#  @ClarenceWongCRE Clarence Wong, CCIM Clarence Wong, CCIM posts on X about debt, investment, money, cash flow the most. They currently have [-----] followers and [----] posts still getting attention that total [------] engagements in the last [--] hours. ### Engagements: [------] [#](/creator/twitter::2882321918/interactions)  ### Mentions: [--] [#](/creator/twitter::2882321918/posts_active)  ### Followers: [-----] [#](/creator/twitter::2882321918/followers)  ### CreatorRank: [-------] [#](/creator/twitter::2882321918/influencer_rank)  ### Social Influence **Social category influence** [finance](/list/finance) [currencies](/list/currencies) [technology brands](/list/technology-brands) [stocks](/list/stocks) [social networks](/list/social-networks) [countries](/list/countries) [celebrities](/list/celebrities) [travel destinations](/list/travel-destinations) [cryptocurrencies](/list/cryptocurrencies) [automotive brands](/list/automotive-brands) **Social topic influence** [debt](/topic/debt), [investment](/topic/investment), [money](/topic/money), [cash flow](/topic/cash-flow) #886, [commercial real estate](/topic/commercial-real-estate), [cre](/topic/cre), [insurance](/topic/insurance), [acquisition](/topic/acquisition), [if you](/topic/if-you), [asset management](/topic/asset-management) **Top assets mentioned** [GrokCoin (GROKCOIN)](/topic/grok) [Dogecoin (DOGE)](/topic/doge) [Costco Wholesale Corporation (COST)](/topic/costco) [Alphabet Inc Class A (GOOGL)](/topic/$googl) [RAMP (RAMP)](/topic/ramp) [Stifel Financial Corp. (SF)](/topic/$sf) [Reserve (RSV)](/topic/reserve) [Uber Technologies, Inc. (UBER)](/topic/$uber) [pizzacoin (PIZZACOIN)](/topic/pizza) ### Top Social Posts Top posts by engagements in the last [--] hours "Check out graph below from Moody's Analytics illustrating this example. This gives you an idea of how much ann. rent growth buyer would need to hold prop value given cap rate expansion sensitivity. (2/2) #CREValueAdd #CRE #commercialrealestate #retwit" [X Link](https://x.com/ClarenceWongCRE/status/1604008661822492674) 2022-12-17T07:00Z [----] followers, [---] engagements "Also keep in mind time value of money (TVM)money sooner is worth more (& discounted less) vs money later (discounted more). #CREValueAdd #CRE #commercialrealestate #retwit" [X Link](https://x.com/ClarenceWongCRE/status/1604262876625383424) 2022-12-17T23:50Z [----] followers, [--] engagements "@bobbyfijan Theres a good chance that this ground-up development is a prelease or tenant-in-tow. Time value of money (TVM) with a compressed 18-month hold timeframe juices IRR" [X Link](https://x.com/ClarenceWongCRE/status/1605812971736702976) 2022-12-22T06:30Z [----] followers, [---] engagements "@SimpleCRE @TeamHerrold Interest case study above. Developer is offering rent bump guarantee for the 15-year termbumps every five years as part of the sale. Youll sometimes see 10% every [--] years which averages to 2% / year but less w/ time value of money (TVM). Give me 20% / [--] yrs maybe" [X Link](https://x.com/ClarenceWongCRE/status/1626106734833184768) 2023-02-16T06:30Z [----] followers, [---] engagements "Considering the three (3) scenarios above keep in mind also that IRR is typically comprised of operating cash flows throughout the hold & reversion cash flow from net sale proceeds at exit. 5/" [X Link](https://x.com/ClarenceWongCRE/status/1627688971693338624) 2023-02-20T15:17Z [----] followers, [----] engagements "Factoring in time value of money (TVM) in the three (3) scenarios above the further out the cash flow (CF) in the hold period the heavier its discounted i.e. CF / (1+discount rate)(given period). 6/" [X Link](https://x.com/ClarenceWongCRE/status/1627689224542756865) 2023-02-20T15:18Z [----] followers, [---] engagements "Have you ran across below-market rents in CRE or loss (or gain) to lease in multifamily How does it work Lets break this down Thread 🧵 continues 1/" [X Link](https://x.com/ClarenceWongCRE/status/1633133405583077376) 2023-03-07T15:52Z [----] followers, [----] engagements "Interesting vernacular below. I got my pandemic mortgage or refi back in" [X Link](https://x.com/ClarenceWongCRE/status/1633834790477787146) 2023-03-09T14:19Z [----] followers, [----] engagements "10 years of experience is a bit of an exaggeration but be sure to get that internship experience during undergrad &/or graduate school. This is so important especially in commercial real estate (CRE) to help land that job post-graduation. Competition is fierce nowadays" [X Link](https://x.com/ClarenceWongCRE/status/1634199933153603586) 2023-03-10T14:30Z [----] followers, [----] engagements "Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC. 7/" [X Link](https://x.com/ClarenceWongCRE/status/1640350515979784197) 2023-03-27T13:50Z [----] followers, [---] engagements "In addition the FDIC received equity appreciation rights in First Citizens BancShares Inc. Raleigh North Carolina common stock with a potential value of up to $500 million. 8/" [X Link](https://x.com/ClarenceWongCRE/status/1640350610305478657) 2023-03-27T13:50Z [----] followers, [---] engagements "@scottdavisCRE @bethanyjbabcock Sounds like brokers go-to-market price was too aggressive (couldnt hit it) & ending up hitting strike price that you originally recommended (value priced to sell). Owner may consider doing a tiered commission structure w/ brokerpay more if broker can knock it out of the park" [X Link](https://x.com/ClarenceWongCRE/status/1652823800738885633) 2023-04-30T23:54Z [----] followers, [--] engagements "@tommyizim0 @realEstateTrent Even if you used much higher discount rate than below youre still better off paying the $50 upfront. Plugged in a 20% discount rate & the XNPV (net present value) came out to $81. As @RyanGTuttle explained in his comment need to factor in time value of money (TVM) here. @realEstateTrent If you run an XNPV calc using a 6% 7% or 8% discount rate on $4 a month paid over the next [--] months it comes out to around $90 in todays dollars. So paying $50 upfront is the lower-cost option. @realEstateTrent If you run an XNPV calc using a 6% 7% or 8% discount rate on $4 a" [X Link](https://x.com/ClarenceWongCRE/status/1665429621914103808) 2023-06-04T18:45Z [----] followers, [---] engagements "If you run an XNPV calc using a 6% 7% or 8% discount rate on $4 a month paid over next [--] mos it comes out $90 in todays dollars. So paying $50 upfront is the lower-cost option. Need to factor in the time value of money (TVM). Thanks @realEstateTrent. Amazing how many people think it's a better deal to pay $4 a month over the next [--] years than $50 today Amazing how many people think it's a better deal to pay $4 a month over the next [--] years than $50 today" [X Link](https://x.com/ClarenceWongCRE/status/1665431489981607937) 2023-06-04T18:53Z [----] followers, [----] engagements "If you lever & have a debt payment after factoring that in along w/ leasing & capex costs you get levered net cash flow. Levered net CF / equity invested = cash-on-cash. Similar to in-place cap rate but factors in debt & leasing/capex costs. 7/" [X Link](https://x.com/ClarenceWongCRE/status/1669949201885847552) 2023-06-17T06:04Z [----] followers, [---] engagements "That said you could think of year [--] cash-on-cash as a year [--] discount rate since discount rate is typically applied to net cash flow. Also discount rate is a time value of money (TVM) calc so effective discount rate is higher later during the hold period. 8/" [X Link](https://x.com/ClarenceWongCRE/status/1669949434472591360) 2023-06-17T06:05Z [----] followers, [---] engagements "So on an absolute dollar amount institutional LPs still invest & deploy large amts of equity & make large amts of money on their investments. They dont need to acquire deals unlevered; sometimes end up doing (all) cash to close & then add on debt post closing. 5/" [X Link](https://x.com/ClarenceWongCRE/status/1673181681996664833) 2023-06-28T04:47Z [----] followers, [---] engagements "Assuming 4.8% is a stabilized market cap yield on cost (YOC) of 4.5% is [---] bps under in example below. Ideally YOC is [---] to 200+ bps over mkt exit cap for juice to be worth the squeeze. Dont want to be losing return on the exit. Need spread to generate enough profit" [X Link](https://x.com/ClarenceWongCRE/status/1673703555369439233) 2023-06-27T14:43Z [----] followers, [--] engagements "@jandreini1 5% increase every [--] years is even worse than 1% per year. With the latter at least you get 1% each year & it compounds. Example above is an anti-hedge against inflation" [X Link](https://x.com/ClarenceWongCRE/status/1674063969797931008) 2023-06-28T14:36Z [----] followers, [---] engagements "Each buyers proforma cap or return on cost could be different based on assumed market rents capex scope lease-up schedule business plan etc" [X Link](https://x.com/ClarenceWongCRE/status/1674614505576488960) 2023-06-30T03:10Z [----] followers, [---] engagements "@TheWolfofREI How about demising the big units into smaller spec / turnkey / move-in suites Could this make sense from a return on cost perspective if you factor in demising costs Is demand there for these smaller spaces & is juice worth the squeeze here @kenashley @creromans" [X Link](https://x.com/ClarenceWongCRE/status/1674615643969294337) 2023-06-30T03:22Z [----] followers, [---] engagements "Proud of our BKM Capital Partners team on acquiring Commerce Carlsbad an eight-building multi-tenant industrial park in Carlsbad CA. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1678761496137064453) 2023-07-11T14:27Z [----] followers, [----] engagements "Available industrial spaces 50K SF in San Diego are currently leasing at a record average pace of [---] months per Brett Turner head of acquisitions. 12/" [X Link](https://x.com/ClarenceWongCRE/status/1678762527201824774) 2023-07-11T13:56Z [----] followers, [---] engagements "Were confident that w/ our planned improvements we will bring the rebranded Pacific Coast Industrial Center to full occ. & mkt rates well w/in our anticipated hold period. 13/" [X Link](https://x.com/ClarenceWongCRE/status/1678764203526733825) 2023-07-11T13:56Z [----] followers, [---] engagements "@Snowball_Dev This is our first true coastal light industrial deal just a quarter mile from the ocean (unique) so were especially excited about this one. Thanks @Snowball_Dev" [X Link](https://x.com/ClarenceWongCRE/status/1678770542361595917) 2023-07-11T14:27Z [----] followers, [--] engagements "@Snowball_Dev Notice how close we are to the Pacific Ocean" [X Link](https://x.com/anyuser/status/1678771556472983552) 2023-07-11T14:27Z [--] followers, [--] engagements "@ADeermount @RussellLowery10 That said when a tenant leaves you may need to demo (demolish) some part of the suite to configure for another tenant. Ideally you can save some of the space & retain some residual value. For older more inefficient spaces you may need to demo & white box" [X Link](https://x.com/ClarenceWongCRE/status/1680593809871355904) 2023-07-16T15:02Z [----] followers, [---] engagements "@ADeermount @RussellLowery10 This is unlike multifamily lets say where spaces are more homogeneous & cookie cutter. There are preset configurations. Different unit mixes for bedrooms & bathrooms but thats it. Pretty much plug & play for new tenants. Just come in & rent units as-is. No customization" [X Link](https://x.com/ClarenceWongCRE/status/1680594682508877825) 2023-07-16T15:06Z [----] followers, [--] engagements "@TheWolfofREI Great example of time value of money (TVM) as it relates to rent bumps. Rather than 2% every year for [--] years (compounds) get bumps sooner etc. Versus one 10% rent bump in [--] years. Use a discount rate to NPV the value. Thanks @TheWolfofREI" [X Link](https://x.com/ClarenceWongCRE/status/1681411934934155264) 2023-07-18T21:13Z [----] followers, [---] engagements "Cap rate is static & doesnt factor in NOI growth which leads to a higher terminal value. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1682938033686061057) 2023-07-23T02:17Z [----] followers, 23.8K engagements "IRR considers both operating & reversion cash flows; discounts CFs via time value of money (TVM); $ now $ later. 