Multi-tenant Flex Industrial Investing, Grant Reaves @ Stoic Equity Partners

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