Headquartered in Tampa, Florida, Yellowtail Commercial’s Investment Sales and Capital Markets Team has completed tens of millions of dollars in sales transactions, pushing the company’s team to be among the best and brightest in the industry. Our team features dozens of professionals well versed in the capital markets industry while staying ready and willing to assist our clients in a variety of investment transaction avenues including acquisition, disposition, 1031 exchange, reverse 1031 exchange, NNN, stabilization, and portfolio transactions. Our clients benefit from real time live market data, specialty product expertise, and access to a variety of prospective acquirers and sellers ranging from local investors to regional or national pools of transacting parties. Our product expertise covers all asset types located in every submarket throughout the Tampa Florida region. A sampling of product types we handle include but are not limited to sub-performing portfolios, non-performing portfolios, strategic real estate portfolios, and all facets of one off property opportunities.
Our team focuses on leveraging our depth of market knowledge as well as collaboration techniques amongst our team and our relationships, permitting our client to receive the highest value and most meaningful advice. We confidently say no other teams can match the depth of regional coverage as Yellowtail Commercial. Our collective decades of experience outmatch competing firms as our transactional professionals have executed some of the most notable and challenging transactions in the regional market, both in a one off and a portfolio basis.
Like any of our brokerage assignments, we take a hands on approach to any of our investment transactions. Our process involves a client interview and discussion to understand their goals, needs, and drivers for a decision. Not all clients are the same, but we are here to serve all requirements across the board – both buyer and seller.
Short Term or Long Term Investments
On the sales side, we have seen all seller profiles. Many of our customers are short term owners through a merchant development platform who value timing of a sale as much or more than price, as often-required equity timing thresholds and carrying costs require a streamlined quick process to identify an acquirer and close on an acquisition to permit the seller to meet their own obligations while also successfully satisfying their equity partners and meeting their own internal expectations. Other clients of ours have complex long term generational ownership challenges which require a property basis and tax solution as much as a good price or an able buyer. Through our internal and external resources, we can identify the best possible avenue for a sale transaction whether that is a traditional approach or one involving another avenue such as a 1031 tax deferred exchange. Alternatively we often transact on traditional buy – sell arrangements in a market standard approach. We have the ability to satisfy any and all of the above needs. The key is a depth of understanding of the client, the asset, and of the market.
When it comes to an investment transaction, market data is key. Oftentimes a real estate investment transaction is not only competing with other prospective real estate transactions but also the broader investment market such as stocks, bonds, ETF’s, mutual funds, private investments, etc. Tracking all of these avenues is key, and we have the support staff to do so. Oftentimes we are asked – should I acquire this single tenant retail pad, a multi-tenant property, or just place my funds in a safe and secure bond? The choice is always the clients, however the client needs to be thoughtfully educated on their options for us to bring true value to the evaluation process. We strive to do so on every transaction.
The recent covid-19 international pandemic has been a sharp reminder that we need to over analyze any and all transactions so our clients are present in the best possible real estate avenues. In order to best educate our clients, we stay up to date on the variety of pieces that make up the puzzle of any investment transaction.
We might as well open up an office in some of our local banks based on how often we speak to local lenders. From an investment standpoint, liquidity and the cost of leverage drive these markets as much as any other items. Staying up to date on lending options, rates, programs, and availabilities is a 24/7 job and our team clocks in on a daily basis.
Knowing the Investment Market
Market prices continually change on a local and national basis. We are here to track and provide the education needed for all parties. As a seller, you must be up to date on your competitors. If a prospect is considering acquiring your investment piece of real estate, odds are they are exploring all possible avenues in and out of market. Knowledge is power and knowing your competitive set is powerful to your success as well as the effectiveness of your negotiation tactics. What is for sale locally and regionally competitive to our project? How strong are their tenants? How does our site compare? How many options are in the market? All of these items are of paramount importance to any seller. These same questions present themselves from a Buyer’s standpoint as well. No stone will remain unturned for property options for a purchaser client of ours to consider. Our clients on both sides of the transaction rest easy knowing the decisions they are making are educated.
