Real Angle: Building Success in Commercial Real Estate

Building a Vertically Integrated Real Estate Company in New Orleans, Michael Merideth @ VPG Enterprise

Michael Merideth, CEO of VPG Enterprise, discusses his journey with Joshua Kahr in real estate and the growth of his company. VPG Enterprise is a vertically integrated real estate company based in New Orleans, specializing in affordable housing. Michael started investing in small rental properties in 2011 and has since grown the company to include institutional and affordable housing developments. The company has also expanded geographically, working on federal projects in Miami, Texas, Arkansas, and Oklahoma. Michael's vision for the future is to become a billion-dollar real estate company with a focus on more stable and less risky projects.
Takeaways
VPG Enterprise is a vertically integrated real estate company based in New Orleans, specializing in affordable housing. 
Michael started investing in small rental properties in 2011 and has since grown the company to include institutional and affordable housing developments. 
The company has expanded geographically, working on federal projects in Miami, Texas, Arkansas, and Oklahoma. 
Michael's vision for the future is to become a billion-dollar real estate company with a focus on more stable and less risky projects.
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Chapters 00:00 Introduction and Background 01:15 Building a Vertically Integrated Real Estate Company in New Orleans 13:28 The Vision for the Future: Becoming a Billion-Dollar Real Estate Company

Benchmarking Performance, with Norman Miller, Professor Emeritus at the University of San Diego

In this conversation, Joshua Kahr and Norman Miller, a professor emeritus at the University of San Diego, discuss various aspects of real estate investment. He explains the evolution of family offices and the challenges of benchmarking in real estate. Miller emphasizes the importance of long-term thinking and net present value in investment decisions. He also highlights the significance of storytelling and track records in the industry. Additionally, Miller discusses the role of risk, branding, and niche segments in real estate investment. He concludes by expressing optimism about the future of the real estate market.
Takeaways
Real estate investment requires a long-term perspective and a focus on net present value rather than short-term gains. 
Storytelling and track records play a crucial role in attracting investors and building credibility in the real estate industry. 
Benchmarking in real estate can be challenging due to the lack of public data and the diversity of property types. 
Investors should consider the risk-adjusted returns and the financing strategies when evaluating real estate investments. 
Niche segments, such as data centers and self-storage, offer promising opportunities for real estate investors.
 
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Chapters 00:00 Introduction and Background 01:27 The Evolution of Family Offices 03:43 Challenges of Benchmarking in Real Estate 05:36 Determining the Right Level of Risk in Real Estate Investing 07:23 Internal Rate of Return (IRR) vs. Net Present Value (NPV) 09:17 The Importance of Storytelling in Real Estate Investment 10:28 The Challenge of Measuring Success in Real Estate 13:18 The Role of Risk in Real Estate Investment 14:17 The Importance of Track Records in Real Estate Investment 19:14 The Value of Branding in Real Estate 21:45 The Future of Private Wealth Managers in Real Estate 23:31 The Importance of Niche Real Estate Segments 26:06 The Role of REITs in Real Estate Investment 31:47 The Future of the Real Estate Market 33:21 Conclusion

Transitioning from LP to GP, Diana Lin @ Navi Ventures

In this conversation, Josh speaks with Diana Lin from Navi Ventures. We discuss her role in the company and their focus on value-add multifamily properties. She shares the markets they operate in, including Arizona, DFW, and New Mexico. Diana explains how she transitioned from being an architect to launching her own real estate venture. She emphasizes the importance of partnerships and finding mentors in the industry. Diana also highlights the value of hands-on experience in real estate rather than relying solely on formal education.
Diana Lin discusses her transition from being a limited partner (LP) to a general partner (GP) in real estate deals. She highlights the benefits of being an LP, such as gaining perspective on underwriting and vetting sponsors. Diana also shares her surprises and challenges as a GP, emphasizing the importance of time management and active asset management. She expresses her interest in focusing on ground-up development in the future and leveraging her architectural background to design her own projects. Overall, Diana's journey showcases the evolution and growth of a real estate professional.
 