2/" [X Link](https://x.com/ClarenceWongCRE/status/1682938130360565760) 2023-07-23T02:18Z [----] followers, [----] engagements "@3NDeveloper @RetaiLord @CaseyMericle Ultimately we want to sell as close to gross asset value (GAV) or higher. Otherwise were not sellers. Weve ended up recapping instead etc. Or you can do some more lease-up or improvements & then sell later" [X Link](https://x.com/ClarenceWongCRE/status/1682954705180426241) 2023-07-23T03:24Z [----] followers, [--] engagements "@3NDeveloper @RetaiLord @CaseyMericle You do need to do hold-sell analysis though. Put in x $s in additional capex (to lease up / improve prop) & hold off Or is the juice not worth the squeeze & should we sell now In the meantime IRR is deteriorating via time value of money (TVM)" [X Link](https://x.com/ClarenceWongCRE/status/1682955427003379712) 2023-07-23T03:26Z [----] followers, [--] engagements "@ShlomoChopp @moseskagan For value-add deals we use variable-rate debt & interest only (IO) at least for initial term. Might consider fixed-rate debt for core-plus deals if it makes sense though. Debt isnt a one-size fits all kind of thing; depends on deal. Use leverage & use it wisely" [X Link](https://x.com/ClarenceWongCRE/status/1682965007884242944) 2023-07-23T04:16Z [----] followers, [---] engagements "@ShlomoChopp @moseskagan Also buying interest rate caps can act as a hedge so your variable interest rate doesnt go out of control" [X Link](https://x.com/ClarenceWongCRE/status/1682965651596644352) 2023-07-23T04:16Z [----] followers, [---] engagements "@financeguy725 Not factoring in time value of money (TVM) as well as opportunity cost to invest money elsewhere etc. Also for CRE unless its an infinite hold ♾ hold periods are less. 3-5 years for value add etc. @aaronk7" [X Link](https://x.com/ClarenceWongCRE/status/1685685037327683584) 2023-07-30T16:13Z [----] followers, [----] engagements "@rohde88 Wonder if building a trash enclosure would help on above Maybe maybe not" [X Link](https://x.com/ClarenceWongCRE/status/1685902101170507777) 2023-07-31T06:36Z [----] followers, [---] engagements "@NersesAposhian Picerne. Newport Beach" [X Link](https://x.com/ClarenceWongCRE/status/1686604882416148480) 2023-08-02T05:09Z [----] followers, [--] engagements "@jchal @Bethazor1 Need to bifurcate the data. Dying class-C malls is old news. Not all retail centers are in a death spiral" [X Link](https://x.com/ClarenceWongCRE/status/1687843818882965504) 2023-08-06T00:23Z [----] followers, [---] engagements "@Snowball_Dev @Rev_Cap Great pt about time value of money (TVM) reducing Yr [--] residual value on a PV basis which impacts UIRR" [X Link](https://x.com/ClarenceWongCRE/status/1688219540365467648) 2023-08-06T16:04Z [----] followers, [--] engagements "We're targeting most "hot spot" markets (TX west) below for value-add multi-tenant light industrial. Insightful graphic. Follow the migrationneed logistics to support migration" [X Link](https://x.com/ClarenceWongCRE/status/1688554833677348864) 2023-08-07T14:16Z [----] followers, 20.3K engagements "@3NDeveloper Wonder if lenders appraisers etc discount cash flow from WeWork locations. Cash flow may not be as durable as other tenants. WeWork could blow out anytime. When I worked in asset mgmt a WeWork closed but we had a letter of credit. Used payout to improve prop" [X Link](https://x.com/ClarenceWongCRE/status/1689640637338177536) 2023-08-10T14:11Z [----] followers, [----] engagements "@realEstateTrent IRR clock is ticking tootime value of money (TVM). Add the value & exit to maximize return" [X Link](https://x.com/ClarenceWongCRE/status/1689664883636482049) 2023-08-10T15:47Z [----] followers, [---] engagements "For certain analyses my boss sometimes says I dont need you to be gnats ass (tick-in-tie to the smallest detail) for accuracy. Just need the drivers that move the needle along w/ explanations. For the rest they could be categorized as an other line item" [X Link](https://x.com/ClarenceWongCRE/status/1690089996827656193) 2023-08-11T19:57Z [----] followers, [----] engagements "Interesting that private debt lenders underwrite 15-20% IRR downside if they have to foreclose. Pick up asset at low basis but like w/ any value-add deal it would take work to reposition & release. Base case is 9-12% for lender w/ return based on interest rate on loan amount" [X Link](https://x.com/ClarenceWongCRE/status/1690412485197860864) 2023-08-12T17:18Z [----] followers, [--] engagements "Yikes. The Department of Justice is investigating Nightingale Properties after the New York-based real estate investor allegedly diverted nearly $40M of equity raised on real estate crowdfunding platform CrowdStreet into accounts controlled by its CEO" [X Link](https://x.com/ClarenceWongCRE/status/1690423979360882688) 2023-08-12T18:04Z [----] followers, [----] engagements "Question to askis the highest priced buyer real Have real equity behind them Or just fishing for deals That said highest priced buyer isnt always most qualified. Deal may blow out later if seller takes this buyers offer. Then seller comes back to backup buyers" [X Link](https://x.com/ClarenceWongCRE/status/1690724478618320896) 2023-08-13T13:58Z [----] followers, [----] engagements "@CRE_Investing Unforeseen capex / DD issues is one thing but other than that sellers dont like unreasonable retrades. Thats happening now for a deal & we have another bite at the apple as a backup buyer" [X Link](https://x.com/ClarenceWongCRE/status/1690764403401211904) 2023-08-13T16:37Z [----] followers, [---] engagements "@CRE_Investing Go pt. above regarding interest rates rising as reason for potential retrade. We had a deal tied up for a while. Interest rates went up. Seller was willing to do carry back which helped offset loses via higher int. rates" [X Link](https://x.com/ClarenceWongCRE/status/1690846739690131456) 2023-08-13T22:04Z [----] followers, [--] engagements "Thanks all for helping me get to 6k followers. Hopefully adding some value to your feed. 4k more to get to 10k. Not sure I can get there by year-end (goal) but Ill do my best & see what happens" [X Link](https://x.com/ClarenceWongCRE/status/1691621485654507953) 2023-08-16T01:22Z [----] followers, [----] engagements "For value-add deals w/ 3-5 yr holds you'll likely be using a spread over SOFR for debt. US Treasuries is a proxy for this. A metric to evaluate is market exit cap over SOFR when selling. Rates now projected to end up higher at end of [--] [--] & [--] yrs"steeper". Thx @JamesEagle17" [X Link](https://x.com/ClarenceWongCRE/status/1692543664248209515) 2023-08-18T14:27Z [----] followers, [----] engagements "Kinda funny. Just talked to a broker about a lease comp. Knows me from LinkedIn. Youre guy who puts out all that content right He continued I love that sh**. Very cool. Small world" [X Link](https://x.com/ClarenceWongCRE/status/1692645426720067993) 2023-08-18T21:11Z [----] followers, [----] engagements "Let the message sink in a bit & then formulate a poised response. So easy to rush & fire off responses that arent well thought through. Thread continues 🧵 1/ Credit: @jt_ryder" [X Link](https://x.com/ClarenceWongCRE/status/1692954578990370856) 2023-08-19T17:39Z [----] followers, [----] engagements "@ZeroBasis Throughfare map for new roads coming in etc. is pretty cool for path of development. Havent really noticed those before. Not sure every muni has them or maybe Ive never looked for them. Thx @ZeroBasis for sharing the cool video on how to look for land for development" [X Link](https://x.com/ClarenceWongCRE/status/1693509672052113765) 2023-08-21T06:25Z [----] followers, [---] engagements "@JulieChangRE Leaves & some branches laying on street due to wind/rain where I live. Were not used to getting dumped on in SoCal w/ rain like this. Could be a lot worse. Rain (light) & wind is dying down" [X Link](https://x.com/ClarenceWongCRE/status/1693513866431647980) 2023-08-21T06:42Z [----] followers, [---] engagements "Health ratio or rent-to-sales ratio for retail tenantstotal rent (incl. NNN reimbursements) / total tenant sales to assess strength of tenants financial health relative to rent. Health ratio ranges: Grocery: 1%-5% Restaurants: 6-10% Fitness: 15%-25% Apparel: 10-15%" [X Link](https://x.com/ClarenceWongCRE/status/1694335084206412269) 2023-08-23T13:05Z [----] followers, [----] engagements "@michaelwatson2 Sandwiches burgers tasty wings yummy desserts etc. Impressive food portfolio assembled & described above" [X Link](https://x.com/ClarenceWongCRE/status/1694845929709576370) 2023-08-24T22:55Z [----] followers, [---] engagements "@TiltWall Great post above. Below is more color on the Prologis clear lease as well as reimbursement structures for other asset classes explained throughout the thread" [X Link](https://x.com/ClarenceWongCRE/status/1695491959123829113) 2023-08-26T17:42Z [----] followers, [---] engagements "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. Lets do a deep drive on ground leases. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1695510547784188140) 2023-08-26T18:56Z [----] followers, 23.3K engagements "In [--] yrs or so theyll may end up demolishing the bldg anyway (outdated concept) & rebuilding here or relocating. Leased fee land owner may take control of the leasehold if its given back. 4/" [X Link](https://x.com/ClarenceWongCRE/status/1695510828693532764) 2023-08-26T18:57Z [----] followers, [---] engagements "Ground lease (leased fee) deals command a lower cap rate where investor owns land (& tenant owns bldg & pays ground rent or a fee). These are true absolute NNN lease deals since you dont worry about roof & structure maintenance etc. 5/" [X Link](https://x.com/ClarenceWongCRE/status/1695510999477162331) 2023-08-26T18:58Z [----] followers, [---] engagements "Keep in mind that after ground lease is up bldg goes to land owner at reversion unless bldg owner renews ground lease. Often times if bldg owner is a retailer/user itll demolish bldg & construct another by then since concept is outdated & useful life is up. 6/" [X Link](https://x.com/ClarenceWongCRE/status/1695511187751137531) 2023-08-26T18:59Z [----] followers, [---] engagements "This is diff than a ground lease (leasehold) positionperspective of tenant who owns its own bldg like a national quick service retail (QSR) chain (think holding on to bldg) but it pays ground rent to land owner. The QSR gets 100% depreciation on bldg (no land). 7/" [X Link](https://x.com/ClarenceWongCRE/status/1695511435911233919) 2023-08-26T19:00Z [----] followers, [---] engagements "@3NDeveloper A lot of collective property value above to potentially be discounted if they become distressed enough for disposition" [X Link](https://x.com/ClarenceWongCRE/status/1695856288683663533) 2023-08-27T17:50Z [----] followers, [---] engagements "@ArtemTepler Great point about the fees as well as having an experienced asset management / development team to successfully execute the business plan" [X Link](https://x.com/anyuser/status/1695856947499811210) 2023-08-27T17:52Z [--] followers, [---] engagements "@TheWolfofREI Great points above from @TheWolfofREI. Building & maintaining models is quantitative. Crafting a compelling story of the deal is qualitative" [X Link](https://x.com/ClarenceWongCRE/status/1697082270832816390) 2023-08-31T03:01Z [----] followers, [---] engagements "@3pillarsrei Large rental mark-to-market Opportunity to streamline expenses So NOI can grow DSCR can go up etc Positive leverage w/in [--] mos Buying an interest rate cap in the meantime" [X Link](https://x.com/ClarenceWongCRE/status/1697422518246916510) 2023-09-01T01:33Z [----] followers, [--] engagements "Stocks are typically more volatile & sensitive to global events compared to commercial real estate investments. That said capital markets conditions e.g. current high interest rate environment can make it tough for some to buy sell cover debt pmt refi" [X Link](https://x.com/ClarenceWongCRE/status/1698151637054070858) 2023-09-03T01:51Z [----] followers, [----] engagements "@jameseklein New normal right now for interest rates. Well see if the Fed can get rates down to the long-run target of 2% within a few years" [X Link](https://x.com/ClarenceWongCRE/status/1698386056503275924) 2023-09-03T17:22Z [----] followers, [--] engagements "@TheRealEstateG6 How much did it cost the buyer above all-in incl. tenant improvement allowance (TIA); leasing commission (LC); base bldg costs if it was a landlord build / build to suit (BTS)" [X Link](https://x.com/ClarenceWongCRE/status/1699051508665557445) 2023-09-05T13:27Z [----] followers, [---] engagements "@JTMartingCRE Firms & roles are bolded in resume #1 above which makes them pop a lot morethats my preference" [X Link](https://x.com/ClarenceWongCRE/status/1699226783617581355) 2023-09-06T01:03Z [----] followers, [---] engagements "That said entire lease term incl. if tenant ended up staying is called soft term; term up to termination option is hard term. 5/" [X Link](https://x.com/ClarenceWongCRE/status/1699533329689977320) 2023-09-06T21:21Z [----] followers, [---] engagements "If a tenant missed their notification period for a termination option theyre stuck for on the hook for the remaining term. 6/" [X Link](https://x.com/ClarenceWongCRE/status/1699533410501595359) 2023-09-06T21:21Z [----] followers, [---] engagements "For underwriting you may want to factor in mainly the hard term up to termination opt. Soft term past termination opt. isnt guaranteed. 7/ @UntrendedYOC @TheDukeofDirt" [X Link](https://x.com/ClarenceWongCRE/status/1699534473573052630) 2023-09-06T21:26Z [----] followers, [---] engagements "@UntrendedYOC @3NDeveloper @Nick_Keesee @TeamHerrold @realEstateTrent @Snowball_Dev @RE_Ari18 @Bethazor1 Below is a refresher thread 🧵 I just put together on termination options / kick-outs; soft term vs hard term etc. For underwriting might want to factor in mainly hard term up to termination opt. Soft term past termination opt. not guaranteed. @NNNIncome @3NDeveloper" [X Link](https://x.com/ClarenceWongCRE/status/1699535574942806077) 2023-09-06T21:30Z [----] followers, [---] engagements "There are often various counterparties involved in deals etc but they may move at a slower pace than youd like so setting up to-dos & following up is essential. 2/" [X Link](https://x.com/ClarenceWongCRE/status/1701971738924384273) 2023-09-13T14:50Z [----] followers, [---] engagements "There are often various counterparties involved in deals etc but they may move at a slower pace than youd like so setting up to-dos & following up is essential. 2/" [X Link](https://x.com/ClarenceWongCRE/status/1703793441958977676) 2023-09-18T15:29Z [----] followers, [---] engagements "For capital raising brokerage etc it can be helpful to utilize a customer relationship management system (CRM) for accountability & systematic follow-up. 3/" [X Link](https://x.com/ClarenceWongCRE/status/1703793504651296786) 2023-09-18T15:30Z [----] followers, [---] engagements "Variable-rate debt vs fixed-rate debt Interest only (I/O) vs amortizing debt Lets dive into this topic a bit more. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1703869879047393787) 2023-09-18T20:33Z [----] followers, [----] engagements "Keep in mind that what goes up must come down (not to recent historic lows of course). SOFR T-bill rates etc will eventually come down. 6/" [X Link](https://x.com/ClarenceWongCRE/status/1703870424155889766) 2023-09-18T20:35Z [----] followers, [---] engagements "@Theacqguy Agree w/ younear-term rollover is definitely a strong value-add lever to consider. Depends on lease terms seller is signing for these recent deals as it relates to wtd avg lease term (WALT). If you cant get to the leases during the hold you cant mark-to-market rents" [X Link](https://x.com/ClarenceWongCRE/status/1705298694629982583) 2023-09-22T19:11Z [----] followers, [--] engagements "@realEstateTrent Hopefully wont have crazy high rates like during the savings & loan (S&L) crisis in the 1980s. Makes the interest rates right now look cheap. Borrowers have gotten spoiled w/ historically low rates. Thx @realEstateTrent. Having some historical context & perspective matters" [X Link](https://x.com/ClarenceWongCRE/status/1708962662657536360) 2023-10-02T21:50Z [----] followers, [---] engagements "Gotta give it up to this Aussie family for not selling out to a residential home developer who built an entire community around them. This goes to show that money cant buy everything. This isnt an eminent domain situation eithercant just take" [X Link](https://x.com/ClarenceWongCRE/status/1710428797323862164) 2023-10-06T22:56Z [----] followers, [----] engagements "Tough for GPs to consistently hit 20%+ gross levered IRR on the property level nowadays in order for LPs to hit mid-teens net levered IRR. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1711375402625851777) 2023-10-09T13:37Z [----] followers, [----] engagements "Deal should have enough juice on its own along w/ some conservative debt in order to pencil. Shouldnt rely on using overly aggressive debt to hit returns. 3/" [X Link](https://x.com/ClarenceWongCRE/status/1711375654086984059) 2023-10-09T13:38Z [----] followers, [---] engagements "Prop-level underwriting assumptions should be realistic. Also the sooner you can get to spaces & execute biz plan the better. Further out is speculative. 4/" [X Link](https://x.com/ClarenceWongCRE/status/1711375764648787998) 2023-10-09T13:39Z [----] followers, [---] engagements "@rohindhar Most single family home buyers acquire for utility (to live in) & often on long-term fixed-rate debt. Bought/refid at low rates. Multifamily buyers acquire for investment. Some bought on floating-rate debt. Got in trouble when rates went up. Tough to refi now. @theredatadude" [X Link](https://x.com/ClarenceWongCRE/status/1711646935243968709) 2023-10-10T07:36Z [----] followers, [--] engagements "@TheDukeofDirt UW cap rate compression at your reversion from a stabilized start cap rate is definitely aggressive underwriting. As mentioned above this goes against what many of us learned in UW e.g. +10bps / yr of hold etc. to acct for obsolescence etc. Most savvy LPs wont go for this" [X Link](https://x.com/ClarenceWongCRE/status/1711830976337469842) 2023-10-10T19:48Z [----] followers, [---] engagements "@PolesMiami @TheDukeofDirt Also Im still seeing industrial development deals still out here in the Western US. I do understand that rents (still high here) & exit cap need to justify construction & land cost" [X Link](https://x.com/ClarenceWongCRE/status/1711851671423500598) 2023-10-10T21:10Z [----] followers, [--] engagements "Capital raisers might be able to structure fees / compensation similar to that of a GP but less the promote etc. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1712608536273043917) 2023-10-12T23:17Z [----] followers, [----] engagements "@chernobelskiy Also if youre tracking what you eat etc. I like Calorie Counter by FatSecret. Free version has bar code scanner. Syncs for resting/ active energy (walking) from Apple Health. Hevy app tracks energy burned via lifting wts & syncs to Apple Health; manually enter in FatSecret" [X Link](https://x.com/ClarenceWongCRE/status/1713773478933872910) 2023-10-16T04:26Z [----] followers, [---] engagements "@WSJ Birkenstocks have been around for a while. Crazy that theyre just now going public" [X Link](https://x.com/ClarenceWongCRE/status/1713805726429409715) 2023-10-16T06:35Z [----] followers, [---] engagements "@realEstateTrent When underwriting a deal its wise to talk to local CRE mkt leasing experts. Not just to understand which tenants are known vacates in the rent roll etc. Also to understand potential backfills & competitive set / lease comps etc. Thx SMG. @KornegayCapital @RepeGent" [X Link](https://x.com/ClarenceWongCRE/status/1714062287495967066) 2023-10-16T23:34Z [----] followers, [---] engagements "@realEstateTrent @KornegayCapital @RepeGent If you have a tight competitive set & lease comps you usually should be able to figure out your own MLAs for each space. Also each shop has its own underwriting philosophydowntime TI package LCs (incl. any overrides) capex scope etc" [X Link](https://x.com/ClarenceWongCRE/status/1714064748956770626) 2023-10-16T23:44Z [----] followers, [---] engagements "@CoyDavidsonCRE Creative way of putting it above. For the 10% of the stockspace nobody would lease ever in any economy this could be considered static vacancy from an underwriting perspective. This could come into play for a covered land play / redevelopment project too. @kenashley" [X Link](https://x.com/ClarenceWongCRE/status/1714068535704531143) 2023-10-16T23:59Z [----] followers, [---] engagements "If you buy at too high of a basis youre fighting an uphill battle from the start. The saying goes you make (or lose) money on the buy. Asset managers arent miracle workers. They can value engineer to a certain extent but likely not to make up for buying too high" [X Link](https://x.com/ClarenceWongCRE/status/1714366076300169356) 2023-10-17T19:41Z [----] followers, [----] engagements "@TheWolfofREI Not uncommon to use floating rate debt for value-add deals. Just make sure to buy an interest rate cap on that floating rate debt. @Theacqguy" [X Link](https://x.com/ClarenceWongCRE/status/1714368022797025723) 2023-10-17T19:49Z [----] followers, [---] engagements "@YOCspread Interesting point above about the dirt being moved as potentially contaminated" [X Link](https://x.com/ClarenceWongCRE/status/1714369167133196371) 2023-10-17T19:53Z [----] followers, [---] engagements "@chernobelskiy Youre referring to IRR partitioningbifurcating operating cash flow vs reversion cash flow. See below for more color on this. @AdventuresinCRE @spencerburtonRE" [X Link](https://x.com/ClarenceWongCRE/status/1714789277794754757) 2023-10-18T23:43Z [----] followers, [---] engagements "@TeddyBeingTeddy @TheRealEstateG6 If seller can make some lease deals to achieve high watermark rents leading up to sale it can help guide buyer in rent assumptions for underwriting" [X Link](https://x.com/ClarenceWongCRE/status/1715016406457311609) 2023-10-19T14:45Z [----] followers, [--] engagements "Keep in mind that if youre dividing by or capping NOI by a smaller fraction or cap rate you can think of it as multiplying by a higher multiple. Lets break this down in a thread. 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1715022541209911428) 2023-10-19T15:10Z [----] followers, [----] engagements "So a 5% cap equates to a 20x multiple to net operating income (NOI). Graph below shows that a lower cap rate yields a higher multiple to NOI. 2/" [X Link](https://x.com/ClarenceWongCRE/status/1715022675595464948) 2023-10-19T15:10Z [----] followers, [---] engagements "@RepeGent @MultifamilyRob Also notice that the Rite Aid pad sits on a desirable hard corner. May be separately parcelized; if so option to sell off in break-apart sale. To an owner-user or an investor who may have backfill tenant-in-tow" [X Link](https://x.com/ClarenceWongCRE/status/1715272015123554370) 2023-10-20T07:41Z [----] followers, [--] engagements "@RepeGent @MultifamilyRob That said this area seems pretty out there w/ all the forrest & open roads. Could be a lot tougher than usual to backfillmore suburban/rural. Hopefully investor considered this downside scenario & has a plan" [X Link](https://x.com/ClarenceWongCRE/status/1715273195639763015) 2023-10-20T07:46Z [----] followers, [--] engagements "@TripleNetInvest Relying on WeWork as your major tenant is kinda dicey. Downside scenario came to fruition in example above. Not a surprise about drop in value. Would need to backfill to get it up. Wonder if landlord get a letter of credit guarantee under parent entity. When I worked in office asset management one of our WeWork locations blew out & WeWork left. However luckily we had a letter of credit (LOC) set up to draw money down from. This was set up from the main parent entity not some shell LLC which made a difference. When I worked in office asset management one of our WeWork" [X Link](https://x.com/ClarenceWongCRE/status/1715547928184656334) 2023-10-21T01:57Z [----] followers, [----] engagements "9 Loans Totaling $299.8M Against Tides Equities-Owned Props Move to Special Servicer Each of the loans was provided by MF1 Capital which funded them through a collateralized loan obligation MF1 Ltd. 2022-FL9 a $1.8B deal that priced only in May 2022" [X Link](https://x.com/ClarenceWongCRE/status/1715909856874689015) 2023-10-22T01:56Z [----] followers, 72.1K engagements "@realEstateTrent On the investment sales brokerage side theres a range in price from go-to-market strike price & floor price. Seller & broker hope to get a price above the strike price close to go-to-market; may not sell at the floor price. Thx @realEstateTrent" [X Link](https://x.com/ClarenceWongCRE/status/1716151452429906069) 2023-10-22T17:56Z [----] followers, [---] engagements "@Theacqguy Youre still going to underwrite to base case upside & downside scenarios for sensitivity testing. If 25% IRR is base case hopefully theres some serious juice & clear path (ideally quickly) to get there. Need to convey this effectively w/ LPstough to find these. @RepeGent" [X Link](https://x.com/ClarenceWongCRE/status/1716881796678451485) 2023-10-24T18:18Z [----] followers, [---] engagements "@PERE_MD @RepeGent @TheRealEstateG6 At a prior shop I worked at we could say our parent company / co-GP could be the backstop & close if needed in the worse case scenario. If you have a fund besides doing JVs w/ single institutional LPs you could leverage that & say it might go to our fund or to a JV" [X Link](https://x.com/ClarenceWongCRE/status/1716889270236098911) 2023-10-24T18:47Z [----] followers, [--] engagements "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/" [X Link](https://x.com/ClarenceWongCRE/status/1716891349998596555) 2023-10-24T18:56Z [----] followers, [----] engagements "If you have a strong enough track record & existing partnerships w/ institutional LPs the chances of securing capital increases & helps instill confidence in your seller. 9/" [X Link](https://x.com/ClarenceWongCRE/status/1716895359694483593) 2023-10-24T19:12Z [----] followers, [---] engagements "Could also have institutional LPs who also GP own deals ideally core & core+ deals they can asset manage. Still considered a REPE shop. On value-add & opportunistic deals they may JV w/ other GPs w/ specialized asset experience &/or local expertise. 10/ @RepeGent @PERE_MD" [X Link](https://x.com/ClarenceWongCRE/status/1716896993694609789) 2023-10-24T19:18Z [----] followers, [---] engagements "@RepeGent @PERE_MD My former boss (in asset mgmt) worked at a large institutional LP shop who also asset manages their own GP core & core+ deals. He had a unique opportunity to take a out-positioned previously core deal & reposition it to become competitive again. He gained dev exp. this way. 11/" [X Link](https://x.com/ClarenceWongCRE/status/1716897982107595118) 2023-10-24T19:22Z [----] followers, [---] engagements "@RepeGent @PERE_MD @theredatadude GPs partner w/ institutional LPs considered real estate private equity (REPE) or syndicate w/ individual LPs (not considered REPE). Some argue that setting up fund w/ smaller LPs still makes it REPE. Does it really matter For clout Committed equity is nice in any case. 16/" [X Link](https://x.com/ClarenceWongCRE/status/1716906356106817856) 2023-10-24T19:55Z [----] followers, [---] engagements "@RepeGent @PERE_MD @theredatadude Programmatic JVs with institutional LPs still count as real estate private equity (REPE) partners in my opinion. There is a strategic relationship to deploy $x of LP institutional capital with the given GP. 17/ @trobertsBS" [X Link](https://x.com/ClarenceWongCRE/status/1716907856472178751) 2023-10-24T20:01Z [----] followers, [---] engagements "Below is a definition / delineation of real estate private equity (REPE) as it relates to funds & respective investor composition. 20/ @ClarenceWongCRE @RepeGent @theredatadude I have worked at one of the largest PE firms in the world and agree that this is the correct delineation. Those who are raising capital in private fund formats with closed-ended structures and accredited institutional LPs are the authentic real estate private equity shops. @ClarenceWongCRE @RepeGent @theredatadude I have worked at one of the largest PE firms in the world and agree that this is the correct delineation." [X Link](https://x.com/ClarenceWongCRE/status/1716913286695030896) 2023-10-24T20:23Z [----] followers, [---] engagements "@chernobelskiy @realEstateTrent @Keith_Wasserman Downside scenario is having to backfill. Make sure you can live with the location. Tertiary areas make it much tougher to backfill space in CRE" [X Link](https://x.com/ClarenceWongCRE/status/1716943522086142401) 2023-10-24T22:23Z [----] followers, [---] engagements "@chernobelskiy @realEstateTrent Downtime & retenanting costs incl. TI/LC will eat into your return / cash flow" [X Link](https://x.com/ClarenceWongCRE/status/1716943912487866657) 2023-10-24T22:25Z [----] followers, [---] engagements "@3NDeveloper Sale leaseback is a way for the owner-user to unlock equity to reinvest in its business; in return it becomes a tenant. Need to ensure that parent company is guarantor per post above. Also this tenant/user may pay over market rent; affects residual value. Thanks @3NDeveloper" [X Link](https://x.com/ClarenceWongCRE/status/1716949303145660501) 2023-10-24T22:46Z [----] followers, [---] engagements "@RepeGent @PERE_MD Chart above explains that a joint venture (JV) only has a single capital partner (LP) which is often times institutional. A syndication involves multiple individual capital partners. Might utilize a capital raiser (syndicator) etc to help raise the equity" [X Link](https://x.com/ClarenceWongCRE/status/1716965821027905999) 2023-10-24T23:52Z [----] followers, [--] engagements "With exception of Real Estate Securities (public REITs etc) & debt below you could be dealing w/ real estate private equity (REPE). These institutional investors/ advisors may invest directly indirectly; via a fund/fund of funds acct JV club etc. 21/ @PERE_MD @RepeGent" [X Link](https://x.com/ClarenceWongCRE/status/1716969083953168659) 2023-10-25T00:05Z [----] followers, [----] engagements "@PERE_MD @RepeGent For equity funds size typically refers to equity capital committed by institutional investors plus GP equity. Leverage typically isnt included. So a $100M equity fund w/ 50% leverage has $200M of purchasing power. Thanks @USAisCRE for sharing definition