I often write about Signature Group’s acquisition process because I love buying buildings, but this week I’d like to share the other side of the deal: the sale (possibly because we just accomplished quite an impressive one). Due to some external tax opportunities we discovered after owning a small portfolio of apartment units in Queens for a little more than 5 years, we decided to sell.
"And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department." - Andrew Carnegie
We never use brokers to help us source deals on the buy side, but when it comes to selling we really do like to hand it off to them. In this case we used a nonexclusive broker group, gave operating information to a number of those who were interested, and let them compete. We received offers ranging from $15M to $21M. The most persistent broker brought us the best price and terms, and ultimately did the deal.
A big part of our business model is buying right. Of course everyone would agree on this, but it’s important to remember to also focus on sale, structure, and negotiations. We definitely mastered this art on this deal.
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