How to maximize your commercial real estate portfolio

Building up a commercial real estate portfolio is one thing, maximizing its value is another. Many sponsors don't have a portfolio mentality as they view their commercial real estate portfolio as an assembly of a number of different indvidual assets as opposed to a true operating portfolio.

The ability to optomize financial engineering at every level of the capital structure is greatly enhanced when you consider all assets in the portfolio as opposed to individual one-off transactions. In fact, financing assets without taking into account the ramifications on the overall portfolio is a critical mistake that many sponsors make.

Understanding not only how to unlock the trapped-equity in a portfolio, but how to pool assets for trading, create operating lines for acquistion and how to lower overall cost of funds are just of few of the things that can be acheived by working at the portfolio level as opposed to the individual asset level.

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085