below from PERE. 22/" [X Link](https://x.com/ClarenceWongCRE/status/1716971496193827015) 2023-10-25T00:14Z [----] followers, [---] engagements "@theredatadude So the higher the prop value &/or AUM the higher the fees. See @realEstateTrents thread below. That said its likely that the GP @NNNIncome spoke w/ today has a decent amount of AUM & fees. 6/" [X Link](https://x.com/ClarenceWongCRE/status/1717651686003786076) 2023-10-26T21:17Z [----] followers, [---] engagements "@theredatadude @realEstateTrent @NNNIncome One way of never giving the money back as @NNNIncomes GP alluded to is doing a [----] exchange. So roll net proceeds into another deal or multiple deals (like kind) to defer taxes. GP would like to be on this [----] exchange deal as well & continue collecting fees. 7/" [X Link](https://x.com/ClarenceWongCRE/status/1717652685103759758) 2023-10-26T21:21Z [----] followers, [----] engagements "@RothCRE Interested. Please DM the PDF overview thanks" [X Link](https://x.com/ClarenceWongCRE/status/1718352972948844903) 2023-10-28T19:44Z [----] followers, [----] engagements "Will we start seeing more small-format 2500-SF drug stores vs traditional 11K-15K SF ones Drug stores will then eventually become end-cap etc shop tenants vs traditional anchors. This will allow drug stores to focus on their core competencyselling prescription (RX) drugs" [X Link](https://x.com/ClarenceWongCRE/status/1719760846497431765) 2023-11-01T16:58Z [----] followers, [----] engagements "Not a surprise that WeWorks shares have dropped so much. Burning through all your investors cash doesnt help. Great additional color below from @UntrendedYOC" [X Link](https://x.com/ClarenceWongCRE/status/1720165247414407518) 2023-11-02T19:45Z [----] followers, [----] engagements "@moseskagan @ArtemTepler @moseskagan & @Keith_Wasserman @ArtemTepler held both of you in high regard during our DM conversation when he started to get active on #Retwit this year. Hell be missed. RIP" [X Link](https://x.com/ClarenceWongCRE/status/1720277162773893536) 2023-11-03T03:10Z [----] followers, [----] engagements "@hussain_nathoo Price per square foot (PSF) or price per pound & yield on cost (YoC) etc are what many buyers are focused on for office esp. if property isnt stabilized w/ credit & cash flow is iffy" [X Link](https://x.com/ClarenceWongCRE/status/1720461347622879555) 2023-11-03T15:22Z [----] followers, [---] engagements "@GellnerDavid Above sounds like negative holdover rent i.e. a 50% reduction. Only 50% of current rent vs typical 125-150% of current rent on holdover. @TripleNetInvest" [X Link](https://x.com/ClarenceWongCRE/status/1720597123220255063) 2023-11-04T00:21Z [----] followers, [---] engagements "Interests should stay aligned not just between GP & LP but also amongst GP principals. If that changes it could make sense to part ways as described in case study below. Thx for sharing @rbradthomas. Had no idea of your backgroundjust knew you were a top REIT analyst" [X Link](https://x.com/ClarenceWongCRE/status/1720811514800878022) 2023-11-04T14:33Z [----] followers, [----] engagements "@jt_ryder Docusign email might have gone into recipients spam folder. You should be able to track if theyve received/opened it. Also have functionality to push out a reminder etc. Sometimes theres a reason why other party is slow playing process. Thx @jt_ryder" [X Link](https://x.com/ClarenceWongCRE/status/1720874129145077776) 2023-11-04T18:42Z [----] followers, [---] engagements "Yield curve disinverted recently. Recession around the corner This has been a leading indicator for prior recessions as seen below. Welcome your thoughts on the topic. Thanks" [X Link](https://x.com/ClarenceWongCRE/status/1720882734753894510) 2023-11-04T19:16Z [----] followers, [----] engagements "@TheoPhysiJ LIHTC does give you some buffer on capex & underwriting w/ government tax credits etc" [X Link](https://x.com/ClarenceWongCRE/status/1720887391718924512) 2023-11-04T19:35Z [----] followers, [--] engagements "Institutional LPs still need lease comps etc to take the deal to their investment committee (IC) even if vacancy is sub 3%. Yes you can backfill spaces but which props do you compete against & whats OpEx space condition TI needed & rent you can hit" [X Link](https://x.com/ClarenceWongCRE/status/1721206310669320394) 2023-11-05T16:42Z [----] followers, [----] engagements "@jandreini1 To clarify is Walgreens exercising a ROFR to purchase & then structuring a sale leaseback (flipping to new buyer who originally helped trigger the ROFR) at a higher rent & new extended lease for a profit @youngmogul4life @KeeganMulcahyRE" [X Link](https://x.com/ClarenceWongCRE/status/1721241423109029940) 2023-11-05T19:01Z [----] followers, [----] engagements "@UntrendedYOC WeWork blew through SoftBank investment money raised via IPO etc. Now filed for BK" [X Link](https://x.com/ClarenceWongCRE/status/1721265454092861739) 2023-11-05T20:37Z [----] followers, [---] engagements "@realEstateTrent Is they call you boss is that acceptable Has chief vibes" [X Link](https://x.com/ClarenceWongCRE/status/1721558179472117797) 2023-11-06T16:00Z [----] followers, [---] engagements "@Keith_Wasserman Dry powder is out there" [X Link](https://x.com/ClarenceWongCRE/status/1721561044857024876) 2023-11-06T16:11Z [----] followers, [---] engagements "If you cant buy you rent. Good for multifamily build-to-rent (BTR) etc. Renting also provides more flexibility & mobility. Although you can rent out a SFR it ties you down financially etc" [X Link](https://x.com/ClarenceWongCRE/status/1721635331412492567) 2023-11-06T21:07Z [----] followers, [----] engagements "@TeamHerrold Developer will need to hold on to the SBUXs that dont sell then. Equity will be tied up in these in the meantime" [X Link](https://x.com/ClarenceWongCRE/status/1721653187504156960) 2023-11-06T22:18Z [----] followers, [---] engagements "Buying a portfolio of [--] vacant big-box stores formerly occupied by Big Lots involves lease-up risk to backfill. Youre taking properties w/ $0 cash flow & creating value. Red Mountain backfilled the majority of these; also sold a vacant store recently to another developer" [X Link](https://x.com/ClarenceWongCRE/status/1721735025119662517) 2023-11-07T03:43Z [----] followers, 10.2K engagements "@AaronAZucker @AaronAZucker is able to put his own tenants into vacant bank bldgs. Pretty cool. Nice to have your own tenant in your back pocket to use. Its like a built-in tenant in tow / prelease. @johnmckeeDC @Bethazor1" [X Link](https://x.com/ClarenceWongCRE/status/1721986791811768325) 2023-11-07T20:23Z [----] followers, [---] engagements "McDonalds Chipotle to hike menu prices after CA Gov. Newsom approves $20 fast food min wage Chipotlelikely prices in CA by "mid-to-high single-digit" %. McDwill explore ways to improve productivity & reduce restaurant-level exp + prices. https://tinyurl.com/4xd98zap https://tinyurl.com/4xd98zap" [X Link](https://x.com/ClarenceWongCRE/status/1722072957500244313) 2023-11-08T02:06Z [----] followers, [---] engagements "Interesting questions posed below. Lets take a deeper dive into this. Welcome to hear your thoughts as well. Thread continues 🧵 1/" [X Link](https://x.com/ClarenceWongCRE/status/1722333965456179446) 2023-11-08T19:23Z [----] followers, [----] engagements "If you have expertise to entitle & have time since carry costs are involved you could do the work to add value. 4/" [X Link](https://x.com/ClarenceWongCRE/status/1722334269341839381) 2023-11-08T19:24Z [----] followers, [--] engagements "If you were developer besides apartments & townhomes build-to-rent (BTR) could be interesting. 5/" [X Link](https://x.com/ClarenceWongCRE/status/1722334353634758929) 2023-11-08T19:24Z [----] followers, [--] engagements "Latter gives provides a single family feel which is great for retirees &/or families. Maybe do a mix of MF & BTR. 6/" [X Link](https://x.com/ClarenceWongCRE/status/1722334496903848070) 2023-11-08T19:25Z [----] followers, [---] engagements "@CoyDavidsonCRE @CarolWalshReal1 @kenashley @X I do enjoy participating & engaging on @X for CRE. I genuinely enjoy it so Im glad to do it consistently" [X Link](https://x.com/ClarenceWongCRE/status/1722494577180086656) 2023-11-09T06:01Z [----] followers, [---] engagements "Interesting that Costco a prior adjacent shadow anchor has opted to become a landlord & buy out adjacent center w/ various box & junior box tenants below from special servicer LNR. Dont see this often" [X Link](https://x.com/ClarenceWongCRE/status/1722623969956954481) 2023-11-09T14:35Z [----] followers, [----] engagements "@JohnPlatner @yunowudds @Costco real estate development team hard at work" [X Link](https://x.com/ClarenceWongCRE/status/1722631637148864547) 2023-11-09T15:06Z [----] followers, [--] engagements "@yunowudds @JohnPlatner see below for my thoughts on Costco anchoring the ground floor above apartments in urban environments. Thanks for commenting" [X Link](https://x.com/ClarenceWongCRE/status/1722634982668349741) 2023-11-09T15:19Z [----] followers, [---] engagements "@DFWJoeAskew @Tehan55 Makes sense. Anchors & jr anchors help drive foot traffic to the center anyways. Pads if there are some will block visibility here & there. Landlord will structure REA accordingly. If smaller credit tenants want some visibility they could negotiate to be on pylon sign etc" [X Link](https://x.com/ClarenceWongCRE/status/1722813778608472411) 2023-11-10T03:09Z [----] followers, [--] engagements "@actionmike_ See article below. Spread varies based on asset class fixed vs floating rate debt risk profile lender etc. Not a science. For floating rate-bridge debt its typically a spread over SOFR. For fixed rate its a spread over x-yr Treasury; x=maturity" [X Link](https://x.com/ClarenceWongCRE/status/1723456433206018524) 2023-11-11T21:43Z [----] followers, [--] engagements "Lender spread varies based on asset class fixed vs floating rate debt LTV/LTC risk profile lender etc. Not a science. For floating rate-bridge debt usually its spread over SOFR. For fixed rate its can be spread over x-yr Treasury; x=maturity" [X Link](https://x.com/ClarenceWongCRE/status/1723457732060299684) 2023-11-11T21:48Z [----] followers, [----] engagements "@realEstateTrent Need to factor in time value of money (TVM) for example above. $5M value is x years $5M today. Use a discount rate on the $5M reversion value in x years to get a net present value (NPV). Thanks @realEstateTrent" [X Link](https://x.com/ClarenceWongCRE/status/1724464115668881629) 2023-11-14T16:27Z [----] followers, [---] engagements "Need to factor in time value of money (TVM) for ex. below. $5M value in x years $5M today. Use discount rate on $5M exit value (& operating CF) for x yrs to get net present value (NPV). Like asking me to pay same proforma value (after value created) now as purchase price. I don't know who needs to hear this but if a property is going to be worth $5M after I spend years adding a bunch of value you're weird for asking $5M now I don't know who needs to hear this but if a property is going to be worth $5M after I spend years adding a bunch of value you're weird for asking $5M now" [X Link](https://x.com/ClarenceWongCRE/status/1724466556703551776) 2023-11-14T16:37Z [----] followers, [----] engagements "@NNNIncome @ChipotleTweets Chipotle will be hungry for your next deal. Agree with your decision to go w/ the regional tenant. Burning that bridge & going back on your word wouldnt be the best. Great case study. Thanks for sharing @NNNIncome. UPDATE: Our team evaluated this for a day and all decided unanimously we had a deal struck with the regional and that was the best path forward for the property / ownership group. What a good problem to be debating by the way. Drive thrus remain red hot in the retail sector. UPDATE: Our team evaluated this for a day and all decided unanimously we had a" [X Link](https://x.com/ClarenceWongCRE/status/1725182739845099945) 2023-11-16T16:03Z [----] followers, [---] engagements "REIT M&A is about size & scale & synergiesincl. buying smaller firms (& properties) at sizable discount to net asset value (NAV). Great takeaways from the podcast below. Thread 🧵 continues 1/" [X Link](https://x.com/ClarenceWongCRE/status/1725646500146065414) 2023-11-17T22:46Z [----] followers, [----] engagements "Leverage increased by 75-85% to 95% on Fannie Mae loans for 2-4 unit multifamily allowing real estate investors to more easily start their house hack i.e. live in a unit & lease out rest" [X Link](https://x.com/ClarenceWongCRE/status/1725970239916273909) 2023-11-18T20:12Z [----] followers, 23.8K engagements "@TheCashFlow_Guy Are rental payments (lets assume net cash flow before debt service) also enough to cover principal payments assuming loan is amortizing If not youre still underwater" [X Link](https://x.com/ClarenceWongCRE/status/1725991167786143950) 2023-11-18T21:35Z [----] followers, [--] engagements "Heavy hitters like @realEstateTrent @BobKnakal @sweatystartup have embraced @LinkedIn. Many knock on @LinkedIn but its still one of my favorite social media platforms. So Im proud to be a @LinkedIn Top CRE Voice. Also committed to @X for the long haullove CREX / Retwit" [X Link](https://x.com/ClarenceWongCRE/status/1726396235375099962) 2023-11-20T00:25Z [----] followers, [--] engagements "@JTMartingCRE Good to identify active CRE buyers (new debt) & existing owners (refi / restructure). @CoStarGroup @MSCI_Inc (formerly Real Capital Analytics aka RCA) are good sources for buyers/sellers. Could also leverage @TreppWire along w/ CoStar & RCA to help find distressed borrowers" [X Link](https://x.com/ClarenceWongCRE/status/1726406318871945394) 2023-11-20T01:05Z [----] followers, [---] engagements "@JTMartingCRE @CoStarGroup @MSCI_Inc @TreppWire You want to find the active buyers & be part of conversation for consideration on new debt. Ive listed some providers above where you can track down these potential borrowers" [X Link](https://x.com/ClarenceWongCRE/status/1726407249202180449) 2023-11-20T01:08Z [----] followers, [---] engagements "@JTMartingCRE @CoStarGroup @MSCI_Inc @TreppWire Also learn appropriate lenders for permanent debt bridge debt etc. Youre a broker & will play matchmaker to lender/borrower" [X