No two real estate deals look the same. That’s why it’s essential that you work closely with your legal department and a trusted real estate advisor to navigate the stages of a successful commercial real estate acquisition strategy.
As part of our team’s CRE acquisition strategy blog series, we’ve discussed how to: establish your CRE project strategy and selection criteria, conduct CRE market research and screening, secure decision support, and conduct leveraged negotiations with property owners and their agents.
Now, it’s time for you to close the deal properly. The more thorough the RFP and business negotiations are, the more smoothly the negotiations and legal documentation, whether a lease or purchase, should flow.
Overall, the objective of the closing stage is to ensure that the spirit of the negotiations lives past the negotiations phase and is correctly described in the lease or in a purchase closing process. Allegro Real Estate Brokers & Advisors helps clients navigate the complexities of properly preparing and closing a deal.
Though each deal is different, every transaction should follow a familiar formula to ensure the closing process is performed correctly, and that nothing is left unaddressed.
6 Steps of the Closing Stage and How Allegro Helps
Closing any transaction can present challenges, especially if you handle the process alone. However, there are steps you can take to not only make the closing process easier, but also ensure that all necessary closing and documentation actions have been taken.
Step 1: Prepare Final Documentation
Ensuring that your documentation is flawless is essential. Look to a real estate advisor to assist you and your counsel in the review and/or preparation of final transaction documentation to ensure no business detail is neglected.
Step 2: Coordinate Details with Involved Parties
Every transaction involves multiple parties, including some who have not been involved in portions of the acquisition process. At Allegro, our team coordinates real estate transaction closing activities in conjunction with your counsel (and title company in the case of purchases) to ensure a proper closing. Clear communication is key throughout this step.
Step 3: Ensure Document Compliance
Each facet of the closing process must be given the attention to detail it requires. Ensure contract document compliance by performing due diligence, adhering to all obligations, contingency periods, and other key considerations.
Step 4: Send Internal and External Announcements
Consider securing support with distributing internal announcements and controlling external communications when it comes time to share details on labor, timing, and any other relevant news related to your real estate acquisition.
Step 5: Execute Final Documents
With a real estate advisor, be sure to see your transaction through to the end. Our team coordinates the final execution of documents by all parties to complete the transaction.
Step 6: Transition Property to Buyer
Once all documentation is complete, our team ensures that the physical space is in control of the tenant or purchaser. We manage the final possession transition and property turnover to the tenant or buyer, officially closing the transaction.
5 Steps of Construction Management Closing
Construction management is a slightly different endeavor than closing a transaction for an existing property, and so the process requires adjusted advisory assistance to successfully complete the transaction.
Step 1: Review Documents
During the construction management closing stage, there are many factors to consider—none of which are easy without experienced guidance. At Allegro, our team assists you in the preparation or review of final transaction documentation to ensure all details are in line with pertinent laws.
Step 2: Coordinate Transaction
Communication between all relevant parties is essential. Similar to an existing property transaction, our team coordinates the real estate transaction and government incentive agreements with all involved parties.
Step 3: Send Announcements
Reputation and the distribution of information, like a new addition to your real estate portfolio, matter. At Allegro, we help facilitate any public announcements with sensitivities to internal/external public relations, labor, and timing of these announcements.
Step 4: Execute Final Documents
Our team coordinates the execution of final documents by all parties in the transaction, ensuring that no business term goes unaddressed.
Step 5: Transition to Construction Management Team
Whether the conclusion requires facility upgrades or is built-to-suit, we facilitate a smooth transition of your project to the construction management team.
No matter the scope of your transaction, Allegro ensures that all deal terms previously negotiated are included in the final lease agreement or purchase. We see to it that the lease agreement reflects all other steps in the tenant process.
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