Takeaways
Navi Ventures focuses on value-add multifamily properties in markets such as Arizona, DFW, and New Mexico. 
Diana Lin transitioned from being an architect to launching her own real estate venture. 
Partnerships and finding mentors are crucial in the real estate industry. 
Hands-on experience in real estate is valuable and can be more beneficial than formal education. 
Transitioning from an LP to a GP provides valuable perspective on underwriting and vetting sponsors. 
Active asset management is crucial for success as a GP. 
Being a GP requires time management and the ability to wear multiple hats. 
Ground-up development offers opportunities for creative design and control over the entire project.
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Chapters 00:00 Introduction and Company Overview 01:07 Markets and Location 04:07 Diana's Background in Architecture 06:27 Transitioning from Architecture to Real Estate 08:26 The Decision to Launch Navi Ventures 10:55 Choosing Value-Add Multifamily 12:36 Importance of Partnerships and Trust 14:04 The Value of Experience over Education 15:08 Learning by Doing 16:24 The Role of Architecture in Real Estate 18:43 Benefits of Being an LP 21:09 Surprises of Being a GP 22:34 Balancing Work and Family 25:36 Future Plans: Ground-Up Development 28:38 Architecture Background and Development

Setting Up A First Fund, Diego Hurtado @ Navio Consulting

Diego Hurtado, Principal at Navio Consulting, discusses fund management and raising funds for small to medium-sized developers. Navio Consulting helps these developers build and set up real estate investment funds, and then assists in managing them. The typical fund structure involves adhering to Regulation D, Rule 506(c), which allows for the marketing of the offering to accredited investors. Diego emphasizes the importance of trust and relationships in the fundraising process, and the need for professionalization in the industry. 
 
Takeaways
Navio Consulting helps small to medium-sized developers build and manage real estate investment funds.
The typical fund structure involves adhering to Regulation D, Rule 506(c), which allows for the marketing of the offering to accredited investors.
Trust and relationships are crucial in the fundraising process.
 
Chapters
00:00 Introduction and Overview
00:40 Navio Consulting: Helping Small to Medium-Sized Developers
05:15 Fund Structure and Regulation D
08:49 Fees and Compensation in Fund Management
11:11 Advantages of Building a Fund
15:18 Involvement in the Fund After Launch
18:02 Asset Management and Deal Fees
21:11 Trends in Fundraising and Fund Management
26:48 Long-Term Vision and Interest in Education
31:11 Major Trends in Fundraising and Fund Management
33:31 Importance of Building Relationships
34:01 Conclusion

Staffing a Family Office, Brian Adams, Principal @ Mack International

It's not easy to build a management team for family offices.
In this episode, I speak with Brian Adams, Principal at Mack International. We discuss his transition from the commercial real estate industry to executive search for family offices. He explains the unique challenges of hiring for family office positions, including the need for candidates with both technical skills and emotional intelligence to work within a family construct.
Adams also highlights the stability and control that family offices offer compared to traditional finance roles. He discusses the increasing importance of family offices as their own asset class and the trends of leadership transition and the creation of new family offices. Overall, he provides valuable insights into the world of family offices and executive search within this niche industry.
Takeaways
Hiring for family office positions requires candidates with both technical skills and emotional intelligence to work within a family construct.
Family offices offer stability and control compared to traditional finance roles, which can be attractive to professionals seeking a long-term career.
Family offices have become their own asset class and are increasingly professionalized and institutionalized.
The future of family offices includes a leadership transition from baby boomers to the next generation, as well as the creation of new family offices and the splitting off of branches within larger families.
Chapters
00:00 Introduction and Background
00:40 Transition to Executive Search
03:21 Hiring for Family Office Positions
05:29 Differences in Hiring for Family Offices
08:24 Compensation and Career Path in Family Offices
10:22 Rise of Family Offices
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This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