Link](https://x.com/ClarenceWongCRE/status/1726407540769173704) 2023-11-20T01:10Z [----] followers, [--] engagements "@Jeffdthompson Very cool. Below is my Twitter Circle" [X Link](https://x.com/ClarenceWongCRE/status/1726410365481968114) 2023-11-20T01:21Z [----] followers, [---] engagements "@tyleralley24 Break-up sales are a good way to lower your basis for a deal during the hold. Never heard of doing a break-up sale while simultaneously initially closing on the entire multi-parcel side. Great ex. above. Then spinning off another during hold & finally developing last parcel" [X Link](https://x.com/ClarenceWongCRE/status/1726413472546828372) 2023-11-20T01:33Z [----] followers, [---] engagements "@sweatystartup Mentor can ask you questions to help get you thinking deeper about the situation so you can figure out what you really want to do & next steps. Your mentor isnt you. Trying to get your mentor to tell you what they would do isnt necessarily whats best for you" [X Link](https://x.com/ClarenceWongCRE/status/1726507479633432886) 2023-11-20T07:47Z [----] followers, [---] engagements "@heIpfullandlord Often times investors re-invest net proceeds from capital event e.g. refi or sale (could be a [----] exchange) back into real estate. So yes equity is often locked up in real estate. Net cash flow after debt service is nice but often times most of value is in reversion/exit" [X Link](https://x.com/ClarenceWongCRE/status/1726518409461158105) 2023-11-20T08:30Z [----] followers, [---] engagements "@maxfisherRE Try to solve to next buyers return for property value above" [X Link](https://x.com/ClarenceWongCRE/status/1726533816389701970) 2023-11-20T09:31Z [----] followers, [---] engagements "@PERE_MD So an under supply of CRE opportunities for dry powder. Only $180Bn of opportunities for $257Bn of dry powder. At least $77Bn will continue to sit on the sidelines" [X Link](https://x.com/ClarenceWongCRE/status/1726647503922381117) 2023-11-20T17:03Z [----] followers, [---] engagements "@AvivaRealEstate So how did you negotiate the broker above to back down & split the 4% 50/50 vs 1% to you & 3% to him" [X Link](https://x.com/ClarenceWongCRE/status/1726739154745364720) 2023-11-20T23:07Z [----] followers, [---] engagements "@RepeGent @moseskagan Yes acquisitions teams need to keep buying & asset management teams need enough assets to AM w/ enough AM fees to help keep the lights on" [X Link](https://x.com/anyuser/status/1727030511179370781) 2023-11-21T18:25Z [--] followers, [--] engagements "Some interesting points below on high net worth (HNW) investors or family offices. Ill share my experience having interned for one to tie in my perspective. Thread 🧵 continued below" [X Link](https://x.com/ClarenceWongCRE/status/1727036207199383731) 2023-11-21T18:48Z [----] followers, [----] engagements "Some family offices also like to do [----] exchanges on all if not most of their deals. I interned for one & that was a modus operandi (MO). 1/" [X Link](https://x.com/ClarenceWongCRE/status/1727036288207917178) 2023-11-21T18:48Z [----] followers, [---] engagements "This is in contrast to holding all assets indefinitely ♾. Instead hold any given upleg for unforeseen future until deal is ready to harvest to max value. 2/" [X Link](https://x.com/ClarenceWongCRE/status/1727036539891564801) 2023-11-21T18:49Z [----] followers, [---] engagements "As mentioned above theres not necessarily a hold period shot clock although regular hold-&-sell analyses were common to help reevaluate. 3/" [X Link](https://x.com/ClarenceWongCRE/status/1727036723497222231) 2023-11-21T18:50Z [----] followers, [---] engagements "As for leverage family office I interned used leverage but its not to say that others might not do all-cash deals sometimes (heard this). 4/" [X Link](https://x.com/ClarenceWongCRE/status/1727037162997301565) 2023-11-21T18:52Z [----] followers, [---] engagements "As for CRE staff most came from outside from real estate private equity (REPE) etc to help bring that type of experience in-house. 5/" [X Link](https://x.com/ClarenceWongCRE/status/1727037778997981664) 2023-11-21T18:54Z [----] followers, [---] engagements "@JTMartingCRE Cool to be part of your inner circle @JTMartingCRE" [X Link](https://x.com/ClarenceWongCRE/status/1727038396286357821) 2023-11-21T18:56Z [----] followers, [--] engagements "@maxfisherRE Interesting anecdote above on more crime committed & homeless for industrial properties near residential. Would be great if some PhD did some research & wrote up a white paper on this" [X Link](https://x.com/ClarenceWongCRE/status/1727039182944804958) 2023-11-21T19:00Z [----] followers, [---] engagements "@jandreini1 Parcelization for a break-up strategy & having excess land zoned for QSR etc to develop w/ optionality to also spin off can great value & lower basis. Thanks @jandreini1 for sharing the post along w/ the case study. Congrats on the deal" [X Link](https://x.com/ClarenceWongCRE/status/1727043070217384375) 2023-11-21T19:15Z [----] followers, [----] engagements "@shawngorham Sorry to hear. Which place did you come in You can hang around the hoop in case current buyer blows out" [X Link](https://x.com/ClarenceWongCRE/status/1727044473124008073) 2023-11-21T19:21Z [----] followers, [---] engagements "@tyleralley24 Dont need to herd the subcontractor cats right now it sounds like above. Things are tightertheyre hungry & ready to work on existing deals. Makes it easier when they show up" [X Link](https://x.com/ClarenceWongCRE/status/1727045430922596382) 2023-11-21T19:24Z [----] followers, [--] engagements "@shawngorham Within striking distance. Nice" [X Link](https://x.com/anyuser/status/1727045546551222475) 2023-11-21T19:25Z [--] followers, [---] engagements "@Bethazor1 Not uncommon to also include the NNNs in addition to the bldg rent to give you an all-in rent for the Health Ratio calculation above. Thanks @Bethazor1" [X Link](https://x.com/ClarenceWongCRE/status/1727046279904239854) 2023-11-21T19:28Z [----] followers, [---] engagements "A managing intern managing [--] other interns is pretty wild. The blind the leading the blind & just for a 3-month stint too. 🤣" [X Link](https://x.com/ClarenceWongCRE/status/1727097336751644717) 2023-11-21T22:51Z [----] followers, 18.7K engagements "@rhunterh @RepeGent Thats a step up from Managing Intern" [X Link](https://x.com/ClarenceWongCRE/status/1727097785273786502) 2023-11-21T22:52Z [----] followers, [--] engagements "@PaulMLeu Interesting to compare perspectives on the same topic. Glad this thread is helpful @PaulMLeu" [X Link](https://x.com/ClarenceWongCRE/status/1727098788471599135) 2023-11-21T22:56Z [----] followers, [--] engagements "@ADeermount What about slapping every designation etc you can behind your name For ex. CPM is higher than ACoM so latter is unnecessary; also if youre in CRE can prob drop RPA. @chernobelskiy @acquisizioni" [X Link](https://x.com/ClarenceWongCRE/status/1727100917466743268) 2023-11-21T23:05Z [----] followers, [---] engagements "@cap_rate_prince Yup the king of interns 👑 above" [X Link](https://x.com/ClarenceWongCRE/status/1727101518049058961) 2023-11-21T23:07Z [----] followers, [---] engagements "@chernobelskiy Gotta give it to the person above for being creative on the resume / LinkedIn. 🤣" [X Link](https://x.com/ClarenceWongCRE/status/1727101926146490627) 2023-11-21T23:09Z [----] followers, [---] engagements "@ChadGriffiths Love the PowerPoint type slide show vibelive drawing of the parcel boundary from an oblique aerial video" [X Link](https://x.com/ClarenceWongCRE/status/1727103298560528771) 2023-11-21T23:14Z [----] followers, [---] engagements "@vmatthewt @realEstateTrent For CRE 100% owner-user sales you arent pitching the property for income but for the utility so some similarities in that regard" [X Link](https://x.com/ClarenceWongCRE/status/1727105561358152086) 2023-11-21T23:23Z [----] followers, [--] engagements "@ShlomoChopp Definitely here for the CREX / Retwit community not to hero worship. Can relate to many others on here so its fun & an outlet. There are also so many others to learn from. Experts in diff disciplines. Lucky to have this great CRE community on @X" [X Link](https://x.com/ClarenceWongCRE/status/1727106694168338828) 2023-11-21T23:28Z [----] followers, [---] engagements "@mjznyc Yeh in all seriousness this could have been made up for all we know. Someone shared it & it just made me crack up so I wanted to share it" [X Link](https://x.com/ClarenceWongCRE/status/1727127604057329696) 2023-11-22T00:51Z [----] followers, [--] engagements "@ChadGriffiths @jasoncoxnc @khzny Sounded like @khzny would have been a good follow. He was on @fortworthchris podcast before too. Thx & love your new Not A Media Account name @jasoncoxnc" [X Link](https://x.com/ClarenceWongCRE/status/1727130892899148144) 2023-11-22T01:04Z [----] followers, [---] engagements "@realestatejayz Yeh I thought a bigger account followed me the other day & got excited but found out it was also a fake account" [X Link](https://x.com/ClarenceWongCRE/status/1727133922964934748) 2023-11-22T01:16Z [----] followers, [--] engagements "@acquisizioni Mobile ad that will ride via bike your advertisement all around town. Perfect for crowded streets where its congested with cars" [X Link](https://x.com/ClarenceWongCRE/status/1727135772044882423) 2023-11-22T01:23Z [----] followers, [--] engagements "@maxfisherRE Nice prior owner was not leasing out the fenced yard separately Where they just throwing in fenced yard for free to last tenant etc" [X Link](https://x.com/ClarenceWongCRE/status/1727137214499536996) 2023-11-22T01:29Z [----] followers, [---] engagements Limited data mode. Full metrics available with subscription: lunarcrush.com/pricing
@ClarenceWongCRE Clarence Wong, CCIM
Clarence Wong, CCIM posts on X about debt, investment, money, cash flow the most. They currently have [-----] followers and [----] posts still getting attention that total [------] engagements in the last [--] hours.
Engagements: [------] #
Mentions: [--] #
Followers: [-----] #
CreatorRank: [-------] #
Social Influence
Social category influence finance currencies technology brands stocks social networks countries celebrities travel destinations cryptocurrencies automotive brands
Social topic influence debt, investment, money, cash flow #886, commercial real estate, cre, insurance, acquisition, if you, asset management
Top assets mentioned GrokCoin (GROKCOIN) Dogecoin (DOGE) Costco Wholesale Corporation (COST) Alphabet Inc Class A (GOOGL) RAMP (RAMP) Stifel Financial Corp. (SF) Reserve (RSV) Uber Technologies, Inc. (UBER) pizzacoin (PIZZACOIN)
Top Social Posts
Top posts by engagements in the last [--] hours
"Check out graph below from Moody's Analytics illustrating this example. This gives you an idea of how much ann. rent growth buyer would need to hold prop value given cap rate expansion sensitivity. (2/2) #CREValueAdd #CRE #commercialrealestate #retwit"
X Link 2022-12-17T07:00Z [----] followers, [---] engagements
"Also keep in mind time value of money (TVM)money sooner is worth more (& discounted less) vs money later (discounted more). #CREValueAdd #CRE #commercialrealestate #retwit"
X Link 2022-12-17T23:50Z [----] followers, [--] engagements
"@bobbyfijan Theres a good chance that this ground-up development is a prelease or tenant-in-tow. Time value of money (TVM) with a compressed 18-month hold timeframe juices IRR"
X Link 2022-12-22T06:30Z [----] followers, [---] engagements
"@SimpleCRE @TeamHerrold Interest case study above. Developer is offering rent bump guarantee for the 15-year termbumps every five years as part of the sale. Youll sometimes see 10% every [--] years which averages to 2% / year but less w/ time value of money (TVM). Give me 20% / [--] yrs maybe"
X Link 2023-02-16T06:30Z [----] followers, [---] engagements
"Considering the three (3) scenarios above keep in mind also that IRR is typically comprised of operating cash flows throughout the hold & reversion cash flow from net sale proceeds at exit. 5/"
X Link 2023-02-20T15:17Z [----] followers, [----] engagements
"Factoring in time value of money (TVM) in the three (3) scenarios above the further out the cash flow (CF) in the hold period the heavier its discounted i.e. CF / (1+discount rate)(given period). 6/"
X Link 2023-02-20T15:18Z [----] followers, [---] engagements
"Have you ran across below-market rents in CRE or loss (or gain) to lease in multifamily How does it work Lets break this down Thread 🧵 continues 1/"
X Link 2023-03-07T15:52Z [----] followers, [----] engagements
"Interesting vernacular below. I got my pandemic mortgage or refi back in"
X Link 2023-03-09T14:19Z [----] followers, [----] engagements
"10 years of experience is a bit of an exaggeration but be sure to get that internship experience during undergrad &/or graduate school. This is so important especially in commercial real estate (CRE) to help land that job post-graduation. Competition is fierce nowadays"
X Link 2023-03-10T14:30Z [----] followers, [----] engagements
"Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC. 7/"
X Link 2023-03-27T13:50Z [----] followers, [---] engagements
"In addition the FDIC received equity appreciation rights in First Citizens BancShares Inc. Raleigh North Carolina common stock with a potential value of up to $500 million. 8/"
X Link 2023-03-27T13:50Z [----] followers, [---] engagements
"@scottdavisCRE @bethanyjbabcock Sounds like brokers go-to-market price was too aggressive (couldnt hit it) & ending up hitting strike price that you originally recommended (value priced to sell). Owner may consider doing a tiered commission structure w/ brokerpay more if broker can knock it out of the park"
X Link 2023-04-30T23:54Z [----] followers, [--] engagements
"@tommyizim0 @realEstateTrent Even if you used much higher discount rate than below youre still better off paying the $50 upfront. Plugged in a 20% discount rate & the XNPV (net present value) came out to $81. As @RyanGTuttle explained in his comment need to factor in time value of money (TVM) here. @realEstateTrent If you run an XNPV calc using a 6% 7% or 8% discount rate on $4 a month paid over the next [--] months it comes out to around $90 in todays dollars. So paying $50 upfront is the lower-cost option. @realEstateTrent If you run an XNPV calc using a 6% 7% or 8% discount rate on $4 a"
