how are larger CRE transactions (50M+) being marketed and sold?
I broker off-market properties in the commercial space and the deal sizes have been increasing, I'm at about 5-20M in terms of deal size. This got me thinking how the workload is more about the same regardless of the price, so why not just work on big deals? However, after looking on loopnet, Crexi and CoStar, there aren't many on-market deals above 50m.

Once they reach a certain price point, do investment firms just sell it off-market? I always see news about larger companies completing a $150M acquisition, but not sure where the deals are being done
[{"id": "iksc4mf", "text": "Institutional? Pension funds?", "replies": [], "depth": 1}, {"id": "iksda1b", "text": "Most investment firms that sell those deals have internal e-mail lists. Those deals get blasted to thousands of potential buyers at once, so not necessarily \u201coff-market\u201d but you do need to be on the list. \n\nPretty easy to get on one, just need to talk to the brokers selling those deals, though I doubt they\u2019d want a competing broker seeing their deals.", "replies": [], "depth": 1}, {"id": "iksjkvs", "text": "Literally nothing in my market is sold via listing sites unless its either trash or way over valued, and the deal needs a chump buyer to trade.", "replies": [], "depth": 1}, {"id": "ikslihv", "text": "That stuff goes to investment sales teams at the big brokerage houses (JLL,CBRE, EASTDIL, newmark, berkadia etc) and the brokers set up data rooms and NDAs on either their websites or sites like RCM and send a pitch email with links to their contact list. As an acquisitions person it is my job to be on those lists and its their job to make sure they know me so they can feed me leads. I am not looking at loopnet at all tbh and only occasionally does anything of size pop up on crexi. \n\nIf you go to Cushmans website and look for property sales you will see where they are posting deals. Big sellers virtually require brokers to be at a major brokerage because they require a large enough team with sufficient resources and backing to market the deal as well as a robust client list and market knowledge. A good broker may have 9,000 contact but they know the handful of guys who can and will do each deal and they can give those guys a headsup or early look to make the process smoother for everybody. The seller gets a smoother transaction with a buyer that can close and I dont have to chase the price into the heavens with some group who never could have closed anyway\n\nWe buy $30-$130 million deals.", "replies": [{"id": "iksnt7i", "text": "So a majority of bigger deals are taken to market through larger brokerage firms? Or are they being done off -market?", "replies": [{"id": "iksp0i7", "text": "They are marketed by the big firms. Its not crexi/loopnet or off market. Its on market where its marketed to a wide audience even if that audience is cushmans whole contact list or it is offmarket where the broker sends the materials direct to a group they know. Or off market where the seller and buyer exchange materials directly with no broker involved.", "replies": [{"id": "ikt4p3t", "text": "or occasionally as a pocket listing - not marketed outside the listing brokers office.", "replies": [], "depth": 4}, {"id": "ikvpk2p", "text": "Interesting. I do larger deals ($30m+) in Canada and we have slightly different terminology.\n\nOn-Market: on the website, broadly marketed\nOff-Market: not on the website, only taken to top ~20 logical buyers\nDirect Deal: no broker involved", "replies": [{"id": "ikvwysa", "text": "Its all fast and loose", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ikt2psd", "text": "Where do you usually buy? I'm a Seattle based commercial broker and have been working with a client placing about $120 mil in the area on multifamily. They've passed on a few deals in that range (unit mix is not ideal, too far from core of the city, not brand new construction) and I'm always looking for more buyers!", "replies": [], "depth": 2}, {"id": "iktl0g3", "text": "/thread", "replies": [], "depth": 2}, {"id": "iktm7n5", "text": "Yep, this sums it up nicely. I used to lead marketing for investment sales and have worked deals from $15mm - $150mm. Our process was very similar. Core marketing kit was:\n\n- Offering memorandum\n- Property website w/ document portal \n- Marketing videos for larger deals\n- Emails to investor + broker lists\n- Broker calls to drum up demand\n- More email marketing towards offer deadline\n\nHappy to try and answer any questions over DM.", "replies": [], "depth": 2}, {"id": "iktpx8l", "text": "This is right. I work in the institutional space at a PE shop. Deal flow in this range is more like typical investment banking world. Strong relationships between institutional buyers/partners, sellers, credit providers, brokers/advisors.\n\nThe big brokerage shops have their rain makers who go to pitch owners, provide BOVs, etc. like this guy said - very relationship oriented where deals get done between folks who like working together and provide surety / speed of execution. No one wants to screw the pooch.\n\nI work on the credit side of the business and regularly get calls from the BB IBs and Lifecos who are putting together complex $200M - $1B capital stacks. There aren\u2019t too many seats out there so once you have your network it\u2019s a pretty regular flow of deals to work on.", "replies": [{"id": "il36abx", "text": "How would you recommend breaking into this space as a boutique brokerage beyond the typical prospecting methods?