The CRE Deal Process: From Origination to Closing

Sunlit skyscrapers, representing the dynamic process of CRE deals from origination to closing


Commercial Real Estate (CRE) investment involves intricate processes that can be daunting for both new and seasoned investors. A standardized deal process ensures efficiency and clarity from origination to closing. Here’s an overview of each step in this journey, explaining the path from identifying a potential investment to finalizing the transaction.


The deal begins with sourcing, where investment opportunities are identified through brokers or off-market channels. Upon interest, a confidentiality agreement is signed, granting access to detailed marketing materials like the teaser and offering memorandum (OM), which provide comprehensive details about the potential investment.

Underwriting & First Bid

Investors perform a thorough financial analysis and market research to determine the viability of the deal. If the initial findings are positive, a letter of intent (LOI) is submitted, outlining the non-binding terms of the prospective deal.

PSA & Due Diligence

Post-LOI, the negotiation enters a more definitive phase with the drafting of the purchase and sale agreement (PSA). The PSA solidifies the deal's terms, leading to due diligence: a meticulous verification process of the property’s financial and physical status to confirm the investment’s soundness.


The closing phase is where everything comes together. Final lender financing is secured, the title report is agreed upon, and all necessary documents are signed. The funds are then released from the escrow to the seller, marking the official transfer of ownership.

Throughout each phase, from origination to closing, the investor's understanding of market trends, financing costs, and economic indicators are crucial for a successful acquisition.

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