X Link 2023-06-04T18:45Z [----] followers, [---] engagements
"If you run an XNPV calc using a 6% 7% or 8% discount rate on $4 a month paid over next [--] mos it comes out $90 in todays dollars. So paying $50 upfront is the lower-cost option. Need to factor in the time value of money (TVM). Thanks @realEstateTrent. Amazing how many people think it's a better deal to pay $4 a month over the next [--] years than $50 today Amazing how many people think it's a better deal to pay $4 a month over the next [--] years than $50 today"
X Link 2023-06-04T18:53Z [----] followers, [----] engagements
"If you lever & have a debt payment after factoring that in along w/ leasing & capex costs you get levered net cash flow. Levered net CF / equity invested = cash-on-cash. Similar to in-place cap rate but factors in debt & leasing/capex costs. 7/"
X Link 2023-06-17T06:04Z [----] followers, [---] engagements
"That said you could think of year [--] cash-on-cash as a year [--] discount rate since discount rate is typically applied to net cash flow. Also discount rate is a time value of money (TVM) calc so effective discount rate is higher later during the hold period. 8/"
X Link 2023-06-17T06:05Z [----] followers, [---] engagements
"So on an absolute dollar amount institutional LPs still invest & deploy large amts of equity & make large amts of money on their investments. They dont need to acquire deals unlevered; sometimes end up doing (all) cash to close & then add on debt post closing. 5/"
X Link 2023-06-28T04:47Z [----] followers, [---] engagements
"Assuming 4.8% is a stabilized market cap yield on cost (YOC) of 4.5% is [---] bps under in example below. Ideally YOC is [---] to 200+ bps over mkt exit cap for juice to be worth the squeeze. Dont want to be losing return on the exit. Need spread to generate enough profit"
X Link 2023-06-27T14:43Z [----] followers, [--] engagements
"@jandreini1 5% increase every [--] years is even worse than 1% per year. With the latter at least you get 1% each year & it compounds. Example above is an anti-hedge against inflation"
X Link 2023-06-28T14:36Z [----] followers, [---] engagements
"Each buyers proforma cap or return on cost could be different based on assumed market rents capex scope lease-up schedule business plan etc"
X Link 2023-06-30T03:10Z [----] followers, [---] engagements
"@TheWolfofREI How about demising the big units into smaller spec / turnkey / move-in suites Could this make sense from a return on cost perspective if you factor in demising costs Is demand there for these smaller spaces & is juice worth the squeeze here @kenashley @creromans"
X Link 2023-06-30T03:22Z [----] followers, [---] engagements
"Proud of our BKM Capital Partners team on acquiring Commerce Carlsbad an eight-building multi-tenant industrial park in Carlsbad CA. Thread continues 🧵 1/"
X Link 2023-07-11T14:27Z [----] followers, [----] engagements
"Available industrial spaces 50K SF in San Diego are currently leasing at a record average pace of [---] months per Brett Turner head of acquisitions. 12/"
X Link 2023-07-11T13:56Z [----] followers, [---] engagements
"Were confident that w/ our planned improvements we will bring the rebranded Pacific Coast Industrial Center to full occ. & mkt rates well w/in our anticipated hold period. 13/"
X Link 2023-07-11T13:56Z [----] followers, [---] engagements
"@Snowball_Dev This is our first true coastal light industrial deal just a quarter mile from the ocean (unique) so were especially excited about this one. Thanks @Snowball_Dev"
X Link 2023-07-11T14:27Z [----] followers, [--] engagements
"@Snowball_Dev Notice how close we are to the Pacific Ocean"
X Link 2023-07-11T14:27Z [--] followers, [--] engagements
"@ADeermount @RussellLowery10 That said when a tenant leaves you may need to demo (demolish) some part of the suite to configure for another tenant. Ideally you can save some of the space & retain some residual value. For older more inefficient spaces you may need to demo & white box"
X Link 2023-07-16T15:02Z [----] followers, [---] engagements
"@ADeermount @RussellLowery10 This is unlike multifamily lets say where spaces are more homogeneous & cookie cutter. There are preset configurations. Different unit mixes for bedrooms & bathrooms but thats it. Pretty much plug & play for new tenants. Just come in & rent units as-is. No customization"
X Link 2023-07-16T15:06Z [----] followers, [--] engagements
"@TheWolfofREI Great example of time value of money (TVM) as it relates to rent bumps. Rather than 2% every year for [--] years (compounds) get bumps sooner etc. Versus one 10% rent bump in [--] years. Use a discount rate to NPV the value. Thanks @TheWolfofREI"
X Link 2023-07-18T21:13Z [----] followers, [---] engagements
"Cap rate is static & doesnt factor in NOI growth which leads to a higher terminal value. Thread continues 🧵 1/"
X Link 2023-07-23T02:17Z [----] followers, 23.8K engagements
"IRR considers both operating & reversion cash flows; discounts CFs via time value of money (TVM); $ now $ later. 2/"
X Link 2023-07-23T02:18Z [----] followers, [----] engagements
"@3NDeveloper @RetaiLord @CaseyMericle Ultimately we want to sell as close to gross asset value (GAV) or higher. Otherwise were not sellers. Weve ended up recapping instead etc. Or you can do some more lease-up or improvements & then sell later"
X Link 2023-07-23T03:24Z [----] followers, [--] engagements
"@3NDeveloper @RetaiLord @CaseyMericle You do need to do hold-sell analysis though. Put in x $s in additional capex (to lease up / improve prop) & hold off Or is the juice not worth the squeeze & should we sell now In the meantime IRR is deteriorating via time value of money (TVM)"
X Link 2023-07-23T03:26Z [----] followers, [--] engagements
"@ShlomoChopp @moseskagan For value-add deals we use variable-rate debt & interest only (IO) at least for initial term. Might consider fixed-rate debt for core-plus deals if it makes sense though. Debt isnt a one-size fits all kind of thing; depends on deal. Use leverage & use it wisely"
X Link 2023-07-23T04:16Z [----] followers, [---] engagements
"@ShlomoChopp @moseskagan Also buying interest rate caps can act as a hedge so your variable interest rate doesnt go out of control"
X Link 2023-07-23T04:16Z [----] followers, [---] engagements
"@financeguy725 Not factoring in time value of money (TVM) as well as opportunity cost to invest money elsewhere etc. Also for CRE unless its an infinite hold ♾ hold periods are less. 3-5 years for value add etc. @aaronk7"
X Link 2023-07-30T16:13Z [----] followers, [----] engagements
"@rohde88 Wonder if building a trash enclosure would help on above Maybe maybe not"
X Link 2023-07-31T06:36Z [----] followers, [---] engagements
"@NersesAposhian Picerne. Newport Beach"
X Link 2023-08-02T05:09Z [----] followers, [--] engagements
"@jchal @Bethazor1 Need to bifurcate the data. Dying class-C malls is old news. Not all retail centers are in a death spiral"
X Link 2023-08-06T00:23Z [----] followers, [---] engagements
"@Snowball_Dev @Rev_Cap Great pt about time value of money (TVM) reducing Yr [--] residual value on a PV basis which impacts UIRR"
X Link 2023-08-06T16:04Z [----] followers, [--] engagements
"We're targeting most "hot spot" markets (TX west) below for value-add multi-tenant light industrial. Insightful graphic. Follow the migrationneed logistics to support migration"
X Link 2023-08-07T14:16Z [----] followers, 20.3K engagements
"@3NDeveloper Wonder if lenders appraisers etc discount cash flow from WeWork locations. Cash flow may not be as durable as other tenants. WeWork could blow out anytime. When I worked in asset mgmt a WeWork closed but we had a letter of credit. Used payout to improve prop"
X Link 2023-08-10T14:11Z [----] followers, [----] engagements
"@realEstateTrent IRR clock is ticking tootime value of money (TVM). Add the value & exit to maximize return"
X Link 2023-08-10T15:47Z [----] followers, [---] engagements
"For certain analyses my boss sometimes says I dont need you to be gnats ass (tick-in-tie to the smallest detail) for accuracy. Just need the drivers that move the needle along w/ explanations. For the rest they could be categorized as an other line item"
X Link 2023-08-11T19:57Z [----] followers, [----] engagements
"Interesting that private debt lenders underwrite 15-20% IRR downside if they have to foreclose. Pick up asset at low basis but like w/ any value-add deal it would take work to reposition & release. Base case is 9-12% for lender w/ return based on interest rate on loan amount"
X Link 2023-08-12T17:18Z [----] followers, [--] engagements
"Yikes. The Department of Justice is investigating Nightingale Properties after the New York-based real estate investor allegedly diverted nearly $40M of equity raised on real estate crowdfunding platform CrowdStreet into accounts controlled by its CEO"
X Link 2023-08-12T18:04Z [----] followers, [----] engagements
"Question to askis the highest priced buyer real Have real equity behind them Or just fishing for deals That said highest priced buyer isnt always most qualified. Deal may blow out later if seller takes this buyers offer. Then seller comes back to backup buyers"
X Link 2023-08-13T13:58Z [----] followers, [----] engagements
"@CRE_Investing Unforeseen capex / DD issues is one thing but other than that sellers dont like unreasonable retrades. Thats happening now for a deal & we have another bite at the apple as a backup buyer"
X Link 2023-08-13T16:37Z [----] followers, [---] engagements
"@CRE_Investing Go pt. above regarding interest rates rising as reason for potential retrade. We had a deal tied up for a while. Interest rates went up. Seller was willing to do carry back which helped offset loses via higher int. rates"
X Link 2023-08-13T22:04Z [----] followers, [--] engagements
"Thanks all for helping me get to 6k followers. Hopefully adding some value to your feed. 4k more to get to 10k. Not sure I can get there by year-end (goal) but Ill do my best & see what happens"
X Link 2023-08-16T01:22Z [----] followers, [----] engagements
"For value-add deals w/ 3-5 yr holds you'll likely be using a spread over SOFR for debt. US Treasuries is a proxy for this. A metric to evaluate is market exit cap over SOFR when selling. Rates now projected to end up higher at end of [--] [--] & [--] yrs"steeper". Thx @JamesEagle17"
X Link 2023-08-18T14:27Z [----] followers, [----] engagements
"Kinda funny. Just talked to a broker about a lease comp. Knows me from LinkedIn. Youre guy who puts out all that content right He continued I love that sh**. Very cool. Small world"
X Link 2023-08-18T21:11Z [----] followers, [----] engagements
"Let the message sink in a bit & then formulate a poised response. So easy to rush & fire off responses that arent well thought through. Thread continues 🧵 1/ Credit: @jt_ryder"
X Link 2023-08-19T17:39Z [----] followers, [----] engagements
"@ZeroBasis Throughfare map for new roads coming in etc. is pretty cool for path of development. Havent really noticed those before. Not sure every muni has them or maybe Ive never looked for them. Thx @ZeroBasis for sharing the cool video on how to look for land for development"
X Link 2023-08-21T06:25Z [----] followers, [---] engagements
"@JulieChangRE Leaves & some branches laying on street due to wind/rain where I live. Were not used to getting dumped on in SoCal w/ rain like this. Could be a lot worse. Rain (light) & wind is dying down"
X Link 2023-08-21T06:42Z [----] followers, [---] engagements
"Health ratio or rent-to-sales ratio for retail tenantstotal rent (incl. NNN reimbursements) / total tenant sales to assess strength of tenants financial health relative to rent. Health ratio ranges: Grocery: 1%-5% Restaurants: 6-10% Fitness: 15%-25% Apparel: 10-15%"
X Link 2023-08-23T13:05Z [----] followers, [----] engagements
"@michaelwatson2 Sandwiches burgers tasty wings yummy desserts etc. Impressive food portfolio assembled & described above"
X Link 2023-08-24T22:55Z [----] followers, [---] engagements
"@TiltWall Great post above. Below is more color on the Prologis clear lease as well as reimbursement structures for other asset classes explained throughout the thread"
X Link 2023-08-26T17:42Z [----] followers, [---] engagements
"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. Lets do a deep drive on ground leases. Thread continues 🧵 1/"
X Link 2023-08-26T18:56Z [----] followers, 23.3K engagements
"In [--] yrs or so theyll may end up demolishing the bldg anyway (outdated concept) & rebuilding here or relocating. Leased fee land owner may take control of the leasehold if its given back. 4/"
X Link 2023-08-26T18:57Z [----] followers, [---] engagements
"Ground lease (leased fee) deals command a lower cap rate where investor owns land (& tenant owns bldg & pays ground rent or a fee). These are true absolute NNN lease deals since you dont worry about roof & structure maintenance etc. 5/"
X Link 2023-08-26T18:58Z [----] followers, [---] engagements
"Keep in mind that after ground lease is up bldg goes to land owner at reversion unless bldg owner renews ground lease. Often times if bldg owner is a retailer/user itll demolish bldg & construct another by then since concept is outdated & useful life is up. 6/"
X Link 2023-08-26T18:59Z [----] followers, [---] engagements
"This is diff than a ground lease (leasehold) positionperspective of tenant who owns its own bldg like a national quick service retail (QSR) chain (think holding on to bldg) but it pays ground rent to land owner. The QSR gets 100% depreciation on bldg (no land). 7/"
X Link 2023-08-26T19:00Z [----] followers, [---] engagements
"@3NDeveloper A lot of collective property value above to potentially be discounted if they become distressed enough for disposition"
X Link 2023-08-27T17:50Z [----] followers, [---] engagements
"@ArtemTepler Great point about the fees as well as having an experienced asset management / development team to successfully execute the business plan"
X Link 2023-08-27T17:52Z [--] followers, [---] engagements
"@TheWolfofREI Great points above from @TheWolfofREI. Building & maintaining models is quantitative. Crafting a compelling story of the deal is qualitative"
X Link 2023-08-31T03:01Z [----] followers, [---] engagements
