July 23, 2020

Live Real Estate Mastermind: How are Multiple Asset Classes Performing

38 minutes

For the first time ever, we recorded our monthly Mastermind Call with several experienced real estate investors across multiple asset classes. Joining us in this month's mastermind were Beth Azor, Victor Menasce, Andrew Lanoie, Todd Sulzinger, Christian Cascone, RK Kliebenstein. Each investor shares what they are currently going through in their specific situation, market, and asset class.

Watch the entire recording here: https://youtu.be/-HUUIv1hDmA

Read the entire transcript here: https://rb.gy/frif7o

Steff Boldrini, Retail, Self Storage

San Francisco is a ghost town. Nobody wants to quarantine in four walls with no access to work at a coffee shop or in common areas of their buildings. There are deals in the rental space that are completely unheard of and we would have never imagined they would be happening like one to two months off, and as much as 30% rent decrease.

Andrew Lanoie, Mobile Home Parks

In general have been down a little bit, not too bad. A lot of parts of our business have have been frozen, we sent our construction company home. And as everyone knows, some of the lending dried up a little bit, some lenders are back, and some stayed the same through all this. We're just figuring out how to get back into acquisition mode, and all of the Capex and all the projects and things that we have in our world for our portfolio.

Todd Sulzinger, Mobile Home Parks

In our parks, we've had some struggles with collections as well, I have parks in Georgia and Tennessee and we've had more issues with collections in Georgia. It has been a combination of some tenants who were affected by COVID related situations where they lost their jobs due to the pandemic. And in those situations, we reached out to them and said, If you actually were then please fill out this form, and get proof from your employer that your job was affected by the pandemic. In other cases, we've had people really take advantage of the fact that the courts have been closed.

Beth Azor, Retail

I own six retail shopping centers, we've had a ton of retail bankruptcies from Tuesday Morning, Pier One, Ascena is about to file, 24 Hour Fitness, GNC Gold's Gym, Starbucks will close 400 stores. The national dealmaking will be on hold until 2021 because of the inability to travel, anyone that owns shopping centers looking to fill retail space in the next 6-9months, will be focusing on local and regional players.

Victor Menasce, Developer

We are making some progress on getting debt for new construction and even some equity as well. It's tougher than it was. We're not doing anything in retail or office, thankfully. But in the multi-family and senior housing asset classes, we are able to find both debt and equity. For the moment, it appears as though rent collections in multi-family are pretty strong.

RK Kliebenstein, Self Storage

Our industry has always been regarded as recession resilient. Delinquency is now hovering somewhere between 5 and 7%. We look at it as not being devastating, but certainly as being cautionary. When money from the Cares Act runs out that will be a better tell.

Christian Cascone, Developer, Multi-Family

The market just has gotten too unpredictable at this point. There's capital being injected in the wrong places and we feel like it's causing some problems as far as the free market is essentially dead at this point. We're trying to see if there's going to be some opportunities down the road for high quality assets and great locations in the US, 12-18 months from now. We're seeing opportunity zones get hot again, as people have huge capital gains that they're able to deploy into,

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