Flexible Staffing Supports Historic Portfolio Acquisitions

Challenge

Commercial real estate transaction volume reached a 15-year high in 2021. With an abundance of capital and low interest rates, fueled by consumer demand and soaring vaccination rates, growth in industrial, multifamily, and health care real estate exceeded market expectations. These factors created a competitive environment for investors and lenders, resulting in a surge in large, complex, multistate portfolio transactions.

Solution

Portfolio transactions involve extensive diligence that needs to be reviewed in an efficient, thorough, responsive, and cost-effective manner, and often under aggressive timeframes, particularly in today’s lively transactional market.

For our institutional clients, Seyfarth’s Real Estate Due Diligence Hub provided the customized, tailored approach that each transaction required, employing a team of skilled attorneys and paralegals solely focused on title, survey, zoning, authority, and lease review for transactions ranging from 25 properties to more than 2,000 properties in multiple states. Coupled with Seyfarth’s technology, this approach provided cost predictability, certainty of execution for our clients, and confidence that there was a robust team of attorneys  and paralegals tracking and managing the due diligence to meet aggressive deal timelines and budget considerations. 

Result

With assistance from Seyfarth’s Due Diligence Hub, our clients successfully closed some of the largest portfolio transactions across a number of asset classes. These transactions are too numerous to list, but include:

• A $1.6 billion recapitalization and financing of two industrial portfolios of 50+ total assets in eight states. Seyfarth served as lead diligence counsel and local counsel in several states.
• A $585 million recapitalization and financing of industrial portfolios of 40+ total assets in nine states. Seyfarth served as lead diligence counsel and local counsel in several states.
• A $171 million loan for a 33-property portfolio mix of office, industrial, and retail properties located in California and Nevada.
• The formation of a joint venture to acquire and own  a portfolio of 27 medical office building properties in 13 states, the acquisition by the venture of the 27 medical office building properties, the direct acquisition by the client of two life science properties, and the related mortgage financing of the properties.
• A $250 million loan for a 12-property portfolio of assisted living and memory care centers located in California and Nevada.
• The formation of a joint venture with an operating partner and the related due diligence for and acquisition of a portfolio of 11 medical office buildings in six states, including separate mortgage loan assumptions (with five separate lenders) for all of the properties.