"@3pillarsrei Large rental mark-to-market Opportunity to streamline expenses So NOI can grow DSCR can go up etc Positive leverage w/in [--] mos Buying an interest rate cap in the meantime"
X Link 2023-09-01T01:33Z [----] followers, [--] engagements
"Stocks are typically more volatile & sensitive to global events compared to commercial real estate investments. That said capital markets conditions e.g. current high interest rate environment can make it tough for some to buy sell cover debt pmt refi"
X Link 2023-09-03T01:51Z [----] followers, [----] engagements
"@jameseklein New normal right now for interest rates. Well see if the Fed can get rates down to the long-run target of 2% within a few years"
X Link 2023-09-03T17:22Z [----] followers, [--] engagements
"@TheRealEstateG6 How much did it cost the buyer above all-in incl. tenant improvement allowance (TIA); leasing commission (LC); base bldg costs if it was a landlord build / build to suit (BTS)"
X Link 2023-09-05T13:27Z [----] followers, [---] engagements
"@JTMartingCRE Firms & roles are bolded in resume #1 above which makes them pop a lot morethats my preference"
X Link 2023-09-06T01:03Z [----] followers, [---] engagements
"That said entire lease term incl. if tenant ended up staying is called soft term; term up to termination option is hard term. 5/"
X Link 2023-09-06T21:21Z [----] followers, [---] engagements
"If a tenant missed their notification period for a termination option theyre stuck for on the hook for the remaining term. 6/"
X Link 2023-09-06T21:21Z [----] followers, [---] engagements
"For underwriting you may want to factor in mainly the hard term up to termination opt. Soft term past termination opt. isnt guaranteed. 7/ @UntrendedYOC @TheDukeofDirt"
X Link 2023-09-06T21:26Z [----] followers, [---] engagements
"@UntrendedYOC @3NDeveloper @Nick_Keesee @TeamHerrold @realEstateTrent @Snowball_Dev @RE_Ari18 @Bethazor1 Below is a refresher thread 🧵 I just put together on termination options / kick-outs; soft term vs hard term etc. For underwriting might want to factor in mainly hard term up to termination opt. Soft term past termination opt. not guaranteed. @NNNIncome @3NDeveloper"
X Link 2023-09-06T21:30Z [----] followers, [---] engagements
"There are often various counterparties involved in deals etc but they may move at a slower pace than youd like so setting up to-dos & following up is essential. 2/"
X Link 2023-09-13T14:50Z [----] followers, [---] engagements
"There are often various counterparties involved in deals etc but they may move at a slower pace than youd like so setting up to-dos & following up is essential. 2/"
X Link 2023-09-18T15:29Z [----] followers, [---] engagements
"For capital raising brokerage etc it can be helpful to utilize a customer relationship management system (CRM) for accountability & systematic follow-up. 3/"
X Link 2023-09-18T15:30Z [----] followers, [---] engagements
"Variable-rate debt vs fixed-rate debt Interest only (I/O) vs amortizing debt Lets dive into this topic a bit more. Thread continues 🧵 1/"
X Link 2023-09-18T20:33Z [----] followers, [----] engagements
"Keep in mind that what goes up must come down (not to recent historic lows of course). SOFR T-bill rates etc will eventually come down. 6/"
X Link 2023-09-18T20:35Z [----] followers, [---] engagements
"@Theacqguy Agree w/ younear-term rollover is definitely a strong value-add lever to consider. Depends on lease terms seller is signing for these recent deals as it relates to wtd avg lease term (WALT). If you cant get to the leases during the hold you cant mark-to-market rents"
X Link 2023-09-22T19:11Z [----] followers, [--] engagements
"@realEstateTrent Hopefully wont have crazy high rates like during the savings & loan (S&L) crisis in the 1980s. Makes the interest rates right now look cheap. Borrowers have gotten spoiled w/ historically low rates. Thx @realEstateTrent. Having some historical context & perspective matters"
X Link 2023-10-02T21:50Z [----] followers, [---] engagements
"Gotta give it up to this Aussie family for not selling out to a residential home developer who built an entire community around them. This goes to show that money cant buy everything. This isnt an eminent domain situation eithercant just take"
X Link 2023-10-06T22:56Z [----] followers, [----] engagements
"Tough for GPs to consistently hit 20%+ gross levered IRR on the property level nowadays in order for LPs to hit mid-teens net levered IRR. Thread continues 🧵 1/"
X Link 2023-10-09T13:37Z [----] followers, [----] engagements
"Deal should have enough juice on its own along w/ some conservative debt in order to pencil. Shouldnt rely on using overly aggressive debt to hit returns. 3/"
X Link 2023-10-09T13:38Z [----] followers, [---] engagements
"Prop-level underwriting assumptions should be realistic. Also the sooner you can get to spaces & execute biz plan the better. Further out is speculative. 4/"
X Link 2023-10-09T13:39Z [----] followers, [---] engagements
"@rohindhar Most single family home buyers acquire for utility (to live in) & often on long-term fixed-rate debt. Bought/refid at low rates. Multifamily buyers acquire for investment. Some bought on floating-rate debt. Got in trouble when rates went up. Tough to refi now. @theredatadude"
X Link 2023-10-10T07:36Z [----] followers, [--] engagements
"@TheDukeofDirt UW cap rate compression at your reversion from a stabilized start cap rate is definitely aggressive underwriting. As mentioned above this goes against what many of us learned in UW e.g. +10bps / yr of hold etc. to acct for obsolescence etc. Most savvy LPs wont go for this"
X Link 2023-10-10T19:48Z [----] followers, [---] engagements
"@PolesMiami @TheDukeofDirt Also Im still seeing industrial development deals still out here in the Western US. I do understand that rents (still high here) & exit cap need to justify construction & land cost"
X Link 2023-10-10T21:10Z [----] followers, [--] engagements
"Capital raisers might be able to structure fees / compensation similar to that of a GP but less the promote etc. Thread continues 🧵 1/"
X Link 2023-10-12T23:17Z [----] followers, [----] engagements
"@chernobelskiy Also if youre tracking what you eat etc. I like Calorie Counter by FatSecret. Free version has bar code scanner. Syncs for resting/ active energy (walking) from Apple Health. Hevy app tracks energy burned via lifting wts & syncs to Apple Health; manually enter in FatSecret"
X Link 2023-10-16T04:26Z [----] followers, [---] engagements
"@WSJ Birkenstocks have been around for a while. Crazy that theyre just now going public"
X Link 2023-10-16T06:35Z [----] followers, [---] engagements
"@realEstateTrent When underwriting a deal its wise to talk to local CRE mkt leasing experts. Not just to understand which tenants are known vacates in the rent roll etc. Also to understand potential backfills & competitive set / lease comps etc. Thx SMG. @KornegayCapital @RepeGent"
X Link 2023-10-16T23:34Z [----] followers, [---] engagements
"@realEstateTrent @KornegayCapital @RepeGent If you have a tight competitive set & lease comps you usually should be able to figure out your own MLAs for each space. Also each shop has its own underwriting philosophydowntime TI package LCs (incl. any overrides) capex scope etc"
X Link 2023-10-16T23:44Z [----] followers, [---] engagements
"@CoyDavidsonCRE Creative way of putting it above. For the 10% of the stockspace nobody would lease ever in any economy this could be considered static vacancy from an underwriting perspective. This could come into play for a covered land play / redevelopment project too. @kenashley"
X Link 2023-10-16T23:59Z [----] followers, [---] engagements
"If you buy at too high of a basis youre fighting an uphill battle from the start. The saying goes you make (or lose) money on the buy. Asset managers arent miracle workers. They can value engineer to a certain extent but likely not to make up for buying too high"
X Link 2023-10-17T19:41Z [----] followers, [----] engagements
"@TheWolfofREI Not uncommon to use floating rate debt for value-add deals. Just make sure to buy an interest rate cap on that floating rate debt. @Theacqguy"
X Link 2023-10-17T19:49Z [----] followers, [---] engagements
"@YOCspread Interesting point above about the dirt being moved as potentially contaminated"
X Link 2023-10-17T19:53Z [----] followers, [---] engagements
"@chernobelskiy Youre referring to IRR partitioningbifurcating operating cash flow vs reversion cash flow. See below for more color on this. @AdventuresinCRE @spencerburtonRE"
X Link 2023-10-18T23:43Z [----] followers, [---] engagements
"@TeddyBeingTeddy @TheRealEstateG6 If seller can make some lease deals to achieve high watermark rents leading up to sale it can help guide buyer in rent assumptions for underwriting"
X Link 2023-10-19T14:45Z [----] followers, [--] engagements
"Keep in mind that if youre dividing by or capping NOI by a smaller fraction or cap rate you can think of it as multiplying by a higher multiple. Lets break this down in a thread. 🧵 1/"
X Link 2023-10-19T15:10Z [----] followers, [----] engagements
"So a 5% cap equates to a 20x multiple to net operating income (NOI). Graph below shows that a lower cap rate yields a higher multiple to NOI. 2/"
X Link 2023-10-19T15:10Z [----] followers, [---] engagements
"@RepeGent @MultifamilyRob Also notice that the Rite Aid pad sits on a desirable hard corner. May be separately parcelized; if so option to sell off in break-apart sale. To an owner-user or an investor who may have backfill tenant-in-tow"
X Link 2023-10-20T07:41Z [----] followers, [--] engagements
"@RepeGent @MultifamilyRob That said this area seems pretty out there w/ all the forrest & open roads. Could be a lot tougher than usual to backfillmore suburban/rural. Hopefully investor considered this downside scenario & has a plan"
X Link 2023-10-20T07:46Z [----] followers, [--] engagements
"@TripleNetInvest Relying on WeWork as your major tenant is kinda dicey. Downside scenario came to fruition in example above. Not a surprise about drop in value. Would need to backfill to get it up. Wonder if landlord get a letter of credit guarantee under parent entity. When I worked in office asset management one of our WeWork locations blew out & WeWork left. However luckily we had a letter of credit (LOC) set up to draw money down from. This was set up from the main parent entity not some shell LLC which made a difference. When I worked in office asset management one of our WeWork"
X Link 2023-10-21T01:57Z [----] followers, [----] engagements
"9 Loans Totaling $299.8M Against Tides Equities-Owned Props Move to Special Servicer Each of the loans was provided by MF1 Capital which funded them through a collateralized loan obligation MF1 Ltd. 2022-FL9 a $1.8B deal that priced only in May 2022"
X Link 2023-10-22T01:56Z [----] followers, 72.1K engagements
"@realEstateTrent On the investment sales brokerage side theres a range in price from go-to-market strike price & floor price. Seller & broker hope to get a price above the strike price close to go-to-market; may not sell at the floor price. Thx @realEstateTrent"
X Link 2023-10-22T17:56Z [----] followers, [---] engagements
"@Theacqguy Youre still going to underwrite to base case upside & downside scenarios for sensitivity testing. If 25% IRR is base case hopefully theres some serious juice & clear path (ideally quickly) to get there. Need to convey this effectively w/ LPstough to find these. @RepeGent"
X Link 2023-10-24T18:18Z [----] followers, [---] engagements
"@PERE_MD @RepeGent @TheRealEstateG6 At a prior shop I worked at we could say our parent company / co-GP could be the backstop & close if needed in the worse case scenario. If you have a fund besides doing JVs w/ single institutional LPs you could leverage that & say it might go to our fund or to a JV"
X Link 2023-10-24T18:47Z [----] followers, [--] engagements
"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/"
X Link 2023-10-24T18:56Z [----] followers, [----] engagements
"If you have a strong enough track record & existing partnerships w/ institutional LPs the chances of securing capital increases & helps instill confidence in your seller. 9/"
X Link 2023-10-24T19:12Z [----] followers, [---] engagements
"Could also have institutional LPs who also GP own deals ideally core & core+ deals they can asset manage. Still considered a REPE shop. On value-add & opportunistic deals they may JV w/ other GPs w/ specialized asset experience &/or local expertise. 10/ @RepeGent @PERE_MD"
X Link 2023-10-24T19:18Z [----] followers, [---] engagements
"@RepeGent @PERE_MD My former boss (in asset mgmt) worked at a large institutional LP shop who also asset manages their own GP core & core+ deals. He had a unique opportunity to take a out-positioned previously core deal & reposition it to become competitive again. He gained dev exp. this way. 11/"
X Link 2023-10-24T19:22Z [----] followers, [---] engagements
"@RepeGent @PERE_MD @theredatadude GPs partner w/ institutional LPs considered real estate private equity (REPE) or syndicate w/ individual LPs (not considered REPE). Some argue that setting up fund w/ smaller LPs still makes it REPE. Does it really matter For clout Committed equity is nice in any case. 16/"
X Link 2023-10-24T19:55Z [----] followers, [---] engagements
"@RepeGent @PERE_MD @theredatadude Programmatic JVs with institutional LPs still count as real estate private equity (REPE) partners in my opinion. There is a strategic relationship to deploy $x of LP institutional capital with the given GP. 17/ @trobertsBS"
X Link 2023-10-24T20:01Z [----] followers, [---] engagements
"Below is a definition / delineation of real estate private equity (REPE) as it relates to funds & respective investor composition. 20/ @ClarenceWongCRE @RepeGent @theredatadude I have worked at one of the largest PE firms in the world and agree that this is the correct delineation. Those who are raising capital in private fund formats with closed-ended structures and accredited institutional LPs are the authentic real estate private equity shops. @ClarenceWongCRE @RepeGent @theredatadude I have worked at one of the largest PE firms in the world and agree that this is the correct delineation."
