Acquisitions - How active is your pipeline?

REJB123's picture
Rank: Baboon | 147

Saw this topic posted back in 2016, thought it would be interesting to hear where everyone is at now that we're even deeper into this cycle. Are you active at all? When was the last time you closed on a deal, what was it? Just waiting to see how the next year or two play out (2020 election)? If you aren't active, what have you been doing in the meantime?

The list below was included on the 2016 post, I thought it helped with formatting responses.

  1. Are your deals debt or equity?
  2. Main market(s) your team is currently investing in?
  3. Product type(s) your team tends to focus on?
  4. Where on the risk spectrum you are currently seeing deals (opportunistic - core? Would also be helpful to list your target return metrics (IRR, multiple, etc.).

If there's anything else you might think is relevant feel free to throw it in

topic credit to @Gentleman and Scholar

Comments (9)

Nov 26, 2019

Just thought I'd mention that I built a dead-simple app for expressing points 1-4 in your list and allowing people to find you based on them. Here's an example based on my experience: https://targets.towerhunt.com/contacts/NfxwbSKdNwL....
I realize that doesn't answer your question, but the tool might help you stay connected with the right folks in your markets.

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Nov 27, 2019

I would also be interested in the job pipeline on the acquisitions side around the junior level. Seems like more firms were cautious on their hiring this fall compared to last year but I would love to be proven otherwise.

Nov 27, 2019

Debt side here. The way I see it the market is super tight. Good deals are competitive and spreads/returns are tight. We are being pushed to secondary assets at secondary cities to try to keep our returns - analyzing the credit/sponsor and the business plan is the big challenge now.

But deal flow is intense!

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Nov 27, 2019

Surprisingly, pretty active for this time of year. A lot of deals went for crazy pricing in the fall rush; a handful of which have fellout of contract. We have been the first or second call to take another look, and are currently chasing a few.

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Most Helpful
Nov 27, 2019
REJB123:

1. Are your deals debt or equity?

Equity (we're an LP). We do debt as well but that's a more niche group within the company.

REJB123:

2. Main market(s) your team is currently investing in?

My company is national, I work on the Southwest/Texas.

REJB123:

3. Product type(s) your team tends to focus on?

Everything.

REJB123:

4. Where on the risk spectrum you are currently seeing deals (opportunistic - core? Would also be helpful to list your target return metrics (IRR, multiple, etc.).

  • MF Development - Dallas, Texas
  • MF Development - Austin, Texas
  • MF Development - Nashville, Tennessee
  • Industrial Development - Dallas, Texas
  • Industrial Development - Inland Empire, CA
  • Covered Land Play / Industrial Development - Bay Area, CA
  • Office Redevelopment - Bay Area, CA

The MF and Industrial developments are split between a merchant build strategy (3-5 year exit) and a build-to-core strategy (10-year exit). All of these are fairly far along in the acquisition process without having closed. I'm working on two of the TX deals.

Anyone else working on any Texas or SoCal deals right now?

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Nov 27, 2019

Curious since you cover Texas...what are your thoughts on the Austin MF market right now?

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Dec 2, 2019
larrison34:

Curious since you cover Texas...what are your thoughts on the Austin MF market right now?

We're very bullish on Austin. We think Austin and particularly Austin multifamily will outperform most other MSAs over the next 5-10 years.

  • Associate 2 in CorpDev
Nov 28, 2019
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