Here at Metropolitan Capital Advisors, we get asked all the time by our clients if we broker the sale of commercial property. The answer always has been and will continue to be “No”. Why? Because we want to be the master of one trade. We believe that an inherent conflict of interest arises when you represent both the sale and financing sides of a transaction.
This should be music to the ears of all independent investment sales brokers. We have no desire or aspiration to broker the sale of property. There’s no risk of our firm trying to lure away your client for future investment sales business. For this reason, we often get referred financing assignments from investment sales brokers who do not have the expertise to assist their client with his or her financing needs but nonetheless want to help their clients get the deal done.
So now you’re thinking, “That’s great, and while I’m glad we’re singing kumbaya together, how does this make me a better sales broker?” Simply put, you score big relationship points with your client and help facilitate sales transactions when you can refer your client to a capable source to resolve your client’s pressing financing needs, even more so when you refer them to a dedicated finance firm with a 24-year track record and over $10 billion in closed debt and equity financing assignments. By helping your client to resolve his or her capital need – whether on an acquisition, refinance or disposition – you are creating the opportunity for another sale or purchase assignment today or down the road.
I recently experienced the power of this concept firsthand at a major networking event for independent investment sales brokers. I was asked to address the group in regards to the current state of the financing markets for commercial real estate. After speaking on the morning of the first day, I spent the rest of that day and the following day at the conference networking and answering questions about financing scenarios for various transactions.
I have never had so many people reach out to me on so many deals in such as short amount of time as I did in those two days at the conference. There was quite obviously a major, unfulfilled need for capital markets advice to independent sales brokers trying to work through transactions for their clients. For example, one of the sales brokers presented a $20 million portfolio sale of specialized retail property to the room of 100 other brokers. When asked, “What type of financing can my buyer client expect to get for the acquisition of this portfolio?” the broker paused, thought about it for a second, and then said, “I don’t know. Talk to Justin over there about it.” The terms of the financing for that deal could very well make or break that transaction for the potential buyer.
We don’t claim to be the smartest guys in the room, but we do know one thing well: commercial real estate finance. We help you look smarter by arming you with relevant, real-time capital markets knowledge. We don’t want the investment sales business that you already know much better than we do. Give me or any of the other Senior Directors here at MCA a call to discuss how we might add value to your next sales transaction.