Business and hospitality lawyer Mitch Miller shares lessons learned as expert speaker at recent industry conference on practical acquisition strategies
Palo Alto, Calif. (PRWEB) August 27, 2011
Even in this challenging environment for real estate transactions, there are proven strategies that are emerging for commercial real estate investors competing for deals, according to Mitch Miller, principal of the Miller Law Group, a Palo Alto, Calif.-based business and hospitality law firm.
Miller was recently the moderator of a panel discussion at the Lodging Hospitality’s Midwest Lodging Investment Summit in Chicago. Miller’s featured session – “REITville vs. Reality” – focused on how commercial real estate investors can try to make sense out of the transaction market, focused on where valuations are heading and where they may be buying opportunities.
“The major Real Estate Investment Trusts (REITs) have a significant competitive advantage in the marketplace right now. Their capital structure allows them to acquire commercial properties that entrepreneurs simply can’t afford to purchase given the returns on investment,” explained Miller. “For example, most REITs only need yields of five to eight percent on their properties, while entrepreneurs need closer to a 12 to 15 percent unleveraged yield to remain profitable.”
Despite this complex and challenging environment, Miller’s California business law firm has been working with buyers and sellers of commercial real estate to find creative approaches for putting deals together. He identified the following strategies:
1. Determine an acquisition budget
2. Define the market(s) in which you want to invest
3. Reach out to the top lenders in those markets and identify troubled assets for sale
4. Contact banks that have acquired other failed institutions from an FDIC seizure and identify troubled assets on their new books
5. Find properties tied up in the nearest federal bankruptcy court and investigate which ones are available for purchase
“These types of approaches require hard work and thorough due diligence on the part of investors, but they are the viable avenues for getting well priced deals done in the current environment,” said Miller.
About the Miller Law Group
Mitch Miller is the founder of the Miller Law Group, a full-service hospitality law firm representing hotel owners and management companies throughout the United States. Mr. Miller is also a member of the Franchise Law Committee of the California State Bar Association. For more information about the firm visit millerlg.com, or contact Mr. Miller at 650-566-2290 or mmiller(at)millerlg(dot)com
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