Commercial Real Estate Acquisition

In the world of commercial real estate, many times, it’s not the agent, broker or business person that closes the deal. Sometimes that responsibility is given to the lawyer. Adam Hochfelder is experienced real estate executive, with first hand insight in the real estate industry. According to him, in order to be effective at closing, first and foremost, you must know the ins-and-outs of the deal. This means you must know the conditions and requirements, as well as the contractual obligations.

Checklist discussions should be performed to confirm that the closing items are being progressed by the responsible parties for completion at closing. If kept simple and organized, with the help of a closing checklist, even the most complex commercial real estate acquisition can be a piece of cake.

When it comes to funding at closing, failure is not an option. That’s why Adam Hochfelder advises to determine funding requirements and cut-offs early. The amount is usually subjected to adjustments for operating expenses. Disbursements on the other hand are identifiable once the responsibility for the associated closing cost has been allocated. The parties then need to prepare and finalize as their earliest convenience, a proration statement for amount of funds and a closing statement for funding disbursements.

Another tip that Hochfelder shares is to act, or be ready to act aggressively, by making closing arrangements in advance. Closing commercial real estate acquisitions requires great efforts. It is up to the lawyers to make sure that no detail, big or small, is forgotten. So always double check and ensure that you have check availability of signatories, and check availability of decision makers. Also make sure bank accounts are set up. Ensure transactions instructions are delivered and funding is prepared and ready. Most importantly don’t forget governmental approvals and filing requirements.

Third parties are not that interested in the transaction, so you need to keep them informed. In any real estate transaction there are a number of third-party closing deliverables. The closing game plan should keep all parties informed and think beforehand about the potential issues that could arise.

Adam Hochfelder’s reputation and relationships with commercial acquisition brokers, lenders and business owners has created a setting for strong deal flow and successful execution outcome.

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