In addition, we pride ourselves in understanding market rates on sale prices, leases, etc. None of our clients should overpay for a property and none of our clients should be compensated below market for their properties. Real estate is a difficult enough business and difficult to transact. All of that effort should never go to waste without a financial benefit.
Analyzing all aspects of a transaction are what we do. People often forget that there are differentiators in contracts, which come into emphasis in investment real estate. Owners of investment properties prefer the least amount of headaches possible. Through our lease analysis program, we will advise our clients as to the benefits and challenges present in each lease contract. We may not be trained attorneys, but we are in market enough to be able to know what property owners like and dislike from investment real estate. This item cannot be stressed enough. Lease structure differences, such as an Absolute NNN lease as opposed to a NN lease, can change property valuations by millions. Even nuances such as do I have to process and pay the tax bill or will the tenant process and pay the tax bill? Can include or exclude prospective parties from an interest in a piece of real estate.
One Stop Resource for Investors
At Yellowtail we deal with all aspects of real estate: sales, acquisitions, leasing, vacant real estate, and investment real estate. This presence throughout the three hundred and sixty degrees of commercial real estate allows us to resourcefully obtain information on other real estate industry items which directly affect investment real estate. Notably – occupancy rates, comparable local vacancies, in market active lease data etc. As part of our process, we include our transactional professional team in related real estate avenues to provide our clients with a wider net of resources. This information justifies including or excluding transactions at any given time. Our process has consistently yielded the highest prices and most effective transactions for our clients.
The investment sales / capital markets niche is continuing to remain very active, profitable, and growing despite the ebbs and flows of recent macroeconomic activity. There is a combination of factors that have fueled this continuation of activity, including historically low interest rates, reduced vacancy, rental growth following years of stagnation, fiscal policy, and large amount of capital looking to be placed. This diversification of economic drivers has kept our team confident and focused on the long term resilience of this asset class.
The largest challenge many acquirers face today is differentiating between acquisition opportunities both in one off and portfolio acquisitions. From a portfolio perspective, sellers love the tactic of selling the vinegar with the wine – including trophy assets with struggling less desirable assets to pool together the appearance of a Class A portfolio. Our team will decipher the winning assets from the losing assets through our evaluation techniques so our clients are not stuck acquiring challenged illiquid real estate that will be a problem down the road. Having the right advisory team behind you is key to understanding the position and risk, both near and long term, for any assets being considered for an acquisition. While bidding for properties can often be a competitive process, the correct advisory team will advise their clients where to spend their time and how to effectively execute on an acquisition in a competitive environment. Competition is a good thing is it justifies the market as well as acquisitions to be both lenders and investors.
The largest challenge many seller face today is the lack of attention through ineffective marketing. Too many brokerage firms do not pick up the phone and advertise, they expect the deals to come to them. Unfortunately this is not how it works. Even the highest level trophy assets require a detailed diligent sales process to generate the best and highest price for a property. Additionally, there is a tendency in the market to incorrectly educate prospective purchasers by not highlighting the appropriate attributes to each property. Not at all properties are the same and the buyer needs to be made aware of why each asset we sell is in the best position to exceed going forward. With each property we will assemble market and site specific data as well as assemble marketing collateral such as brochures, photos, plans, etc that will easily articulate the property in the most effective light. We will make it easy for the buyer to buyer. Competition is also a challenge. With the digitization of the real estate world, investment properties often compete on a local and national level with other investment properties. It is easier now than ever to digitally view, compare, and analyze properties. In addition any property is only a short plane ride away almost anywhere in the country. In this climate, each property must be differentiated from the others. Emphasizing why us? is more important than any other time. As your advisory team we have access to data across all markets to allow you to be educated on any and all competitors. We will know what will make a particular project more attractive – whether it is traffic exposure, lease strength, or local tenancy. Give us a call, and we will walk you through our marketing process as well as provide samples for your review and consideration. We appreciate our client base and look forward to continuing to expand on that.
Our investment team has transacted on the following real estate types, among others:
- Housing Portfolios
- Commercial Portfolios
- Specialty Real Estate