All Forum Posts by: Sas S.

Thanks Joel. This info was very helpul and much appreciated.

Joel,

Thanks for your reply.

I know this depends on a lot of factors, but 2% seems high...that would be $6.6 million in commissions for 6-9 months of work. In my experience, commissions for an individual property (~$35 million) are well below 1%, so I'd expect a further discount for a portfolio sale.

Assume seller cap rate expectations for the market are reasonable and values are generally trending upwards as NOI improves...but cap rates are relatively stable. Good quality product in secondary markets.

My gut tells me 20bps - 40bps ($660k - $1.32mm), plus expenses, but this is very wide range and is just a hunch on my part. Would you consider that to be low for the amount of work involved?

Thanks again.

Hi,

I know this is a question that doesn't have a simple answer, but I'm trying to find out what a "reasonable" broker fee (from the Seller's perspective) would be for a large multifamily portfolio.

Assume about a dozen Class A properties valued at about $330 million in the South. What would a reasonable fee be if this were marketed and sold as a portfolio to one buyer?

A range of values is fine...I'm just hoping to get some context.

Thanks!
Pano