Real Angle: Building Success in Commercial Real Estate

Jackson Stith, principal at Maverick Capital, discusses land development in the Rio Grande Valley. The region is experiencing population growth and economic development, making it an attractive market for real estate. Maverick Capital focuses on land development projects, primarily in the form of multi-family housing. They conduct extensive due diligence before acquiring land and then proceed with site planning, utility installation, and establishing the necessary legal frameworks. Stith emphasizes the importance of understanding the local market and catering to the specific needs and preferences of the residents. He also discusses the potential for amenities to enhance the value proposition of their projects. In this conversation, Jackson Stith discusses his experience in land development in Mexico. He talks about the amenities that work well in the region, such as playgrounds and pools, and the target buyers for rental properties and townhouses. Stith explains the flow of the development process, from builders leasing up the properties to selling them to investors. He also shares the secret sauce of his success, which includes understanding the market thoroughly, maximizing land efficiency, and problem-solving. Stith discusses his funding strategy, which involves using his own cash upfront and raising money on a deal-by-deal basis. He also shares his vision for the future, including expanding into vertical development and capitalizing on the growing market opportunities in Mexico.

Keywords

land development, Rio Grande Valley, population growth, economic development, multi-family housing, due diligence, site planning, utilities, legal frameworks, amenities, land development, Mexico, amenities, rental properties, townhouses, target buyers, development process, funding strategy, vertical development, market opportunities

Chapters

00:00 Introduction and Overview of Maverick Capital

In this episode, Josh discusses medical office investing with Joseph Caltabiano, founder and CEO of Healing Realty Trust. HRT is a REIT that acquires medical office buildings and adds psychedelic-assisted therapy clinics as vacancies arise. Remote work has not disrupted medical office buildings and continues performing well. The REIT structure provides transparency and aligns the interests of the operating side and investors. The value-added strategy involves expanding the infrastructure for psychedelic-assisted therapy, which is a growing and evolving field. The company targets properties in suburban areas near hospitals and focuses on stable revenue streams from long-term therapy. Their long-term goal is to scale up and eventually create a public opportunity.

Keywords Healing Realty Trust, REIT, medical office buildings, psychedelic-assisted therapy, value-add strategy, suburban areas, stable revenue streams, scale up, public opportunity

Chapters

00:00 Introduction and Overview

05:09 The Benefits of the REIT Structure

07:24 The Potential of Psychedelic-Assisted Therapy

13:12 Targeting Suburban Areas for Stable Revenue

19:45 Scaling Up and Creating a Public Opportunity

23:13 The Disrupted Cap Rates of Medical Office Buildings

26:31 The Bipartisan Acceptance of Mental Health

Frank Rohde, Founder and CEO of Ownify, explains a unique alternative to rent-to-own structures. Ownify is an alternative to traditional mortgages for first-time home buyers. It allows buyers to purchase homes and build equity without incurring debt. The homes are fractionalized into 10,000 bricks, which are membership interests in an LLC that holds title to the home. Buyers contribute a 2% down payment, while Onify contributes 98% of the bricks. Over a five-year program, buyers pay rent and gradually buy more bricks, eventually reaching 10% ownership. At the end of the program, buyers can use their equity to obtain a traditional mortgage and purchase the home from the LLC.

Keywords Ownify, alternative mortgage, first-time home buyers, fractional ownership, down payment, equity, rental income, home price appreciation

Chapters

00:00 Introduction to Ownify

03:22 How Ownify Works: Building Equity Without Debt

14:56 Buying the Home and Future Market Value

19:24 Balancing Investors and Buyers

26:39 Maintenance and Repairs

Roger Krulak, founder and president of Fullstack Modular, discusses modular construction and its benefits. Fullstack Modular is a fully volumetric design manufacturer system for mid to high-rise buildings. They have built the tallest modular building in the world, hotels, affordable housing, and student housing. They have factories in Connecticut and Portland, allowing them to serve both the East Coast and West Coast. Modular construction offers faster construction, less neighborhood disruption, and cost savings through economies of scale. Fullstack Modular aims to be part of the development team and drive the product through the factory to level out the volatility of the development cycle.

