All Forum Posts by: Phil Christian

Since you are in a major market there are specialized brokers who focus on medical office.  This is what I would do: 

1. Search CoStar/LoopNet for Medical Office Lease Listings and aggregate a list of brokers who have "medical office" listings in your particular sub-market. 

2. Interview only medical office brokers who have a substantial portion of their business from medical office. The more specialized in medical office the better.  The idea is to find out who is "actively speaking to requirements"... not just "running a survey of listings". 

3. During interviews with firms request that a Jr. broker be placed as lead broker.  

4. Ask for a "market" brokerage fee schedule. (Probably 4% of gross to tenant rep and 2% gross to agency broker).

5. Add a $2 per square foot broker bonus to the listing broker and a $2 per square foot broker bonus to a tenant rep broker. 

The reality is no one is motivated to work on a 3,100 sf lease deal in a major market and the people who "seem" interested are only interested because they do no have enough business to focus on (I presume).  You need to incentivize the brokerage community to a) work on your deal b) bring you a tenant c) focus until the deal is completed. If NO ONE is offering a bonus in the Houston Medical Office market the BETTER. 

Here you go: 

If you need to ask about an underwriting model on bigger pockets you're not in the position to buy a "commercial 400 unit multi-family property". 

squarmilner.com

They do a lot of work with real estate companies. 

Sounds like you need to give him and his crew a bonus. 

$325-$400 per unit.  

SoCal. 

Depends, but generally speaking yes go do it as it will open doors for you.  You will earn valuable relationships and will immediately earn credit in your local real estate community.  You're in NJ, adjacent to NY, looking to buy large multifamily.... you're investors, competition & colleagues will appreciate the MSRE.

Unfortunately, lot of people have responded that flip homes in BFE and cannot grasp your situation being in a top 10 market with the idea of executing on large transactions.  

You're most likely not going to get a solid answer to your question.  An appraisal is generated by a human.... humans have opinions, biases, make mistakes, don't care, get busy, etc etc.... could be lower, higher or what you expected. 

What you may want to consider is hiring the BEST local brokerage firm to provide you a BOV based on your completed project with solid back up documentation.  I would suggest to pay the broker to complete the BOV (whatever cost they want within reason... don't cheap out tho).  Guide that broker to provide you a price point that is supportive of your business plan.  When the time comes for the appraisal you will be prepared to have the  conversation with the appraiser and point the (human) in the direction you want him to go. 

We do not do them for our apartment investments but when I was a office broker my company had multiple cost seg professionals.  Candidly, it was a very tough pitch to bring them into the team and honestly it was just another consultant to scare the client. 

This being said, shops like CBRE, C&W or JLL will do a bit of work upfront to let you know if there is any potential savings and then develop a scope/cost from there. 

In my opinion:

Generic Office TI's = No

Entire Office Building/Single Tenant/Large Office Build-Out... 40,000 sf+ = yes

Restaurant Build-Out = yes

General Industrial TI's = No

Industrial TI's w/machinery monuments = yes

Apartment Value Add = No 

Cost Segregation Professionals (not CPA's) but actual Cost Seg/PM's will dig deep into your construction scope (not just $$$ after the money is spent).  Are you screwing (removable personal property) or nailing (building improvements) in artwork? Lighting, is your lighting being built in a manner that it can be considered accent lighting (personal property) or code required lighting (building improvements)? etc. 

The Cost Seg professional will then dissect the construction documents to aggregate the costs associated with the lighting/art/whatever down to the wiring installed. 

Best. 

OP copy and paste the Termination Clause into a reply.  There is most likely more details than provided.  

Here is a very common scenario (not legal language) for office leases: 

One time T Termination Options are commonly provided by LL's on 5 year deals AFTER the 3rd year of tenancy.  T termination fees include all unamortized TI's, legal fees and commissions and "maybe" rent penalties. T shall give LL  six (6) months written notice. Etc, etc, etc