Comments (34)

Jul 13, 2018

Development or Investment? Do you have experience in this sector?

Jul 13, 2018

Leaving a Real Estate Private Equity / Hedge Fund.

Would be primarily investment but some development.

Jul 13, 2018

.

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Jul 13, 2018

There's more to this than fundraising. Just bc the LP part of the equation is handled doesn't mean anything else is a gimme

Jul 13, 2018

Fair enough, but fundraising is by far the most difficult part (from what I hear).

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Jul 13, 2018

How moronic are you? What do you mean you couldn't learn from someone with family money? If he works in REPE, he's clearly not a dumbass

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Jul 13, 2018

.

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Jul 13, 2018

Can you elaborate on your prior experience at the REPE/HF shop? What made you feel like it was time to leave and start your own gig? What specifically do you plan on investing in on behalf of the FO?

Jul 13, 2018

We own a good amount of industrial properties with no debt. Our family business occupies a good amount of the space but recent increases in the rental market are making it more attractive for us to lease our owned Class A space and lease Class B/C for our own use. Additionally, we're under construction on 2 more mixed use properties. We'd like to start investing in more multifamily value add deals... that's where I come in!

My experience -- I started out working on traditional value add deals like you'd see from any large LP. However, over the last 2 years I've moved to working on securities... making it less interesting and beneficial for me. As a result, I'm headed out.

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Jul 13, 2018

What is your age and experience level?

Jul 13, 2018

Age: Probably too young to be trusted
Experience: ~5 years in the industry; a few more years in other front office roles.

Jul 13, 2018

Questions
1. Do you have a strategy or IPS laid out yet? Why multi-family as a focus?

  1. Are you comfortable sharing what part of the country you're in currently? Looking to stay focused in this area or are you agnostic on location?
  2. Was this something the family thought of or was it your pitch?
Jul 16, 2018

what's IPS stand for?

Jul 13, 2018

Investment policy statement

Jul 13, 2018

What markets will you be focusing on?

What type of financing are you targeting?

Since your properties are debt free do you plan on owning them for life?

This would get a ton of love in the real estate forum.

Jul 13, 2018
press107:

What markets will you be focusing on? It's a small Midwestern submarket that's rather diverse and very, very low cap rates.

What type of financing are you targeting? We have a strong relationship with a local bank that's let's us use our existing business cash flow as leverage... dropping our rates to below market.

Since your properties are debt free do you plan on owning them for life? That's been their plan up until now. We're revisiting putting leverage on them and running them like a traditional PE.

This would get a ton of love in the real estate forum.

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Jul 16, 2018

What type of returns are you targeting?

Jul 13, 2018

We've historically gotten 9-10% unlevered. Looking to continue the trend. Would even be happy with 7-8%.

Additionally, looking into possibility of opening a REIT.

Jul 16, 2018

Can you discuss your comp structure? If you employ other investment professionals what does their structure look like?

Jul 13, 2018

There's my father, uncle (my dad's brother in law), and brother. We're all equity holders.

There's also some analysts who are salaried.

Jul 13, 2018

Some follow up questions for you...

Favorite asset class?

Would you prefer to do pure ground up development, acquisition, rehabs, or redevelopments?

When are you going to be hiring another analyst?

Jul 13, 2018
press107:

Some follow up questions for you...

Favorite asset class? --> Mixed Use (industrial/office)

Would you prefer to do pure ground up development, acquisition, rehabs, or redevelopments? --> Acquisition/Rehab

When are you going to be hiring another analyst? --> probably one or two... definitely when we open the REIT

Jul 13, 2018

Thanks for the answers. PM me if you ever need an analyst.

Jul 17, 2018

Depends on location of the market. Would love to be sitting on something like that with no debt though.

Jul 17, 2018

Who will be making the investment decisions? Are you hiring analysts? How do you analyze properties and know that they are the right fit?

What would be everyone's role at the firm (I.e who does what on a daily basis between your dad, uncle and brother)

How much development experience do you have? Do developers have prior construction experience or will you be relying on GCs to guide you?

How much money are you raising? I thought family offices don't take outside money?

Thanks.

Jul 13, 2018
yayaa:

Who will be making the investment decisions? Are you hiring analysts? How do you analyze properties and know that they are the right fit? --> We have a good broker who always brings us deals first... usually with a new tenant as well. He matches them up and we cut the check. Fairly simple system.

What would be everyone's role at the firm (I.e who does what on a daily basis between your dad, uncle and brother) --> Dad and Uncle will be relatively hands off... we have a few family businesses that kick off the cash for the real estate that need to be managed. Brother works for a BB at the moment... will be coming home in next 2-3 years.

How much development experience do you have? Do developers have prior construction experience or will you be relying on GCs to guide you? --> Very little.

How much money are you raising? I thought family offices don't take outside money? --> not raising any.

Thanks.

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Jul 17, 2018

Who will be making the investment decisions? Are you hiring analysts? How do you analyze properties and know that they are the right fit?

What would be everyone's role at the firm (I.e who does what on a daily basis between your dad, uncle and brother)

How much development experience do you have? Do developers have prior construction experience or will you be relying on GCs to guide you?

How much money are you raising? I thought family offices don't take outside money?

Thanks.

Jul 17, 2018

general location?

Jul 13, 2018

Midwest... think Chicago suburbs.

Jul 17, 2018

Lol at repe/hedge fund.

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Jul 18, 2018
Comment
Jul 13, 2018