Revenge of the private buyer…
Broker calls in 2025
---- Institutional investor ----
Broker:
"You bid $100M for this asset three years ago. It sold for $105M and the buyer financed it with floating rate money. The lender won't kick the can anymore and is forcing a sale. You interested?"
Investor:
"I'd love to, but I'm focused on shoring up our portfolio and convincing my investors to keep their money with me. I'm out."
---- REIT buyer ----
Broker:
"Remember that deal? It's back, it's going to trade, and it's going to be at a great basis. I know you guys have been active recently so wanted to make sure it's on your radar.
Investor:
"We just can't get to an underwriting that makes sense to wade into A-/B+ product. The capex burn is tough. I'm out."
---- International buyer ----
Voicemail:
"Sorry I missed your call. Please leave a message."
Broker:
"I was just calling to make sure you know that the deal you were interested in a few years ago is back at a much more favorable price. Please give me a call."
[next day]
Voicemail:
"Sorry I missed your call. Please leave a message."
Broker:
"I just wanted to follow up on the asset I mentioned. The owner is under a big floating rate loan and the lender isn't open to future extensions, so I think this is going to trade. You might be able to pick it up 20% lower than your earlier price. Please give me a call."
[two days later]
Voicemail:
"Sorry I missed your call. Please leave a message."
Broker:
"Sorry to be a pest, but I wanted to get this deal on your radar. It's a generational buy. Give me a call buddy."
---- Private buyer ----
Broker:
"Hi this is [broker's name] from [broker's firm]. I saw that you bought a deal late last year, and I wanted to get this one on your radar. Huge discount from where it traded a few years ago, all because the lender is forcing a sale."
Investor:
"Sounds interesting. Can I tour it later this week?"
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