Data Driven Development in Boston, Eric Doroski @ Zanzibar Capital

Summary
In this conversation, Joshua Kahr speaks with Eric Doroski, Managing Partner at Zanzibar Capital, about their focus on the Boston market and their investment and development pipeline. They discuss the challenges in the current market, including the lack of debt and equity, and the impact of interest rates. Eric shares insights into their current project, a 32-unit condo development, and the importance of understanding the retail condo market. They also discuss their data-driven approach and how they convey this to their investors. Eric highlights the trend of affordable housing projects and their equity sources, including working with family offices.
Takeaways
Zanzibar Capital focuses on the Boston market, particularly in the greater Boston area, with a focus on multifamily and mixed-use properties.
They are currently working on a 32-unit condo development project in South Boston, which includes ground-floor retail and affordable units.
Eric Doroski emphasizes the importance of a data-driven approach and the ability to provide quantitative answers to investors' questions.
They discuss the challenges in the current market, including the disconnect between buyers and sellers, and the impact of interest rates. However, there are still opportunities for investment and development.
Chapters
00:00 Introduction and Background
01:02 Zanzibar Capital and Focus on Boston Market
03:18 Investment vs. Development Pipeline
04:27 Challenges in the Current Market
05:12 Current Project: 32-Unit Condo Development
07:14 Retail Condos and Specialized Investments
08:06 Focus on Core Competencies
09:08 Cashless Society and Amenities
09:54 EV Charging and Future-Proofing
11:56 Interest Rates and Future Opportunities
13:13 Data-Driven Approach and Investor Communication
15:22 Unique Value Proposition and Gut Feelings
19:49 Trends in the Market: Affordable Housing Projects
23:04 Equity Sources and Working with Family Offices
26:41 Interesting Market Trends and Opportunities
 
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This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 
 

Online Fundraising and CrowdStreet, Ian Formigle @ CrowdStreet

In this conversation, Ian Formigle, Chief Investment Officer at CrowdStreet, discusses the role of CrowdStreet as an online platform for individuals to invest in commercial real estate projects. He explains how CrowdStreet acts as a broker-dealer and offers investment opportunities in various asset classes and geographies. Ian also highlights the growth of the investment advisor side of CrowdStreet and the different preferences of investors.
 
He shares the factors that contributed to CrowdStreet's success in the online platform market and the importance of avoiding platform risk. Ian discusses the types of real estate investments that attract investors, such as multifamily properties, and the challenges of investing in niche product types. He also explains the process of finding and vetting sponsors for the platform and the criteria used for screening. Finally, Ian discusses the short-term goals of CrowdStreet, including recovering and growing in 2024.
 
Takeaways
CrowdStreet is an online platform for individuals to invest in commercial real estate projects across the country.
CrowdStreet acts as a broker-dealer and offers investment opportunities in various asset classes and geographies.
Investors on CrowdStreet can choose between investing individually or through funds managed by CrowdStreet Advisors.
Multifamily properties are a popular investment choice on the platform due to their approachability and potential for cash flow.
CrowdStreet screens and vets sponsors to ensure they meet the platform's criteria and maintain a long-term relationship based on trust.
Chapters
00:00 Introduction and Overview
00:43 What does CrowdStreet do?
01:38 CrowdStreet's Role as a Broker-Dealer
03:00 Growth in Investment Advisor Side
04:07 Surviving and Thriving in the Online Platform Market
05:23 Factors Contributing to CrowdStreet's Success
06:11 Differentiating CrowdStreet's Marketplace
07:02 Avoiding Platform Risk
08:27 Creating a Scalable Investor Experience
09:46 Transitioning from Active to Passive Real Estate Investing
11:58 Understanding Crowdfunding and Regulation 506
14:13 Differentiating CrowdStreet from True Crowdfunding
15:38 Investor Interest in Multifamily Real Estate
17:15 Product Types that Attract Investors
19:22 Product Types that Lack Investor Interest
21:19 Avoiding Niche and Risky Product Types
23:21 Finding and Vetting Sponsors
26:23 Recovering and Growing in 2024
31:10 Short-Term Goals for CrowdStreet
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This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

Energy Rights and Power Production, Chris Pawlik @ EPR Squared

Chris Pawlik, co-founder of EPR Squared, explains the concept of energy producing retail realty and how the company offers a sale leaseback of energy rights to property owners. By developing energy rights behind the meter, property owners can decrease operating expenses and increase net operating income. The agreements typically last around seven years, and EPR Squared provides a percentage rent to the property owner based on the revenue generated from the power. The company targets projects with a minimum size of 30,000 to 50,000 square feet, but is also developing an energy rights portal to accommodate smaller projects.
 
