in NY apprised at $275m. It’s a great deal, and I’m luck to get to work on it, but I have no idea how to find someone to buy that. Thanks!

Matt, keep an open mind. I am seeing many hotels being converted to rentals due to the demand for rental housing. This is considered a "change in use" and there are many hoops to go through but can be very profitable for the investors. And, of course, the buyer is going to want to do a cost segregation study at the right time to increase their cash flow and reduce their taxes upfront. 

[Jim Pellerin]

Quote from @Matt Bickham:

Quote from @Jim Pellerin:

What do you mean, " you have a property for sale". 

Do you have an exclusive agreement with the seller?

The property is under contract, and I am apart of the team of people searching for a buyer. 

Sorry to sound cynical but I get a lot of requests from people trying to sell larger properties such as MFUs and Hotels. I have a large list from 1 "rep" with 50+ hotels for example. Btw, I represent private equity firms looking for these larger deals.

What type of contract do you have in place? Is it a Purchase and Sale Agreement? So you are looking to assign the contract? Or is it a listing agreement? Or is it a marketing agreement? Or is it a buyer's representation agreement? Also, is this property off-market.

[Jerryll Noorden]

Quote from @Matt Bickham:

Quote from @Jim Pellerin:

What do you mean, " you have a property for sale". 

Do you have an exclusive agreement with the seller?

The property is under contract, and I am apart of the team of people searching for a buyer. 

Not my intention to be negative here but...

The property shouldn't be under contract when you have no idea to get it done.

The job of a wholesaler is to provide solutions to the  sellers problem. It is not fair to the seller to put it under contract without having a solid exit strategy... UNLESS you explained to the seller that you don't yet have a solution and you will find one and seller OK'ed it.

Damage is done. it is what it is... so in order to still give some value...

I would indeed get in touch with some big commercial real estate brokerages and see what can be done. But to find a cash buyer for that... will be hard... not impossible... but hard.

Good luck man.

[Bud Gaffney]

@Matt Bickham rolls eyes.

[Jenny Perron]

@Chris Seveney. Yes! Definitely get a Commercial Real Estate Agent with Experience! 

[Jenny Perron]

If you get an experienced commercial agent ( not a residential one) they have access to many many platforms and buyers they can connect to. I would do it for you but I'm in LA so i cant :( but you have a great property it will sell with the right help!

[Jonathan R McLaughlin]

@Matt Bickham you aren’t talking to individual people at this level you are talking to funds: private equity, real estate, med-big family offices. Some private developers with those connections.

You don’t walk in off the street with these guys with a “good deal”

And I think there are firms that specialize in conversions like these, especially lately. Check out the names of companies in colliers quarterly reports for your region for instance.

Assuming u r part of a larger group here? Pitchbook, market analysis, etc?

[Jay Hinrichs]

Quote from @Jonathan R McLaughlin:

@Matt Bickham you aren’t talking to individual people at this level you are talking to funds: private equity, real estate, med-big family offices. Some private developers with those connections.

You don’t walk in off the street with these guys with a “good deal”

And I think there are firms that specialize in conversions like these, especially lately. Check out the names of companies in colliers quarterly reports for your region for instance.

Assuming u r part of a larger group here? Pitchbook, market analysis, etc?

 this reminds me of my earlier years when I had what I thought was an interesting play in Northern CA..  And i got a connection to investment group in Hong Kong.. I flew to Hong Kong from SF was amazed that I got to see the head of said group at my young age :)  I even bought a suit and shoes in Hong Kong before i went to the meeting Cut my hair etc. He was nice enough to see me for 10 minutes Says we like SF but we only work with X Y Z and names top ten firms in the US..  I suppose something like this could happen. but transactions at that level happen between principals and very established commercial brokerages.   Kind of reminds me of the joker broker note guys all saying they are direct to some 50 million dollar note package .

[Chris Seveney]

Quote from @Jay Hinrichs:

Quote from @Jonathan R McLaughlin:

@Matt Bickham you aren’t talking to individual people at this level you are talking to funds: private equity, real estate, med-big family offices. Some private developers with those connections.

You don’t walk in off the street with these guys with a “good deal”

And I think there are firms that specialize in conversions like these, especially lately. Check out the names of companies in colliers quarterly reports for your region for instance.

Assuming u r part of a larger group here? Pitchbook, market analysis, etc?

 this reminds me of my earlier years when I had what I thought was an interesting play in Northern CA..  And i got a connection to investment group in Hong Kong.. I flew to Hong Kong from SF was amazed that I got to see the head of said group at my young age :)  I even bought a suit and shoes in Hong Kong before i went to the meeting Cut my hair etc. He was nice enough to see me for 10 minutes Says we like SF but we only work with X Y Z and names top ten firms in the US..  I suppose something like this could happen. but transactions at that level happen between principals and very established commercial brokerages.   Kind of reminds me of the joker broker note guys all saying they are direct to some 50 million dollar note package .

Ha. I had someone yesterday on FB post that they are looking for note deals $100M+. This person did not know the difference between a note and mortgage. When I told them I only do deals above $1B they asked me where they could learn about notes.... 

[Jonathan R McLaughlin]

@Jay Hinrichs awesome. I worked on some non real estate international stuff at a young age and my boss sent me to korea and hong kong and said "come back well dressed" First nice suits I didn't borrow :) elkhorn buttons, working buttonholes, tailor made shirts...I was styling :) and it was maybe $500 for all that. Barely fit on my new credit cards :)

[Jay Hinrichs]

Quote from @Jonathan R McLaughlin:

@Jay Hinrichs awesome. I worked on some non real estate international stuff at a young age and my boss sent me to korea and hong kong and said "come back well dressed" First nice suits I didn't borrow :) elkhorn buttons, working buttonholes, tailor made shirts...I was styling :) and it was maybe $500 for all that. Barely fit on my new credit cards :)

 my first custom leather shoes is what i remember the most.. plus things done there business wise at warp speed.. pretty cool .  I was working on a land play.. And housing in N. CA wine country.

the first thing they told me is they dont buy wood structures ONLY concrete :)  they invest for the long haul.. and then the land they had was in prime SF bay area locations that were uber valuable N. CA wine country was just coming into play I was 10 years to soon on that one. 

[Louis Zameryka]

@Matt Bickham if there is one thing you don’t want to buy as a hotel investor it’s a NY hotel.

DM me if you are really in a jam and I’ll consider what I might be able to do to help.

[Account Closed]

@Matt Bickham Can you explain what you mean by “under contract” and what role is “your team” playing in this transaction?