On Monday, May 13, the ULI Young Leaders Group hosted its fourth and final Real Estate 101 event of the season. The discussion focused on “Exiting the Deal” and numerous topics specific to the topic. The event gave attendees an overview of the important steps to follow and questions to consider when exiting a real estate project. The final event featured a panel of industry professionals, including Brian Grant, Nicole Brickhouse, Bob Dean and Chuck Schilke.

The panel discussion was dynamic and audience engagement was robust. Members of the panel shared helpful and impactful advice backed by their many years of experience:

Bob Dean, Senior Vice President at CBRE, a broker on the panel advised that successful exiting deal starts with first “buying it right.” Exiting a deal starts with upfront planning long before the exit transaction is completed. The closing process can be long and arduous, but it is imperative for brokers to careful vet potential buyers throughout the transaction. This process is vital to ensuring a successful close for both the seller and buyer.

Brian Grant, First Vice President at Equity Residential, told the audience to “properly assess the risks” with every transaction. Understanding the current and future state of the real estate market is key when exiting a deal. The goals of a firm, public or private, will dictate its exit strategy for a project. Brian also mentioned that owners should think about the worst-case scenarios that can impact the earning margins of a deal.

Nicole Brickhouse, Vice President at Walker and Dunlap, advised the audience to look for flexibility during the lending process. Flexible financing terms allows an owner to exit or refinance transaction a project before a projected hold period. As a lender, Nicole and her firm underwrites a potential deal as if “it were our own.” Sellers and buyers should not only think about the upsides of a deal but be conservative in underwriting a deal. Ultimately the project must successfully deliver returns for the lender and other financial stakeholders.

Chuck Schlike, Director at George Washington University, shared his legal experience and his vast legal transaction knowledge. It is imperative to have a great relationship with a title expert throughout the transaction. The pitfalls for proper title conveyance are many and having insurance helps if problems were to occur. Before closing on a transaction, thorough environmental due diligence should be completed to avoid retroactive liability and financial loss.

Some parting words from the panel include: 1) build strong industry relationships, 2) understand the current and future market conditions, timing of a deal is very important, and 3) work with extraordinary people because they ultimately make the deal happen.

The audience asked directed and thought-provoking and direct questions that contributed to a lively conversation. The members of the RE 101 committee, will like to thank the audience and panel members for their participation throughout the four-part “To Afraid to Ask” series.