SAN FRANCISCO—Private equity firms are flush with cash and challenging historical wisdom in the investment process. With traditional methods unattractive and numerous national chains popping up, the growing interest in restaurants and retailers among private equity firms is a common investing theme.
Tom Mullaney, founding partner with lease and debt restructuring firm Huntley, Mullaney, Spargo & Sullivan Inc. tells GlobeSt.com: “There is a lot of money looking for homes. Distressed debt firms are changing their charters and increasingly investing in restaurants and retailers.”
Moreover, private equity firms are finding that preplanning before a possible acquisition can have a significant, positive impact on the bottom line. Due diligence can ensure a purchase price is justified in terms of industry standards or reveal hidden value that can increase a bid for an asset. When deciding whether to invest, astute firms are drilling into real estate leases, says Mullaney.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