\n\nI\u2019ve had my exposure to a few prior, namely multifamily here in Arizona. So, I\u2019m experienced in negotiating a few of these complex, high dollar volume sales/JV\u2019s. \n\nBut, it all came through personal relationships. Is that usually the way regardless?", "replies": [], "depth": 3}], "depth": 2}, {"id": "ikuh8b9", "text": "Are you then using the same shop for the Capital stack? Or do you use a different shop for that? Is that a conflict of interest?", "replies": [{"id": "ikvbd82", "text": "Only if it helps to get the deal... is that a conflict of interest? Maybe but that is between the seller and their broker", "replies": [{"id": "ikvqfge", "text": "Why wouldn\u2019t you use them regardless? By my old shop we used to have to push people to use our guys, but after moving to the debt side I\u2019m trying to figure out how to pitch buyers to use us instead of the guys in the shop with the listing broker.", "replies": [{"id": "ikvws4y", "text": "Because We have our own debt relationships so no point paying fees if we dont need help filling out the capital stack", "replies": [{"id": "ikw1iq5", "text": "Right, I hear. This is definitely one of the more common responses I hear. I like telling people that we don\u2019t cost a penny unless we make you money, and we keep your current relationships honest. If you were to get pitched by a broker what\u2019s something we could tell you that would open you up to the idea? (Thanks for letting me pick your brain, I just moved over to the debt side and I\u2019m trying to refine my pitch)", "replies": [{"id": "ikwwrf3", "text": "Only reason we would use a debt broker would be if it helped tie up the deal or if all our lenders passed.  Good luck in debt brokerage its a cool niche.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "ikvppsx", "text": "Makes sense to use the same shop - they know the deal the best.", "replies": [{"id": "ikvpxw0", "text": "I mean the investment sales brokers and the Capital markets guys are not the same people, so why is that?", "replies": [{"id": "ilvu1uc", "text": "They are the same in some markets, but maybe that's just a canadian thing.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "ikw21xv", "text": "for debt? or like a capital markets advisory team?", "replies": [{"id": "ikw59ux", "text": "Let\u2019s say debt", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ikvyax4", "text": "To expand on this response, public listing on Costar, Crexi, Loopnet is where deals go to die. Brokers that also deal in this size will often only post it there if they are struggling to find buyers near the sellers price expectations.\n\nAlso as you climb up in size, some experienced brokers will get very competitive at lowering their fees in order to boost their resume and climb up the deal flow charts. It wouldn't be surprising for a seller to pay the same broker fee on $100M or $20M deal.\n\nThe larger the deal, the smaller the buyer list. Some of these deals will get transferred between funds or investors using minimal broker involvement.", "replies": [], "depth": 2}, {"id": "ikvz5le", "text": "Agree, 100% I buy $15-$100m deals.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iksnnq6", "text": "We buy $50-$250M as a very small team, and its just brokers blasting them out to us, we get some off-market deals if its a group we've worked with before, but it depends on how the seller is looking to market the deal. Comparing the deals to more investors going through loopnet, Crexi, ro CoStar you're going to get much more professional OMs with much more macro data.  \n\nWe've looked at selling an asset, but wanted it to be a quiet marketing, so it was only sent out to bigger groups and not put online.", "replies": [{"id": "iksojx8", "text": "95% of what we do is off-market brokerage. Don't blast anything out. Share deals with a handful of groups we know may be interested and are capable buyers - if you want to talk more.", "replies": [{"id": "il1by6k", "text": "How\u2019s it off market if sharing with multiple groups jk? In all seriousness, who are the groups showing up since institutionals are on the sidelines and aggressive syndicators can\u2019t raise and/or leverage. Am at a discretionary multi fund and what we\u2019ve seen is 1) anything near or a $50M equity check is getting massive retraces/not trading with the big dogs sitting out 2) Florida is still incredibly frothy 3) a ton of bridge debt is coming due in the next two years.", "replies": [{"id": "il281lo", "text": "I work with everyone from smaller family offices to publicly listed companies.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iksnojn", "text": "What market are you in?", "replies": [{"id": "iku65gz", "text": "Chicago based but source deals nationwide", "replies": [], "depth": 2}], "depth": 1}, {"id": "ikv564v", "text": "Look up \u201cEastdil Secured OM.\u201d  Hopefully some examples are available.\n\nThey market their deals to the universe of buyers who are capable of taking down a $100+ acquisition.  Those who can already have reputations and a rapport with the brokers who are marketing the deal.  Posting the deal online would not attract additional qualified buyers.", "replies": [], "depth": 1}, {"id": "ikve0rp", "text": "Just closed a +300M$ deal. Completely off-market.", "replies": [{"id": "ikvkt9o", "text": "Could you share more information about the transaction and how it went down? I'm sure the community is interested in hearing more about it", "replies": [], "depth": 2}], "depth": 1}, {"id": "ikvh6dy", "text": "Curious to know what broker commission is for a 5-7 million deal?!  Off topic but any help here is appreciated.  Thanks", "replies": [], "depth": 1}, {"id": "ikvpbpm", "text": "I\u2019m not a broker but an handful of my clients frequently have deals of up to $200 million (usually multi family). I take the photos, videos and virtual tours of those deals. They don\u2019t always go to Costar/Loopnet and the video sometimes stays private so that only people with the link can view it. \nMy clients oftentimes represent both, the seller and the buyer and over 90% of their clients are repeat clients so those clients get the e blast and video link first before the property goes on the market. \nMany of those deals close within 3 months without being broadly advertised.", "replies": [], "depth": 1}]