Keywords modular construction, Fullstack Modular, volumetric design, mid-rise buildings, high-rise buildings, tallest modular building, hotels, affordable housing, student housing, factories, East Coast, West Coast, faster construction, cost savings, economies of scale, development team, volatility

Chapters

00:00 Introduction to Fullstack Modular

03:48 Benefits of Modular Construction

06:34 Industrialization in Construction

10:49 Becoming Part of the Development Team

13:08 Modular Construction in the Market

18:13 Adoption of Offsite Construction

21:22 Collaboration with Building Trades

24:02 Limitations of Modular Construction

25:12 Applications of Modular Construction

In this conversation, Joshua Kahr speaks with Michael Berne of MJB Consulting about the state of the retail market and trends. They discuss the role of MJB Consulting in helping clients understand the realistic retail expectations for their projects. They also explore the influence of retail on site planning and space planning and the importance of understanding psychographics in retail. They touch on the impact of the pandemic on retail and the resilience of brick-and-mortar stores. Finally, they discuss the future trends in retail, including the growth of experiential retail and the success of off-price retailers.

www.consultmjb.com (for consulting)

www.michaeljberne.com (for speaking and writing)

Keywords retail market, trends, MJB Consulting, realistic retail expectations, site planning, space planning, psychographics, pandemic impact, brick-and-mortar stores, experiential retail, off-price retailers

Chapters

00:00 Introduction and Overview

02:02 Role of MJB Consulting in Retail

03:23 Influence of Retail on Site Planning

05:59 Psychographics in Retail

10:02 Resilience of Brick-and-Mortar Stores

In this conversation, Joshua Kahr speaks with Sam Hales of SG Communities about mobile home parks and manufactured communities. They discuss the reasons why Sam got into mobile home parks, the challenges of finding product, the lack of new park development, and the perception problem associated with mobile home parks. They also touch on the financing and investor relations aspects of the business. Sam mentions that they are currently considering the future direction of Saratoga Group, whether to continue with syndication or explore other options. Sam Hales, CEO of Saratoga Group, discusses the mobile home park industry and the growth of his organization. He shares his focus on providing stability for residents and employees and building a career path for his team. Sam talks about the challenges of running a family business and the importance of having consistent rules for all employees. He also shares a surprising anecdote about a manager burning down a clubhouse on the morning of a closing. The conversation ends with a discussion about the current market and the increase in activity in the real estate industry.

Keywords mobile home parks, manufactured communities, product availability, new development, perception problem, financing, investor relations, syndication, mobile home parks, growth, stability, career path, family business, rules, surprising anecdote, market activity

Chapters 00:00 Introduction and Setting

02:30 Recession Resistance and Perception Problem

05:11 Zoning and Approvals for New Parks

07:06 Housing Crisis and Perception Problem

09:03 Changing Perception through Upgrades

11:41 Refinancing with Fannie Mae or Freddie Mac

14:11 Considerations for the Future of Saratoga Group

22:48 Surprising Anecdote: Manager Burns Down Clubhouse

31:04 Increased Market Activity in Real Estate

In this conversation, Joshua Kahr and Howard Altshuler discuss the state of the accounting industry and the Fort Worth real estate market. They explore the growth and opportunities in the Fort Worth area, the impact of the pandemic on the office market, and the strategic growth of accounting firms through acquisitions and private equity investments. The conversation covers various topics related to the accounting profession, including talent acquisition, education requirements, the impact of AI, and the culture of accounting firms. Howard Altshuler shares insights on the challenges and opportunities in the accounting industry, as well as the importance of company culture and talent development.

Keywords

accounting industry, Fort Worth real estate market, office market, growth, acquisitions, private equity investments, accounting, talent acquisition, education requirements, AI impact, company culture, talent development

Chapters

00:00 Growth and Opportunities in Other Markets

15:06 Strategic Growth of Accounting Firms

20:11 Navigating Talent Acquisition in the Accounting Profession

25:00 Education Requirements and Challenges 30:42 The Impact of AI on Accounting: Uncertainty and Potential

Grant Reaves, Managing Director and Co-Founder of Stoic Equity Partners, discusses the industrial real estate market. Stoic primarily invests in multi-tenant flex industrial properties in the Southeast region of the United States. They focus on secondary markets that offer in-place yield and potential for rent growth. The demand for flex industrial space is high, with a variety of tenants including home services businesses, pharmaceutical companies, general contractors, and more. Stoic follows a value-add strategy, acquiring properties with varying degrees of stabilization and pushing rents to increase returns. They have recently launched a fund to raise equity for their acquisitions. Grant Reaves and Joshua Kahr discuss their experiences in the real estate industry and the growth of their firms. They talk about the importance of remaining humble and working well with partners. Grant shares the story of how he and his partner Jeremy Friedman started working together and their different backgrounds in investment banking and home building. They discuss the evolution of their firm and their plans for future funds. Grant also shares a funny story about discovering people living in one of their self-storage units. They talk about the importance of marketing and building relationships with investors.

