Specialization Helps Close Deals
- Oct 22, 2009
By: Stan Johnson, Stan Johnson Co.
In most sports, coaches use specialists to deal with pressure situations. In football, for example, they will bring in a slash-type runner on offense to cross the goal line or a pass rusher on defense to sack the quarterback. These specialists have specific skills and in many cases prove to be the difference between victory and defeat.
For those in real estate, and particularly with Stan Johnson Co., specialization is the maxim for those that want to succeed in these trying times and get deals closed, no matter what the size or complexity. Sellers are looking for brokers “that can make it rain”–in other words, that can find hidden opportunities. In our case, the only deals we do are single-tenant net-lease transactions. We have carved a niche in the market where we are known as “The Net Lease Authority™.”
Utilizing a specialist or a group of specialists affords sellers the day-to-day contacts, insights and perspective that brokers in a specific area possess, allowing them to be creative and find opportunities that others may not know exist. Now more than ever, in this recent market, we are seeing the need to find more creative solutions to meet complex problems. Due to our expertise and our knowledge of available single-tenant properties and players across the country, we were able to align the right investor with the most suitable single-tenant property that meets the objectives for everyone.
We have been able to leverage our frequent contacts with active players in the industry. Many off-market deals are initiated as our brokers talk with owners who share that they would indeed sell their property if we found them the right buyer and the right price. Firms that are not actively engaged with the market players and do not frequently communicate with property owners in their particular line of business are unaware of current and future needs that are the source of hidden opportunities. Single-tenant property owners that engage brokerage firms that do not specialize in this niche, or employ a local general real estate agent, cheat themselves of the many benefits a single-tenant specialist can provide.
Another benefit of specialization comes into play with the financing required to make the deal work. Along with our capital markets team, our brokers have the knowledge of available debt and terms today. We have the expertise to assist clients in designing and executing innovative transactional solutions to finance and control their real estate. Our solutions are uniquely designed to achieve specific cash flow and financial statement objectives, promote efficient use of capital and credit resources, and mitigate tax burdens.
The net lease investment property is unique in the fact that the value of the deal involves more than just the real estate. Specialization is extremely beneficial when it comes to other critical elements that go into these deals. A firm that focuses exclusively within the single-tenant industry is much more qualified to understand how the tenant’s credit, comps and key provisions of the lease structure can all affect the potential investor’s interest in a certain asset. A specialist has the knowledge and laser-like focus to know market conditions and other key factors that in the end determine a property’s true value.
In summary, specialization in the net lease niche offers clients the best source of hidden opportunities and the most qualified buyers, the best financing solution and the knowledge and expertise to evaluate the true value of an investment deal.
Stan Johnson is CEO of Stan Johnson Co., a 20-year-old company whose net lease group focuses exclusively on the acquisition, disposition and financing of net-leased real estate.