The role of a transaction manager is almost always found in residential real estate; no top producing agent or team would be caught without having someone whose focus is coordinating the transactions. However, when it comes to commercial real estate, where arguably the process can be even more detailed and timely, not every group or team has a transaction management department. The role of the transaction manager is extremely important: the focus is not just on coordination but strategy and keeping the deal flow for a secured closing. ™
As an integral component at Shopping Center Advisors, a transaction manager is vital to both the team and deal process. Having a single point of contact helps streamline the process for many of our clients, both private and institutional groups alike. Private individuals and funds find comfort in having a single point of contact who is responsible for the data and information gathering and coordination. A transaction manager role is no stranger for our institutional level clients – many of whom have dedicated managers and departments themselves. Our team is an extension of your in-house acquisitions team.
In many teams, the division of labor is based on each person’s strengths. Those who handle the business development side are focused on increasing sales and relationships. Not every person can be a “jack of all trades.” A transaction manager can help offset the nitty-gritty and detail aspects of a transaction by staying on top of the salient business terms. The business development members can then focus on developing existing and new relationships. In our article,“Don’t Be a Lone Wolf,” Tom Lagos describes the Strategic Coaching program and surrounding yourself with “complementary team members and the results of a strength-focused team.” The manager can be a valuable position. As deals become more complex, the transaction manager can utilize his or her strengths to keep the deal flow focused.
Having great verbal and written communication is essential, as a transaction manager is often communicating across multiple avenues including phone, e-mail, and in-person. The goal of good communication is to manage expectations among the parties, and ensure documents are addressed timely. And in real estate transactions, timing is everything.
Before a property goes to market for disposition, the manager analyzes and oversees the documentation to be gathered. Often this includes abstracting leases, financial review, ARGUS modeling and/or oversight, and makes strategy recommendations based on the review process.
During the marketing process, the transaction manager can be responsible for integrating the documents using platforms such as Real Capital Markets. In our recent article, we share insights on how this platform provides a “War Room” component for uploading and maintaining the pertinent documents to a transaction. This tool is helpful for a transaction manager, who can oversee permission levels of prospective buyers. He or she is also often responsible for putting together data analytics on offers, and drafting counters.
During the due diligence phase, the manager is then responsible for review of the purchase and sale agreement, coordinating the documents among multiple parties including the buyer and seller, and escrow and title. The Secured Close™ is our team’s unique promise of a managed transaction: facilitate clear and direct communication.
We create a detailed reporting and follow-up process that ensures the buyer, seller, and escrow agents are accurately following the purchase and sale instructions while mitigating any issues that might arise. Thereby, this proven process helps us keep all parties aligned during the transaction. While our team often represents the Seller in a transaction, our goal is to create a process where the buyer, seller, and escrow agents are following the purchase and sale instructions while mitigating any issues that arise.
Some states even have a specific role called the “Transaction Broker.” This role mirrors many of the tasks and expectations of a transaction manager. A transaction broker assists the buyer, seller, or both by performing specific roles related to the contract.
While a common role found in many real estate arenas, having a transaction manager has enabled our team to improve both our team process as well as the transaction process – not only for us, but our clients as well. We are therefore able to uniquely service shopping center owners. Whether you own a single shopping center or a portfolio across the nation, the Shopping Center Advisers are ready and able to help you through every step of the process.