Keywords

industrial real estate, flex industrial, secondary markets, in-place yield, rent growth, value-add strategy, fund, real estate, growth, partnership, investment banking, home building, fund, syndication, marketing, investors

Takeaways

Stoic Equity Partners invests in multi-tenant flex industrial properties in the Southeast region of the United States.

They focus on secondary markets that offer in-place yield and potential for rent growth.

Flex industrial properties have a variety of tenants, including home services businesses, pharmaceutical companies, and general contractors.

Stoic follows a value-add strategy, acquiring properties with varying degrees of stabilization and pushing rents to increase returns.

They have recently launched a fund to raise equity for their acquisitions. Remaining humble and working well with partners is important in the real estate industry.

Building relationships with investors and marketing through various channels is crucial for raising funds.

The evolution of a firm often involves starting with friends and family, then moving to syndication, working with family offices, and eventually launching a fund.

Putting out content and showcasing expertise through blogs, videos, and podcasts can help attract investors.

Flexibility and problem-solving skills are valuable assets in the real estate business.

The internet has made it easier to raise funds and connect with investors from different locations.

Finding the right investors who align with the firm's vision is key to long-term success.

Documenting everything on social media can have unintended consequences and impact one's reputation.

Selling and convincing are important skills in both brokerage and fund management.

Keeping things simple and not overcomplicating deals is crucial in the real estate industry. 

Chapters

00:00 Introduction and Background

02:10 Investing in Multi-Tenant Flex Industrial Properties

04:59 The Diversity of Tenants in Flex Industrial

10:00 Trends and Outlook for the Industrial Market

12:53 Value-Add Strategy in Industrial Real Estate

14:55 Stoic's Approach to Property Management

20:11 The Evolution from Syndication to Fund Management

23:03 Attracting Investors through Content Marketing and Relationship Building

In this conversation, Joshua Kahr speaks with Maxwell Wu, CEO of Fulcrum Lending, about their lending business in the multifamily space. They discuss Fulcrum's high-leverage lending approach, their transition from being a correspondent for Freddie and Fannie to a balance sheet lender, and the importance of technology in their operations. They also touch on the current market dynamics, the future of gap financing, and Fulcrum's growth plans.

Keywords

multifamily lending, high leverage lending, balance sheet lender, technology, market dynamics, gap financing, growth plans

Takeaways

Fulcrum Lending is a high leverage lender in the multifamily space, offering loans with a 1.0 debt service coverage ratio (DSCR) and up to 75% loan-to-value (LTV) ratios.

They started as a correspondent for Freddie and Fannie but transitioned to a balance sheet lender due to rate increases and the need for gap financing.

Fulcrum uses their proprietary technology platform to quickly evaluate deals and make data-driven lending decisions.

The current market conditions, including the increase in money supply, suggest that the window for gap financing will continue for another 18 months to two years.

Fulcrum's future plans include expanding their footprint on the West Coast and Southeast, offering their own loan products, and focusing on being the best in the multifamily space.

Chapters

00:00 Introduction and Background

03:00 The Role of Technology in Lending

07:06 Lending Terms and Leverage Levels

09:05 Efficiency and Speed in the Lending Process

11:13 The Importance of In-Person Meetings

22:45 The Window for Gap Financing

26:25 The Impact of Money Supply on the Market

30:06 Fulcrum's Vision for Growth

In this conversation, Josh Kahr speaks with Alex Vitenas about land development. They discuss the process of land development in Texas, including tax foreclosures and auctions. Alex shares his experience in purchasing distressed assets and flipping properties. He also talks about his funding strategies and the importance of finding the right deals. Alex highlights the success he has had with subdividing land and selling the parcels individually. Alexander Vitenas discusses his strategy of utilizing leverage to acquire properties and pay off debt quickly. He shares his approach of accumulating cash and then using leverage to do acquisitions. He also talks about the benefits of delayed gratification and the challenges of analyzing a large number of deals. Vitenas explains his decision to focus on finding the best deals rather than a specific neighborhood and the importance of being able to quickly identify the highest potential opportunities. He also shares a story about a challenging property purchase and the legal issues he faced.

Takeaways

• Land development in Texas involves tax foreclosures and auctions. 

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Chapters 00:00 Land Development in Texas 11:45 Finding the Right Deals and Focusing on Specific Areas 22:26 The Benefits of Delayed Gratification 29:11 Navigating Legal Issues in Property Purchases