A considered path
to a sale.

Put the alternatives on one schedule.

Sell today

Estimate proceeds after loan payoff, prepayment charges, transaction costs and agreed credits. Apply the ownership waterfall separately to understand what each partner would receive.

Hold through a milestone

Choose an observable event: concession burn-off, delivery of a final building or completion of a roof program. Estimate interim distributions or capital calls and the net proceeds at a later sale. Test a slower path as well.

Refinance and retain

Compare achievable loan proceeds with the existing payoff, financing costs and required reserves. If the refinance requires an equity contribution, confirm who can fund it and whether the revised distributions meet ownership objectives.

Decide who should see the opportunity.

A direct approach can answer whether an identified buyer will meet a specific price and timeline. A targeted competitive process can test demand across multiple qualified groups. The appropriate scope depends on confidentiality, the quality of the buyer pool and the evidence ownership or its partners need before approving a sale.

Prepare a first-pass diligence file.

Use the checklist to plan the initial review. Mark items as you go. Selections reset when the page reloads.

Explain the variances before buyers ask.

Put both bids on an equivalent basis.

Illustrative bids for the same property. Both assume a $30 million payoff, $500,000 of other seller costs and no interim distributions. The later closing requires $120,000 of additional net cash support from ownership. That amount is specific to this example.

¹ Sale proceeds less the stated payoff, costs and additional cash support. Deposits are credited to price at closing.

Read the conditions behind the price.

Equity and authority

Confirm the source of equity, the required signatories, the status of investment committee approval and whether the sponsor can commit the full purchase price.

Deposit and diligence

Compare the initial deposit, timing and amount of any increase, refundability, exceptions and extension payments. A large deposit offers limited protection while broad termination rights remain.

Debt and timing

Separate assumption of existing financing from new financing. Identify lender deliverables, estimated fees, payoff mechanics, outside dates and who bears the cost of an extension.