Investor Database & Target Buyer Profiles
Our goals for our clients’ sale assignments are to maximize value, exceed market or comparable pricing, and deliver certainty of execution. In order to do so, we give careful consideration to the extensive buyer pool databases that we have developed over many years.
FAMILY OFFICES, RIA, SPONSOR AND GATEKEEPER COMMUNITIES
Our group will seek to expose assets to high net worth investors including family offices in the U.S. and abroad. Included in our database are not only internal representatives of these family offices, but their RIA’s, sponsors selected by RIA’s, and other gatekeepers including law and accounting firms. We often make a consulting fee available paid out of total commissions due to SRS available to any of the above groups, where it is legally and ethically appropriate for them to accept. In addition, our team holds memberships within professional associations and exhibits annually to this audience through IMN & ACG.
REAL-TIME 1031/1033 EXCHANGE – PRIVATE BUYERS
Our group has cultivated a nationwide database of active 1031/1033 exchange buyers. Exchange buyers are highly motivated by tax advantages and aggressively pursue high-quality assets. As a result, they have become a highly sought-after buyer.
UNPARALLELED ACCESS TO WEST COAST-BASED, HIGH NET WORTH PRIVATE INVESTORS AND FAMILY OFFICES
With the platform based in Newport Beach, California, the managing principals of the SRS Newport Beach office have been successfully operating for more than 30 years and have compiled a database of active, repeat West Coast-based investors that are unmatched by any other firm in the U.S.
WEST COAST-BASED PRIVATE INVESTORS
California investors, in particular, pay the most aggressive cap rates compared to any other buyer profile in the U.S. due to highly compressed yields for comparable credits and uses in the California market. If fundamentals are similar, including density and income levels, these investors are often very comfortable making acquisitions in other parts of the U.S. Per CoStar, in 2015 approximately 40% of net-leased retail investment properties sold under a 7.0 cap rate were sold to California-based investors. These investors may likely be in exchanges out of multi-family product or land held for generations that were once used for agricultural purposes and was sold for some form of development or to another farmer.
EAST COAST-BASED PRIVATE INVESTORS
Outside of California-based investors, the largest buyer pools for stabilized net-leased retail product come from New York and Florida, with each state accounting for approximately 10% of national annual transactions. While New York-based investors are commonly exchanging out of apartments or older retail sold to apartment developers, Florida-based investors are often in exchanges out of large tracts of land, as residential construction continues to build momentum in the state.
Foreign demand is driven by currency risk – adjusted alternatives, economic stability, geographic/economic diversification, and generational migration to the U.S., among other factors. As such, foreign Investors, particularly Asian investors, continue to seek real estate investment opportunities in the U.S.
TENANTS IN COMMON/DELAWARE STATUTORY TRUSTS INVESTORS
Tenants in Common (TIC) and Delaware Statutory Trusts (DST) instruments offer private investors with smaller amounts of capital access to value-add and future development.
There has been significant interest in ease-of-management retail product from endowment funds via investment through a private sponsor with a capable track record and management company. Due to the lack of stable alternative investments, this group has targeted high-quality core retail or retail located in top 20 MSAs looking to improve yield performance over the nominal yields offered by underperforming bonds.