Takeaways
EPR Squared offers a sale leaseback of energy rights to property owners, allowing them to decrease operating expenses and increase net operating income.
The agreements typically last around seven years, and property owners receive a percentage rent based on the revenue generated from the power.
EPR Squared targets projects with a minimum size of 30,000 to 50,000 square feet, but is developing an energy rights portal to accommodate smaller projects.
The real estate market conditions, such as interest rates and leasing activity, can impact the adoption of EPR Squared's services.
Chapters
 
00:00 Introduction and Company Overview
00:49 Explanation of EPR Squared
04:02 Sale Leaseback of Energy Rights
05:54 Revenue Sharing Agreement
08:25 Duration of Agreements
09:57 Impact of Real Estate Market on EPR Squared
14:54 Market Potential and Location
17:03 Comparison to Other Financing Options
20:56 Longevity of Solar Equipment
21:08 Customer Acquisition
23:29 Surprises in the Business
28:52 Impact of Real Estate Market on EPR Squared
32:48 Minimum Size for EPR Squared Projects
34:42 Energy Rights Portal
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This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

The Efficiency of Multi-Family Offices, Jason Mandel @ Mandel Family Office

SummaryIn this conversation, Jason Mandel, CEO of the Mandel Family Office, discusses the basics of family offices and the services they provide. He explains the difference between single family offices and multi-family offices, highlighting the benefits of the latter. Mandel emphasizes the importance of holistic financial advice and the role of a family office in helping families avoid controversy and disintegration. He also discusses philanthropic ambitions, legacy planning, and tax minimization strategies. Additionally, Mandel shares insights on utilizing insurance solutions for wealth management, investment funds and strategies, and concerns and challenges faced by clients. He concludes by discussing client acquisition and referrals.
Takeaways
Family offices provide holistic financial advice and services to wealthy individuals and families.
Multi-family offices offer a range of services and allow clients to share expenses, reducing costs.
Family offices can help families avoid controversy and disintegration by providing unbiased advice and structuring solutions.
Insurance solutions can be utilized for wealth management, tax minimization, and legacy planning.
Investment funds and strategies can be tailored to meet the unique needs and goals of clients.
Client acquisition for family offices often comes through referrals from lawyers and accountants.
Chapters
00:00 Introduction and Background
01:01 Starting a Family Office
02:39 Single Family Office vs. Multi-Family Office
03:35 Benefits of a Multi-Family Office
06:06 The Importance of Holistic Financial Advice
08:36 Avoiding Controversy and Family Disintegration
09:35 Philanthropic Ambitions and Legacy Planning
11:00 Utilizing Insurance Solutions for Wealth Management
13:05 Tax Minimization Strategies
14:45 Utilizing Life Insurance for Tax-Free Growth
19:36 Investment Funds and Strategies
21:33 Asset-Backed Lending and Tax-Free Retirement Plans
29:46 Concerns and Challenges for Clients
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This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

Financing Energy Projects for CRE, Chad Blevins @ Repower Holdings

Chad Blevens from Repower Holdings discusses their unique approach to financing energy improvement projects in commercial real estate. Repower Holdings aims to provide capital for energy improvement projects that are part of larger real estate deals, offering an equity position in the overall asset. This approach aligns the interests of the energy improvement provider and the real estate investor, driving trust and collaboration. The strategy is applicable to various asset classes and regions, with a focus on high energy use intensity and regions with higher energy costs. Repower Holdings plans to start deploying capital in Q1 and expects to have a balanced portfolio across asset classes and regions.
Takeaways
Repower Holdings provides capital for energy improvement projects in commercial real estate, offering an equity position in the overall asset.
Their unique approach aligns the interests of the energy improvement provider and the real estate investor, driving trust and collaboration.
The strategy is applicable to various asset classes and regions, with a focus on high energy use intensity and regions with higher energy costs.
Repower Holdings plans to start deploying capital in Q1 and expects to have a balanced portfolio across asset classes and regions.
Chapters
00:00 Introduction and Overview
00:57 Repower Holdings' Concept and Objectives
03:23 Equity Position in Real Estate Deals
07:10 Repower Holdings' Differentiation
09:32 Partnership with Correlate Energy
10:29 Expanding Financing Options 11:57 Equity Financing vs. PPA Financing
13:23 Focus on Ground-Up Development and Value-Add Projects
16:00 Case Study: Energy Retrofit of a 1970s Vintage Apartment Complex
20:51 Importance of Energy Efficiency in Real Estate
22:16 Energy Efficiency Challenges and Low-Hanging Fruit
24:35 Alignment of Interests and Trust
26:32 Fundraising and Deployment Timeline
28:20 Target Market and Product Types
30:11 Balanced Portfolio Approach
34:04 Long-Term Viability of the Strategy 
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This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases