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  • Writer's pictureRealFacts Editorial Team

4 Strategies for Successful Portfolio Acquisitions


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When acquiring commercial real estate the stakes are high, and the pressure cooker of portfolio transactions can be overwhelming. Imagine dealing with a hundred sites, each with its own set of reports, stakeholders, and potential pitfalls. It's a daunting task, but with the right strategies, it's not insurmountable.


Single-source solution: One of the keys to managing the complexity of a portfolio acquisition is to streamline the due diligence process. With hundreds of reports required, having a single provider for all aspects of due diligence is crucial. This ensures consistency across reports and saves valuable time by eliminating the need to coordinate between multiple vendors. Whether it's property condition assessments, environmental site assessments, zoning reports, or ALTA surveys, having a single provider simplifies the process and keeps everything on track.


Geography matters: Another important factor to consider is the geographic spread of the portfolio. Whether it's concentrated in one region or spread across the globe, having a due diligence consultant with local resources is invaluable. Local staff are familiar with unique local requirements and regulations, saving both time and money. Zoning codes vary widely by jurisdiction, so having local expertise can significantly ensure compliance and avoid delays.


Designated, experienced portfolio team: When it comes to large portfolio transactions, experience matters. That's why working with a due diligence consultant with a designated team of experts with experience in portfolio transactions is essential. This team will conduct a thorough review of each site, identifying any potential issues early on and strategizing the most effective approach. By combining site visits and ensuring proper staffing, they can streamline the process and address any challenges proactively. For example, in a recent portfolio of auto service centers, the team identified sites with environmental concerns early in the process, allowing the client to address them without delaying the transaction.


Proactive Problem-Solving: Finally, proactive problem-solving is key to a successful portfolio acquisition. If issues arise during site visits, it's crucial to communicate them immediately and take action to resolve them. Whether it's a structural issue or an environmental concern, addressing it promptly can save both time and money. For example, when a roof assessor identified potential structural stress during a site visit, the team quickly brought in a structural engineer, saving the client $400,000 in necessary repairs.


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