Investing in Experience

The Ecosystem of a Deal: A Symphony of Collaboration 

Investment real estate deals involve a network of stakeholders, creating what Stewart Proctor, CCIM, co-managing director of Ciminelli Real Estate Services, calls “the ecosystem of a deal.” From brokers and property managers to the principals, attorneys, contractors, and developers, collaboration is key. “Every transaction requires a team,” Proctor says. “We operate as the quarterback in these situations, ensuring every piece of the puzzle fits together smoothly.”

For instance, Ciminelli recently worked on a quick-serve restaurant project involving franchisee, franchisor, developer, and investors. “The developer, with the broker’s help, identifies the property, enters lease negotiations, executes a lease, acquires the property, and builds it. This is what we call a turnkey build-to-suit,” says J.R. Long, CCIM, co-managing director and Proctor’s business partner for 20 years. “Later, the developer often sells the property to a third-party investor, creating opportunities for the entire ecosystem and widespread economic benefits.”

Metrics of ROI: More Than Just Numbers 

For investors, understanding return on investment (ROI) is essential. “There’s no one-size-fits-all approach to measuring ROI,” Long explains. Metrics like capitalization (CAP) rate, cash-on-cash return, and internal rate of return (IRR) vary depending on investor goals.

“Institutional investors, like pension funds, often accept lower returns for safer investments, while private investors may take higher risks for greater returns,” Proctor adds. “It’s about aligning the investor’s goals with the structure of the deal.”

Owner-Occupant vs. Third-Party Investors: Diverging Priorities 

The priorities of an owner-occupant differ from those of third-party investors. Owner occupants focus on location and functionality to support business operations. “For them, the property is not just an investment—it’s a foundation for their business,” Long notes.

Third-party investors, however, prioritize income streams, tenant creditworthiness, and property appreciation. “They’re buying the revenue stream and the underlying real estate,” Proctor explains, highlighting how lease terms and property selection influence investment value.

Complexity vs. Simplicity: Structuring Deals 

The complexity of a deal depends on the parties involved. “A sophisticated buyer may keep things simple, while a less experienced party might unintentionally overcomplicate the process,” Proctor explains.

Ciminelli’s expertise lies in managing these dynamics. “We balance the needs and expectations of buyers and sellers to ensure a successful transaction,” Long says.

Photos By Erich Martin

The Role of Brokers and Property Managers 

Brokers and property managers play crucial roles in investment real estate. “Brokers bring market knowledge, negotiate deals, and align interests,” Proctor explains. Property managers act as stewards of the asset, ensuring tenant compliance with lease terms and maintaining property value.

“Property management is essential for long-term success,” Long adds. “A good property manager protects the value of the investment.”

Ciminelli’s Edge: Experience Meets Local Expertise 

Ciminelli Real Estate Services is an industry-leading firm with over 23 million square feet of management and leasing assignments nationwide and over $500 million in capital markets transactions. With offices in Florida, New York, Pennsylvania, and Massachusetts, the company delivers tailored solutions for clients’ needs.

In Northwest Florida, Ciminelli operates under the leadership of Long and Proctor. The duo, who launched Proctor & Long Commercial Real Estate in 2004, brought their local expertise to a regional stage by partnering with Ciminelli in 2020. This partnership combines corporate resources with a deep understanding of the Northwest Florida market.

“Our partnership with Ciminelli has given us the support to focus on what we do best—helping our clients succeed,” Proctor says. The firm tackles challenges like zoning regulations, market volatility, and strategic growth with confidence.

Partnering for Success 

Investment real estate is both an art and a science. By understanding the ecosystem of a deal, employing effective ROI metrics, and addressing the unique needs of owner occupants and investors, Ciminelli Real Estate Services positions itself as a trusted industry leader.

“We don’t just close deals—we build relationships and deliver results. That’s the Ciminelli difference,” Long says.

With a blend of local expertise and regional reach, Ciminelli continues to guide clients through the complexities of investment real estate in Florida’s Panhandle and beyond.