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Transaction Advisory

Definitive leaders in real estate
research for over 30 years


Advised over $40 billion in transactions

Green Street leverages its deep knowledge of capital markets and real estate to provide actionable, independent advice on complex real estate-related transactions.

We advise clients on transactions when they are exploring, evaluating, or completing a potential acquisition or strategic sale. We are particularly well suited to advise on transactions involving operating partnership (OP) units. Other areas of focus include:

  • Analyzing the historical performance and current operating fundamentals of a property sector and/or operating platform
  • Evaluating the pricing in the private and public markets
  • Assessing the quality of the portfolio being acquired or sold
  • Initiating a comparative analysis of the portfolio strategy
  • Completing a valuation of the operating company, REIT, and/or the real estate portfolio

Transaction Advisory - GGP Bankruptcy Case Study


The client

An $120+ billion employee retirement fund

Property Sector: Retail


Deal Size

Portfolio Size

$500 million

$35 billion high-quality retail portfolio (as part of the GGP bankruptcy)

Situation

The client, one of the largest and most successful U.S. pension funds, was underinvested in the retail sector and considering taking a stake in a large mall owner operating under bankruptcy protection. The client needed:

  • An estimate for the current and potential value of the portfolio and the company
  • An independent assessment of the merits of an investment with particular attention to the risks assumed
  • Advice on the best terms given the funds desirability as a long-term investor within the context of a complex and fluid restructuring process

Our solution

Results

Green Street’s Advisory & Consulting team evaluated the client's portfolio, analyzing each property using our proprietary mall database and warranted pricing model. The team provided estimates of value for the retail portfolio as a going concern and in a liquidation scenario. We found that the underlying value of the assets would substantially protect the client’s investment even if the company did not quickly emerge from bankruptcy. Green Street also estimated the value of the company as a whole under various scenarios based upon current pricing in a market with very limited transaction information. Finally, the team offered the client independent advice on how to most effectively negotiate for maximum return.

In exchange for its investment, the client received equity in the reorganized company at a 25 percent discount to the prior day’s stock price. The client confirmed that the investment yielded substantial returns as the company emerged from bankruptcy.

Transaction Advisory Case Study


The client

An $85+ billion employee retirement fund

Property Sector: Retail


Deal Size

Portfolio Size

$1.0 billion

$3.0 billion high-quality retail operator

Situation

The client was partnered with three large institutional investors in a retail real estate operator. One of the partners was exploring a liquidation of its equity stake. As a result, our client wanted to evaluate its alternatives, including acquiring the selling partner’s stake, selling its stake alongside the selling partner, or maintaining its non-controlling existing position alongside a new partner.

Our solution

Results

The engagement focused on providing the client with estimates of value for the retail portfolio in a REIT valuation context. Green Street provided an asset and entity-level valuation under various strategic options, analyzed potential execution alternatives and their associated risks and benefits, and made a set of recommendations.

The client’s partner sold its ownership stake to a private equity sponsor at a price in-line with Green Street’s estimate of value.