BIG 5 SPORTING GOODS - NEXT

In the first half of 2006, interest rates jumped between 80 and 100 basis points and cap rates were coming under pressure. Deals were falling out of escrow as buyers’ expectations changed and sellers remained steadfast in their pricing. This free standing retail property was taken to market in June of 2006 at a 6.5 cap rate and sold at a 6.6 cap rate in approximately 75 days after receiving multiple offers by virtue of the Sperry Van Ness exclusive and extensive marketing approach. Tom’s approach of proactively soliciting outside broker cooperation was critical to finding the best offer in the marketplace. As it turned out, an outside broker procured the best offer for Tom’s client and she in turn earned 50% of the commission. Unfortunately, proactively seeking outside broker cooperation and offering a 50/50 split of the real estate commission is the exception, not the rule as it relates to investment sales. Had Tom not engaged in this extensive and proactive marketing campaign, would his client have received “the best” offer on his property? (Click on SVN Difference for more details).