talk with you before doing my research?”
I was impressed. Vornado is one of the largest REITs, or Real Estate Investment Trusts, in the country. Within the last few years they had picked up a substantial amount of property in the city.
“I decided on you because you are very trusted within the industry, and your team is well respected. This is what my board needs. We need someone to go in with all the artillery possible. I know you have worked hard to get where you are, but this will take you to a whole new level. I’m giving you the opportunity to make the deal of a lifetime. If nothing else, think of the commission.”
I already had been, since I heard the words “half a billion” dollars. The truth was this would most likely be one of the biggest deals I would close in my life, and we both knew it.
“I should mention, Jonah, that there is a catch.”
“Isn’t there always?”
“We need this deal to close within three weeks.”
“Excuse me?”
“You heard me. Three weeks.”
“Not possible,” I said flatly.
“9/11, Jonah. By sun-up the next morning, American Express had a lease in place for a million square feet in New Jersey.”
“Apples to oranges,” I countered, testing him. “There is a significant difference between leasing space and buying it.”
“It’s all just business, Jonah. It’s all just negotiated terms and money.”
“Not possible,” I said again.
“Why not?”
“Why not? Shit, Andreu, I could drop fifty reasons without pausing.”
“Give me the most significant one.”
“Due diligence. You have no idea how many different exercises there are for a potential buyer to perform the due diligence of a commercial property. Everything from roof inspection to systems evaluations to the property’s code compliance history to zoning—there are more things that need to be checked than you can imagine. That’s why a due diligence period is usually from ninety to a hundred and twenty days. It’s basically a forensic process, and what I’ve just explained is only for a single building. It’s a whole different paradigm for an entire portfolio, one that includes intense dissection and forecasting of inflation, interest, and vacancy rates as well as future construction costs. What you are asking us to complete in three weeks is unheard of.”
“I understand that the due diligence, done correctly, takes a long time. But does it have to take that long—let’s just say—in a perfect world?”
“Where are we going here, Andreu?”
“Please, old friend, humor me.”
Our fresh drinks were placed on the table. I thought for a second, took a nice swallow of my cocktail, and thought for a second more.
“In a Utopian society, I guess not.”
“Why not?”
“Like everything else, the timing issue could probably be cured with money.”
“Explain.”
“Simply put, these people are contractors and salaried employees. People with lives, families, other professional commitments. They are not the types of individuals who are on call twenty-four hours a day, seven days a week like surgeons. You have to remember, it is very hard to get people to really care about entities owned by others. At the end of the day, people only care about what’s theirs.”
“And money talks.” Andreu followed along.
“Exactly. The inspection teams you are talking about retaining would have to be paid a serious premium for their time.”
Andreu cracked a half smirk as he shifted his weight.
“Money is not an issue here, Jonah. We understand that we are creating some—um — trying circumstances, but we also understand that we are going to have to pay for creating such circumstances. All you have to do is get everything lined up.”
Andreu picked up his shot then handed me mine before continuing. “Let me worry about supplying the necessary resources.”
He held up his still full shot glass, and cocked his head as if he was looking for me to toast, validate his words. I wasn’t
I was impressed. Vornado is one of the largest REITs, or Real Estate Investment Trusts, in the country. Within the last few years they had picked up a substantial amount of property in the city.
“I decided on you because you are very trusted within the industry, and your team is well respected. This is what my board needs. We need someone to go in with all the artillery possible. I know you have worked hard to get where you are, but this will take you to a whole new level. I’m giving you the opportunity to make the deal of a lifetime. If nothing else, think of the commission.”
I already had been, since I heard the words “half a billion” dollars. The truth was this would most likely be one of the biggest deals I would close in my life, and we both knew it.
“I should mention, Jonah, that there is a catch.”
“Isn’t there always?”
“We need this deal to close within three weeks.”
“Excuse me?”
“You heard me. Three weeks.”
“Not possible,” I said flatly.
“9/11, Jonah. By sun-up the next morning, American Express had a lease in place for a million square feet in New Jersey.”
“Apples to oranges,” I countered, testing him. “There is a significant difference between leasing space and buying it.”
“It’s all just business, Jonah. It’s all just negotiated terms and money.”
“Not possible,” I said again.
“Why not?”
“Why not? Shit, Andreu, I could drop fifty reasons without pausing.”
“Give me the most significant one.”
“Due diligence. You have no idea how many different exercises there are for a potential buyer to perform the due diligence of a commercial property. Everything from roof inspection to systems evaluations to the property’s code compliance history to zoning—there are more things that need to be checked than you can imagine. That’s why a due diligence period is usually from ninety to a hundred and twenty days. It’s basically a forensic process, and what I’ve just explained is only for a single building. It’s a whole different paradigm for an entire portfolio, one that includes intense dissection and forecasting of inflation, interest, and vacancy rates as well as future construction costs. What you are asking us to complete in three weeks is unheard of.”
“I understand that the due diligence, done correctly, takes a long time. But does it have to take that long—let’s just say—in a perfect world?”
“Where are we going here, Andreu?”
“Please, old friend, humor me.”
Our fresh drinks were placed on the table. I thought for a second, took a nice swallow of my cocktail, and thought for a second more.
“In a Utopian society, I guess not.”
“Why not?”
“Like everything else, the timing issue could probably be cured with money.”
“Explain.”
“Simply put, these people are contractors and salaried employees. People with lives, families, other professional commitments. They are not the types of individuals who are on call twenty-four hours a day, seven days a week like surgeons. You have to remember, it is very hard to get people to really care about entities owned by others. At the end of the day, people only care about what’s theirs.”
“And money talks.” Andreu followed along.
“Exactly. The inspection teams you are talking about retaining would have to be paid a serious premium for their time.”
Andreu cracked a half smirk as he shifted his weight.
“Money is not an issue here, Jonah. We understand that we are creating some—um — trying circumstances, but we also understand that we are going to have to pay for creating such circumstances. All you have to do is get everything lined up.”
Andreu picked up his shot then handed me mine before continuing. “Let me worry about supplying the necessary resources.”
He held up his still full shot glass, and cocked his head as if he was looking for me to toast, validate his words. I wasn’t
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