As a GP, you could either raise money on a deal-by-deal basis via a syndication (multiple smaller LPs) or via a larger single LP (institutional LP etc). The latter is a real estate private equity (REPE) partner.

Thread continues🧵

1/

https://twitter.com/pere_md/status/1716848720027775219

At a prior GP firm I worked at, we had several deals w/ institutional LPs, although the set-up wasn’t programmatic; done here & there.

When getting “awarded a deal”, we “shopped it around” to existing institutional LP as well as to potentially new single LP partners.

2/

Not common for landlords to do ground leases on outparcel pad sites to national credit quick-service retail (QSR) tenants vs doing a build-to-suit & leasing it to them.

Let’s do a deep drive on ground leases.

Thread continues 🧵

1/ These national QSRs have their own architects, developmemt / construction teams etc. They know best how to construct the standard prototype / configuration they’re looking for.

2/

Tenant improvement allowance (TIA) amt could vary depending on if a space is a turnkey/move-in ready speculative (spec), landlord build, tenant build, etc.

See thread 🧵 for more

1/ For a turnkey “spec suite”, it’s already been built out w/offices, etc, so tenant typically might just ask for small TIA for minor modifications/additions.

2/

One thing about light industrial acquisitions is that CAM pools can be simple like NNN (all expenses) pass-thrus or fixed CAM.

Cranked out ARGUS run from scratch quickly via rent roll & op statement for “off market deal”; no ARGUS run was provided.

Didn’t pencil, but tried. Besides adjusting seller’s assumptions to our standard operating procedures, also needed to underwrite capital for our typical scope of work in our model.

“Hold-sell” analyses can be helpful for CRE investments, but they’re predicated on spaces rolling or expiring by a certain year.

(see thread 🧵 for more)

(1/ ) So just keep this in mind for initial underwriting & acquisitions. Asset managers definitely need run hold-sell analyses as they get closer to selling.

(2/ )

Tenants gravitate towards amenity-rich & productive/functional business environments; adapt & push forward or risk obsolescence.

(see thread below for more 🧵)

(1/ ) In order keep up w/ your competitive set, consider adding amenities offered at competing props or even add unique amenities to your subject property.

(2/ )

So cool when someone on #retwit teaches you a concept & you run across it.

@MattLasky asked me about credit on interest rate cap counterparties for diff quotes we got.

Buy downgraded interest rate cap if accepted by lender. A- on S&P & A3 Moody’s vs A+ & A1 respectively. $47k savings using downgraded credit; actually sub A- S&P & A3 Moody’s.

If the lender is fine with the “lower trigger downgrade requirement”, will run with it.

@CREGraveDancer @DallasAptGP