Overview of Buyer Representation Services
Purchasing commercial property can be an arduous, time-consuming process but we will assist you to make the acqusition proceed efficiently and smoothly.
Whether you want to purchase a property for your own retail, office or industrial use or you want to purchase income-producing property for investment, we are uniquely qualified to represent you and/or your company.
We do NOT ever represent both the Seller and the Buyer in a sale transaction as we never act as a dual agent. We exclusively represent Buyers’ so that their best interests are our sole focus. We are the Buyer’s advocate and our fiduciary obligation remains soley to the Buyer.
The following is a typical description of the steps and timeline required for the purchase of a multi-tenant, income-producing property. Please note that these are estimates and every sale transaction is unique. If you would like an estimated description of the acquistion steps and an estimated timeline for a specific type of property, please contact us and we will be happy to provide you with the information you need.
The Purchase Process and Typical Timeline
We will discuss your goals with you and provide you with alternatives to achieve them. Whether it is purchasing an existing property, a property currently under construction or even developing your own building, we have the experience and expertise to assist you in determining which option is best for you so that you may achieve your goals.
Once we have determined your acquisition criteria, we will survey the market to locate potential acquisition candidates. We have access to online property databases, relationships with property owners and contacts with other commercial brokers that will enable us to compile the largest number of potential properties that you may be interested in considering for purchase. We will submit the inventory of potential acquisition candidates to you with our advice as to which ones we believe are the most appropriate based upon your acquisition criteria.
A financial and economic analysis of the selected properties will be prepared by us and submitted to you for your review. You will then be able to determine whether or not each property satisfies your acquisition/investment criteria.
We will schedule a tour and physical inspection of each of the properties which meets your approval based upon the financial and economic analysis. At the conclusion of this step in the process, you will be able to select the property which best meets your needs that you want to pursue for acquistion.
We will prepare a Letter of Intent to Purchase pursuant to your instructions and submit it to the Seller or the Seller’s Representative, as the case may be. If you would like your attorney involved in this part of the acquisition process, we welcome his/her participation and input. The Letter of Intent to Purchase will be in compliance with your acquisition criteria and will only be submitted to the Seller or Seller’s Rep after your have approved the document. Your best interests are our paramount concern and the Letter of Intent to Purchase will be negotiated professionally and aggressively to protect your interests.
After the Letter of Intent to Purchase has been agreed upon and executed by the Buyer and Seller, the Sale Contract will then be drafted and negotiated. It is advisable that you have competent legal counsel particpate in the drafting and negotiation of the Sale Contract to insure that your legal interests are protected. We welcome the participation of your attorney and will work with him/her to insure that the Sale Contract drafting and negotiating process is completed in an orderly manner and on a timely basis. Once a mutually agreed upon Sale Contract has been executed by both the Buyer and Seller, the earnest money will be deposited at the selected Title Insurance Company and Escrow will be opened.
The type and size of the property will determine how substantive the Due Diligence process will be. The following is a list of the basic due dilgence required for any commercial property acquisition regardless of size or type:
- Phase I Environmental Assessment
- Survey of Property
- Review of Title Insurance Commitment
- Examination of Property Records
- Review of all Leases, Contracts, Rent Rolls & Financial Information
We will assist and guide you through the Due Diligence process. We have long-term relationships with inspectors, engineers, surveyors, architects, contractors, etc. and we will furnish you with the names of qualified parties from which can select vendors to complete the required Due Diligence items.
The financing of the property will begin shortly after the opening of Escrow. Various lenders will be contacted to determine the source of the loan that offers the most attractive terms to meet your needs. A Loan Commitment won’t be issued by the lender until the entire Loan Submission Package has been completed and submitted to the Lender for approval. Since some items of Due Diligence may take up to 60 days to complete, it is possible that the Loan Commitment will not be issued by the lender until up to 60 -90 days after the opening of Escrow. We will assist you in the entire financing process and advise you so that you may secure financing on terms and conditions that meet your needs.
Dependent upon the size of the property, the Close of Escrow will normally take place approximately 30 days after the issuance of the Loan Commitment and acceptance of the Loan Commitment by the Buyer. We will coordinate the transmittal of all closing documents to the selected Title Company and insure an orderly, efficient Close of Escrow.
After the Close of Escrow, we will assist in the turnover of the property from the Seller and coordinate the transfer of all property documents, contracts, keys, etc. so that there is a seamless transition from the Seller to you.
As you can see, a typical commercial property sale transaction from the start of the process to the Close of Escrow entails a 4 to 6 month period. If you are purchasing a vacant, foreclosed property for cash, the time period could be as short as 2 to 3 months. At the other extreme, if you are purchasing vacant commercial land that requires rezoning and you are planning on developing your own building, the entire process could take 12 to 24 months from the start of the process to the date the building will be completed and available for occupancy.
Please contact us for a no cost, obligation discussion of your particular circumstances and we will be happy to provide you with specific information to assist you in achieving your goals.