Alliance Companies - advanced asset sourcing, underwriting, divesting and monetizing focus driven practices for FO | FOA, Corporate and Institutional Clients for 30+ years. Expanding Nationally and Internationally With 181 Offices

Negotiating Record-Breaking Large-Cap Trades: The Success of Alliance

After Dr. Larry Keefauver decided to learn more about the commercial real estate industry, he wrote the book “Negotiating record-breaking large-cap trades.” On deciding whom to interview he said, “I wanted to learn from some of the most successful CRE operators in America, and found a gem in Mr. Shmooze, aka Bret Broaddus of the Alliance Company.”

“Alliance has always sought to meet the client needs in a transaction on multiple fronts, most of which are not compensated for.” – Bret Broaddus in an interview by Dr. Larry Keefauver

Dr. Larry Keefauver went on to interview multiple people to talk about their experiences with different real estate advisors and to describe the most significant real estate properties, their acquisitions, and sales, but Larry Keefauver was most intrigued with Bret Broaddus, and the largest deals ever brokered in history which coincidentally were brokered by Bret Broaddus.

The CRE Big-3

As Dr. Larry Keefauver wrote, “Alliance allows the commercial real estate licensees to call upon, compete for and have the legitimate ability to compete with the “CRE Big-3″ CBRE Inc., JLL (Jones Lang LaSalle IP), Cushman & Wakefield.” Competing with the “CRE Big-3” is a daunting task for almost any licensee, but Alliance proved itself with its strengths including the years of experience and contacts on a national level.

Alliance History

After the transition, which included the Alliance exiting a merger effort with G&E Capital Markets – they ultimately filed for bankruptcy protection – the Alliance platform restructured and launched its re-expansion. With these efforts, Alliance grew even stronger and more prominent throughout the North American real estate market. These efforts turned into profitable results, and now there are more than 150 Alliance offices in North America.

Factors That Lead to Success

Negotiating Record Breaking Large-Cap Trades: The Success of Alliance

Richard Abraham wrote about Bret Broaddus in “Mr. Shmooze.” Mr. Shmooze was known for his business success by selling through relationships, and this was essential to his success. Bret Broaddus and Richard Abraham were colleagues at CBRE (US Commercial Real Estate Services), and Richard Abraham knew Mr. Broaddus as a “giver” and not a “taker” explains Dr. Larry Keefauver in his book.

With Alliance’s way of keeping and gaining contacts, they increased their trade flow with intensive contacts. As Shiraz Poonevala, CIO of the G.P. Group of Companies, said when talking about Asia in particular but including other markets, “The first way to increase deal [trade] flow clearly is to have extensive contacts. … Hence, being in the market and being known and well-connected is of paramount importance.” Alliance actually came up with a formula for success in negotiating, executing and losing record-breaking large capital trades. Watch the video down below to learn more about this.

Largest Single Industrial Asset Trade in Square Feet in History

The largest single asset trade in square feet was the AG Communications divestiture which was 3.42 million square feet, a 131-acre (golf)park development. Initially, it began with AT&T in 1959. Mike Mullen of CenterPoint Properties Trust eventually purchased the asset which was sold by the Alliance TeamOne group.

Political Influences on Real Estate

With the new policies of the Trump Administration, the growth in the commercial real estate market is favored as its an industry familiar to President Trump. Before the nature of these policies were clear, commercial real estate developers were concerned that it would be more difficult or more expensive for them to take out substantial bank loans or that these policies would damage demand in the market. There were concerns about the bill including the emendation of the special tax treatment or that people in the real estate industry would no longer be able to deduct interest expenses from their taxable profits, as can be read in Dr. Larry Keefauver’s new book. Many developers and other businessmen in the real estate industry are thankful for the new policies staying the same.

The CPO Benefits

Alliance provides clients with many benefits such as a personal experience – going above and beyond for clients – and strategies, a national platform and reach, national benefits and purchasing power, and large capital competencies. The national platforms and reach provide benefits a submarket and regional operator cannot offer. The nationwide service coverage and volume in regards to clients, prospects and their own brokerage, analysis and staff making, are just a few of these benefits. Alliance’s national purchasing power offers reduced costs on various products and services to the licensor and its licensee member firms, which can facilitate and expedite sales. Still, the most significant benefit Alliance provides, as can be seen in its brokerage history, is the large capital competencies. Alliance provides commercial real estate licensees the tools to compete for and to have the legitimate ability to compete with the “CRE Big-3.”

To take a look at what Alliance has already accomplished, or if you want to grab the opportunity to work with the company that has brokered the largest asset trades in history, you can find us here.

 

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