Now is the phase of the CRE cycle when repositioning success stories are born. Imagine this column five to ten years from now: we’ll be reading about a property that was purchased for a song, underwent transformative repositioning, and achieved an impressive return upon sale. That deal, and others like it, are crossing someone’s desk right now. Unfortunately, these deals come with huge task lists to be worked through during the underwriting process.
This article discusses how savvy CRE investors leverage due diligence advisors to bolster in-house acquisition teams and quickly put brackets around the “wild card” items that could sour projected returns.