What are the most boring assets to work with?
To those who have been in the game a decent time, what properties are boring to work with? I never dealt with them, but suburban office or a firm that deals with corporate complexes seems like it would be the most vanilla.
What do you mean a firm that deals with corporate complexes? Office buildings?
Suburban office can be pretty interesting. If you have a large campus, you can do different things with it. For example, get a single (high credit) tenant to take a whole building, maybe you want to condo it off. Maybe it's a large campus and because you own so much you control the ownership association. It gives you the ability to choose what happens on the grounds of the campus.
In the end, office is office is office. Doesn't matter where it is. Some people will like apartments more, some industrial, and some office or retail. It just depends on your interests.
Even though it makes us a ton of money, single tenant industrial is boring as sin.
Also just as a follow up, I would say that in today's environment suburban office is actually the most challenging/interesting to work on outside of Class B/C malls of course......
100% this^
If you can call them assets... interns.
Single tenant NNN leased stuff; e.g. industrial or datacenter
e: sorry responded to to the wrong chain and this dumb site doesn't let you delete comments
Yeah especially NNN credit tenant lease deals - I can underwrite one of those in about 5 minutes I can only imagine how boring it is working on actually putting the deal together. I imagine the whole process just involves negotiating the lease which probably takes a frustratingly long time because of who bureaucratic your tenants would be (CVS, Home Depot etc).
That said, good NNN guys make a killing especially because you can lever the shit out of those deals. The only 100% LTC financing that remains in today's world.
The answer to this question is 100% STNL.
That being said, I work in shopping center acquisitions and at some point if I can raise some capital and snap up NNN assets with good credit that's one of the easiest paths to putting together a fund easily.
Hardly any leasing/management involved in that stuff. Lots of competition in that space, but tons of assets, and a lot of bigger guys who maybe started out that way, or changed their strategy to buying grocery-anchored stuff who are now getting rid of the STNL stuff to craft a more "quality" grocery-anchored portfolio.
Boring to buy, fun to develop. Since the competition is so fierce on the development side you feel like you are big game hunting. There is also a huge payoff in building and flipping these assets.
I agree that it is the easiest way to pool some friends and family money together and start a fund.
Single tenant industrial. Not a fan of office in general.
I always thought healthcare real estate was boring. You underwrite health systems and look at things like medicaid reimbursements and such. Everything is so political in the space.
There is a direct correlation between lease duration and lack of excitement - i.e. hotels most exciting net lease least exciting
Disagree. I'd rather be buying upscale retail than suburban garden apartment complexes... And I feel like most others would too.
I am in this business for quite some time now , and find suburban office ,corporate complexes are interesting to work with . Corporate complexes comes under commercial property and, I deal in commercial property for sale .
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