Why Choose Black Diamond Realty? We are The Experts

Could you imagine going to the top of a 10,000-foot mountain in shorts and a t-shirt to attempt your very first ski run?  That experience would be chilling and potentially dangerous to your health without the proper equipment and experience.  Navigating a challenging commercial real estate deal can have similar consequences to your long-term financial health.  Just like a mogul on the slopes, real estate deal challenges require swift problem solving and action to successfully navigate the course. 

Full-time commercial real estate agents have market knowledge, deal mechanic experience and essential specialty contacts to avoid and navigate the moguls of the commercial real estate world.  Attempting to “save a few bucks” on real estate fees may be tempting for some, but often results in a more costly and frustrating end.  Traversing the path without experience and proper equipment is risky, so make sure one of your success strategies is teaming up with the right commercial real estate firm to help you navigate a successful deal.

Two recent examples of deals, filled with moguls and challenges, are highlighted below.  Spoiler alert: the deal that secured a west coast, 1031 buyer for a second-generation industrial building navigated their moguls with a commercial real estate team of experts.

Example I

Black Diamond Realty received a call from an owner who bought a multifamily property roughly 18 months prior to the conversation.  Black Diamond had no involvement in that decision/deal.  The investor leveraged most of their personal home’s equity to purchase the multifamily property.  The assets were located in a strong submarket but the history and ongoing operations were challenging.  Since purchasing, the property owner explained they had battled rent delinquency, criminal activity and property damage.  Performance was weak.  Deferred maintenance was abundant.  The tenant situation was challenging.   

BDR was asked if they could sell the asset for around the same value that the current owner paid.  As part of its due diligence practices, BDR prefers to review three years of profit and loss statements and a current rent roll.  Utilizing the income approach to valuing assets, the BDR team can relatively quickly determine a value range they feel is achievable based on current market and property-specific dynamics.  After receiving financials, BDR respectfully explained they overpaid and that the current market could not bear their valuation.  Black Diamond Realty declined marketing this property.

Example II

A long-time client charged Black Diamond Realty with finding a tenant for their recently vacated industrial building.  BDR designed a comprehensive professional marketing flyer then maximized exposure via all commercial real estate digital platforms, including its company newsletter (current audience ~6,200).  The BDR team proactively reached out to companies who previously expressed interest in similar-size assets and brainstormed end users then pursued them.  After entertaining about a dozen tours, the team found the right fit – a company with over 100 locations willing to sign a 5-year lease.   

BDR team members led conversations and negotiations on tenant build-out, including amortizing cost over the initial term of the lease.  The seller had a long-standing CRE attorney relationship in this case, but BDR typically supports that step as well.  BDR reviewed the draft lease and corresponding tenant comments with their client and after several months, secured a 5-year lease with a well-respected company.   

Due to other projects and the desire to redeploy capital, the client mobilized BDR immediately to sell the 5-year lease to an investor.  Following the same marketing process, the asset was presented as an investment opportunity.  BDR secured a 1031, west coast buyer and worked with their broker to navigate questions and concerns throughout the due diligence process.  In the end, all parties achieved their goals.

Don’t navigate the slopes alone.  Trust the experts.  Reach out to Black Diamond today to equip yourself with professional experience, tools, and service for your next deal.  The BDR team will provide the advice, contacts, and market knowledge to successfully navigate your next black diamond (ad)venture.  Cheers to continued economic growth in a changing investment landscape!