The purchase and management of institutional-quality commercial real estate assets is a complex business. The transactions can involve a significant amount of money, and the details of the financing structure can be complicated.
For these reasons, it may be beneficial to work with a professional real estate sponsor who will undertake all of the complex activities on the investor’s behalf. This way, individual investors get all of the benefits of commercial real estate ownership without the hassle, expertise, time commitment, or experience needed to purchase it directly.
Not sure what to ask or how to get started? Let these three questions help guide your discussion:
1. What is your level of experience?
The first indication of a good sponsor is one who has a significant amount of commercial real estate investment experience. Ask about their track record and take a look at the combined experience of their leadership team. Ask questions about how many successful transactions they have overseen, or how many successful property sales they have made.
2. Who is on your investment team?
3. What is your investment strategy / what are your investment objectives?
Every real estate investment is slightly different, and investors should seek to work with sponsors whose strategy and objectives align with their own. For example, some sponsors may like to hold an asset for 10 years, while others like to hold them one for three to five. It may be important to find a sponsor whose investment strategy aligns with investors’ own preferences, comfort level and objectives.
Commercial real estate can offer a great portfolio diversification strategy for investors. Finding the right sponsor to work with is an important step to ensure that the investment strategy, objectives and philosophies are aligned with investors’ own.
Interested In Learning More?
First National Realty Partners is one of the real estate industry’s leading private equity commercial real estate investment firms. We leverage our decades of expertise and our available liquidity to find world-class, multi-tenanted assets below intrinsic value. In doing so, we seek to create superior long-term, risk-adjusted returns for our investors while creating strong economic assets for the communities in which we invest.
If you are an Accredited Investor and would like to learn more about our investment opportunities, contact us at (800) 605-4966 or info@fnrpusa.com for more information.