X Link 2023-10-24T20:23Z [----] followers, [---] engagements
"@chernobelskiy @realEstateTrent @Keith_Wasserman Downside scenario is having to backfill. Make sure you can live with the location. Tertiary areas make it much tougher to backfill space in CRE"
X Link 2023-10-24T22:23Z [----] followers, [---] engagements
"@chernobelskiy @realEstateTrent Downtime & retenanting costs incl. TI/LC will eat into your return / cash flow"
X Link 2023-10-24T22:25Z [----] followers, [---] engagements
"@3NDeveloper Sale leaseback is a way for the owner-user to unlock equity to reinvest in its business; in return it becomes a tenant. Need to ensure that parent company is guarantor per post above. Also this tenant/user may pay over market rent; affects residual value. Thanks @3NDeveloper"
X Link 2023-10-24T22:46Z [----] followers, [---] engagements
"@RepeGent @PERE_MD Chart above explains that a joint venture (JV) only has a single capital partner (LP) which is often times institutional. A syndication involves multiple individual capital partners. Might utilize a capital raiser (syndicator) etc to help raise the equity"
X Link 2023-10-24T23:52Z [----] followers, [--] engagements
"With exception of Real Estate Securities (public REITs etc) & debt below you could be dealing w/ real estate private equity (REPE). These institutional investors/ advisors may invest directly indirectly; via a fund/fund of funds acct JV club etc. 21/ @PERE_MD @RepeGent"
X Link 2023-10-25T00:05Z [----] followers, [----] engagements
"@PERE_MD @RepeGent For equity funds size typically refers to equity capital committed by institutional investors plus GP equity. Leverage typically isnt included. So a $100M equity fund w/ 50% leverage has $200M of purchasing power. Thanks @USAisCRE for sharing definition below from PERE. 22/"
X Link 2023-10-25T00:14Z [----] followers, [---] engagements
"@theredatadude So the higher the prop value &/or AUM the higher the fees. See @realEstateTrents thread below. That said its likely that the GP @NNNIncome spoke w/ today has a decent amount of AUM & fees. 6/"
X Link 2023-10-26T21:17Z [----] followers, [---] engagements
"@theredatadude @realEstateTrent @NNNIncome One way of never giving the money back as @NNNIncomes GP alluded to is doing a [----] exchange. So roll net proceeds into another deal or multiple deals (like kind) to defer taxes. GP would like to be on this [----] exchange deal as well & continue collecting fees. 7/"
X Link 2023-10-26T21:21Z [----] followers, [----] engagements
"@RothCRE Interested. Please DM the PDF overview thanks"
X Link 2023-10-28T19:44Z [----] followers, [----] engagements
"Will we start seeing more small-format 2500-SF drug stores vs traditional 11K-15K SF ones Drug stores will then eventually become end-cap etc shop tenants vs traditional anchors. This will allow drug stores to focus on their core competencyselling prescription (RX) drugs"
X Link 2023-11-01T16:58Z [----] followers, [----] engagements
"Not a surprise that WeWorks shares have dropped so much. Burning through all your investors cash doesnt help. Great additional color below from @UntrendedYOC"
X Link 2023-11-02T19:45Z [----] followers, [----] engagements
"@moseskagan @ArtemTepler @moseskagan & @Keith_Wasserman @ArtemTepler held both of you in high regard during our DM conversation when he started to get active on #Retwit this year. Hell be missed. RIP"
X Link 2023-11-03T03:10Z [----] followers, [----] engagements
"@hussain_nathoo Price per square foot (PSF) or price per pound & yield on cost (YoC) etc are what many buyers are focused on for office esp. if property isnt stabilized w/ credit & cash flow is iffy"
X Link 2023-11-03T15:22Z [----] followers, [---] engagements
"@GellnerDavid Above sounds like negative holdover rent i.e. a 50% reduction. Only 50% of current rent vs typical 125-150% of current rent on holdover. @TripleNetInvest"
X Link 2023-11-04T00:21Z [----] followers, [---] engagements
"Interests should stay aligned not just between GP & LP but also amongst GP principals. If that changes it could make sense to part ways as described in case study below. Thx for sharing @rbradthomas. Had no idea of your backgroundjust knew you were a top REIT analyst"
X Link 2023-11-04T14:33Z [----] followers, [----] engagements
"@jt_ryder Docusign email might have gone into recipients spam folder. You should be able to track if theyve received/opened it. Also have functionality to push out a reminder etc. Sometimes theres a reason why other party is slow playing process. Thx @jt_ryder"
X Link 2023-11-04T18:42Z [----] followers, [---] engagements
"Yield curve disinverted recently. Recession around the corner This has been a leading indicator for prior recessions as seen below. Welcome your thoughts on the topic. Thanks"
X Link 2023-11-04T19:16Z [----] followers, [----] engagements
"@TheoPhysiJ LIHTC does give you some buffer on capex & underwriting w/ government tax credits etc"
X Link 2023-11-04T19:35Z [----] followers, [--] engagements
"Institutional LPs still need lease comps etc to take the deal to their investment committee (IC) even if vacancy is sub 3%. Yes you can backfill spaces but which props do you compete against & whats OpEx space condition TI needed & rent you can hit"
X Link 2023-11-05T16:42Z [----] followers, [----] engagements
"@jandreini1 To clarify is Walgreens exercising a ROFR to purchase & then structuring a sale leaseback (flipping to new buyer who originally helped trigger the ROFR) at a higher rent & new extended lease for a profit @youngmogul4life @KeeganMulcahyRE"
X Link 2023-11-05T19:01Z [----] followers, [----] engagements
"@UntrendedYOC WeWork blew through SoftBank investment money raised via IPO etc. Now filed for BK"
X Link 2023-11-05T20:37Z [----] followers, [---] engagements
"@realEstateTrent Is they call you boss is that acceptable Has chief vibes"
X Link 2023-11-06T16:00Z [----] followers, [---] engagements
"@Keith_Wasserman Dry powder is out there"
X Link 2023-11-06T16:11Z [----] followers, [---] engagements
"If you cant buy you rent. Good for multifamily build-to-rent (BTR) etc. Renting also provides more flexibility & mobility. Although you can rent out a SFR it ties you down financially etc"
X Link 2023-11-06T21:07Z [----] followers, [----] engagements
"@TeamHerrold Developer will need to hold on to the SBUXs that dont sell then. Equity will be tied up in these in the meantime"
X Link 2023-11-06T22:18Z [----] followers, [---] engagements
"Buying a portfolio of [--] vacant big-box stores formerly occupied by Big Lots involves lease-up risk to backfill. Youre taking properties w/ $0 cash flow & creating value. Red Mountain backfilled the majority of these; also sold a vacant store recently to another developer"
X Link 2023-11-07T03:43Z [----] followers, 10.2K engagements
"@AaronAZucker @AaronAZucker is able to put his own tenants into vacant bank bldgs. Pretty cool. Nice to have your own tenant in your back pocket to use. Its like a built-in tenant in tow / prelease. @johnmckeeDC @Bethazor1"
X Link 2023-11-07T20:23Z [----] followers, [---] engagements
"McDonalds Chipotle to hike menu prices after CA Gov. Newsom approves $20 fast food min wage Chipotlelikely prices in CA by "mid-to-high single-digit" %. McDwill explore ways to improve productivity & reduce restaurant-level exp + prices. https://tinyurl.com/4xd98zap https://tinyurl.com/4xd98zap"
X Link 2023-11-08T02:06Z [----] followers, [---] engagements
"Interesting questions posed below. Lets take a deeper dive into this. Welcome to hear your thoughts as well. Thread continues 🧵 1/"
X Link 2023-11-08T19:23Z [----] followers, [----] engagements
"If you have expertise to entitle & have time since carry costs are involved you could do the work to add value. 4/"
X Link 2023-11-08T19:24Z [----] followers, [--] engagements
"If you were developer besides apartments & townhomes build-to-rent (BTR) could be interesting. 5/"
X Link 2023-11-08T19:24Z [----] followers, [--] engagements
"Latter gives provides a single family feel which is great for retirees &/or families. Maybe do a mix of MF & BTR. 6/"
X Link 2023-11-08T19:25Z [----] followers, [---] engagements
"@CoyDavidsonCRE @CarolWalshReal1 @kenashley @X I do enjoy participating & engaging on @X for CRE. I genuinely enjoy it so Im glad to do it consistently"
X Link 2023-11-09T06:01Z [----] followers, [---] engagements
"Interesting that Costco a prior adjacent shadow anchor has opted to become a landlord & buy out adjacent center w/ various box & junior box tenants below from special servicer LNR. Dont see this often"
X Link 2023-11-09T14:35Z [----] followers, [----] engagements
"@JohnPlatner @yunowudds @Costco real estate development team hard at work"
X Link 2023-11-09T15:06Z [----] followers, [--] engagements
"@yunowudds @JohnPlatner see below for my thoughts on Costco anchoring the ground floor above apartments in urban environments. Thanks for commenting"
X Link 2023-11-09T15:19Z [----] followers, [---] engagements
"@DFWJoeAskew @Tehan55 Makes sense. Anchors & jr anchors help drive foot traffic to the center anyways. Pads if there are some will block visibility here & there. Landlord will structure REA accordingly. If smaller credit tenants want some visibility they could negotiate to be on pylon sign etc"
X Link 2023-11-10T03:09Z [----] followers, [--] engagements
"@actionmike_ See article below. Spread varies based on asset class fixed vs floating rate debt risk profile lender etc. Not a science. For floating rate-bridge debt its typically a spread over SOFR. For fixed rate its a spread over x-yr Treasury; x=maturity"
X Link 2023-11-11T21:43Z [----] followers, [--] engagements
"Lender spread varies based on asset class fixed vs floating rate debt LTV/LTC risk profile lender etc. Not a science. For floating rate-bridge debt usually its spread over SOFR. For fixed rate its can be spread over x-yr Treasury; x=maturity"
X Link 2023-11-11T21:48Z [----] followers, [----] engagements
"@realEstateTrent Need to factor in time value of money (TVM) for example above. $5M value is x years $5M today. Use a discount rate on the $5M reversion value in x years to get a net present value (NPV). Thanks @realEstateTrent"
X Link 2023-11-14T16:27Z [----] followers, [---] engagements
"Need to factor in time value of money (TVM) for ex. below. $5M value in x years $5M today. Use discount rate on $5M exit value (& operating CF) for x yrs to get net present value (NPV). Like asking me to pay same proforma value (after value created) now as purchase price. I don't know who needs to hear this but if a property is going to be worth $5M after I spend years adding a bunch of value you're weird for asking $5M now I don't know who needs to hear this but if a property is going to be worth $5M after I spend years adding a bunch of value you're weird for asking $5M now"
X Link 2023-11-14T16:37Z [----] followers, [----] engagements
"@NNNIncome @ChipotleTweets Chipotle will be hungry for your next deal. Agree with your decision to go w/ the regional tenant. Burning that bridge & going back on your word wouldnt be the best. Great case study. Thanks for sharing @NNNIncome. UPDATE: Our team evaluated this for a day and all decided unanimously we had a deal struck with the regional and that was the best path forward for the property / ownership group. What a good problem to be debating by the way. Drive thrus remain red hot in the retail sector. UPDATE: Our team evaluated this for a day and all decided unanimously we had a"
X Link 2023-11-16T16:03Z [----] followers, [---] engagements
"REIT M&A is about size & scale & synergiesincl. buying smaller firms (& properties) at sizable discount to net asset value (NAV). Great takeaways from the podcast below. Thread 🧵 continues 1/"
X Link 2023-11-17T22:46Z [----] followers, [----] engagements
"Leverage increased by 75-85% to 95% on Fannie Mae loans for 2-4 unit multifamily allowing real estate investors to more easily start their house hack i.e. live in a unit & lease out rest"
X Link 2023-11-18T20:12Z [----] followers, 23.8K engagements
"@TheCashFlow_Guy Are rental payments (lets assume net cash flow before debt service) also enough to cover principal payments assuming loan is amortizing If not youre still underwater"
X Link 2023-11-18T21:35Z [----] followers, [--] engagements
"Heavy hitters like @realEstateTrent @BobKnakal @sweatystartup have embraced @LinkedIn. Many knock on @LinkedIn but its still one of my favorite social media platforms. So Im proud to be a @LinkedIn Top CRE Voice. Also committed to @X for the long haullove CREX / Retwit"
X Link 2023-11-20T00:25Z [----] followers, [--] engagements
"@JTMartingCRE Good to identify active CRE buyers (new debt) & existing owners (refi / restructure). @CoStarGroup @MSCI_Inc (formerly Real Capital Analytics aka RCA) are good sources for buyers/sellers. Could also leverage @TreppWire along w/ CoStar & RCA to help find distressed borrowers"
X Link 2023-11-20T01:05Z [----] followers, [---] engagements
"@JTMartingCRE @CoStarGroup @MSCI_Inc @TreppWire You want to find the active buyers & be part of conversation for consideration on new debt. Ive listed some providers above where you can track down these potential borrowers"
X Link 2023-11-20T01:08Z [----] followers, [---] engagements
"@JTMartingCRE @CoStarGroup @MSCI_Inc @TreppWire Also learn appropriate lenders for permanent debt bridge debt etc. Youre a broker & will play matchmaker to lender/borrower"
X Link 2023-11-20T01:10Z [----] followers, [--] engagements
"@Jeffdthompson Very cool. Below is my Twitter Circle"
X Link 2023-11-20T01:21Z [----] followers, [---] engagements
"@tyleralley24 Break-up sales are a good way to lower your basis for a deal during the hold. Never heard of doing a break-up sale while simultaneously initially closing on the entire multi-parcel side. Great ex. above. Then spinning off another during hold & finally developing last parcel"
X Link 2023-11-20T01:33Z [----] followers, [---] engagements
"@sweatystartup Mentor can ask you questions to help get you thinking deeper about the situation so you can figure out what you really want to do & next steps. Your mentor isnt you. Trying to get your mentor to tell you what they would do isnt necessarily whats best for you"
X Link 2023-11-20T07:47Z [----] followers, [---] engagements
"@heIpfullandlord Often times investors re-invest net proceeds from capital event e.g. refi or sale (could be a [----] exchange) back into real estate. So yes equity is often locked up in real estate. Net cash flow after debt service is nice but often times most of value is in reversion/exit"
X Link 2023-11-20T08:30Z [----] followers, [---] engagements
"@maxfisherRE Try to solve to next buyers return for property value above"
X Link 2023-11-20T09:31Z [----] followers, [---] engagements
"@PERE_MD So an under supply of CRE opportunities for dry powder. Only $180Bn of opportunities for $257Bn of dry powder. At least $77Bn will continue to sit on the sidelines"
X Link 2023-11-20T17:03Z [----] followers, [---] engagements
"@AvivaRealEstate So how did you negotiate the broker above to back down & split the 4% 50/50 vs 1% to you & 3% to him"
X Link 2023-11-20T23:07Z [----] followers, [---] engagements
"@RepeGent @moseskagan Yes acquisitions teams need to keep buying & asset management teams need enough assets to AM w/ enough AM fees to help keep the lights on"
X Link 2023-11-21T18:25Z [--] followers, [--] engagements
"Some interesting points below on high net worth (HNW) investors or family offices. Ill share my experience having interned for one to tie in my perspective. Thread 🧵 continued below"
X Link 2023-11-21T18:48Z [----] followers, [----] engagements
"Some family offices also like to do [----] exchanges on all if not most of their deals. I interned for one & that was a modus operandi (MO). 1/"
X Link 2023-11-21T18:48Z [----] followers, [---] engagements
"This is in contrast to holding all assets indefinitely ♾. Instead hold any given upleg for unforeseen future until deal is ready to harvest to max value. 2/"
X Link 2023-11-21T18:49Z [----] followers, [---] engagements
"As mentioned above theres not necessarily a hold period shot clock although regular hold-&-sell analyses were common to help reevaluate. 3/"
X Link 2023-11-21T18:50Z [----] followers, [---] engagements
"As for leverage family office I interned used leverage but its not to say that others might not do all-cash deals sometimes (heard this). 4/"
X Link 2023-11-21T18:52Z [----] followers, [---] engagements
"As for CRE staff most came from outside from real estate private equity (REPE) etc to help bring that type of experience in-house. 5/"
X Link 2023-11-21T18:54Z [----] followers, [---] engagements
"@JTMartingCRE Cool to be part of your inner circle @JTMartingCRE"
X Link 2023-11-21T18:56Z [----] followers, [--] engagements
"@maxfisherRE Interesting anecdote above on more crime committed & homeless for industrial properties near residential. Would be great if some PhD did some research & wrote up a white paper on this"
X Link 2023-11-21T19:00Z [----] followers, [---] engagements
"@jandreini1 Parcelization for a break-up strategy & having excess land zoned for QSR etc to develop w/ optionality to also spin off can great value & lower basis. Thanks @jandreini1 for sharing the post along w/ the case study. Congrats on the deal"
X Link 2023-11-21T19:15Z [----] followers, [----] engagements
"@shawngorham Sorry to hear. Which place did you come in You can hang around the hoop in case current buyer blows out"
X Link 2023-11-21T19:21Z [----] followers, [---] engagements
"@tyleralley24 Dont need to herd the subcontractor cats right now it sounds like above. Things are tightertheyre hungry & ready to work on existing deals. Makes it easier when they show up"
X Link 2023-11-21T19:24Z [----] followers, [--] engagements
"@shawngorham Within striking distance. Nice"
X Link 2023-11-21T19:25Z [--] followers, [---] engagements
"@Bethazor1 Not uncommon to also include the NNNs in addition to the bldg rent to give you an all-in rent for the Health Ratio calculation above. Thanks @Bethazor1"
X Link 2023-11-21T19:28Z [----] followers, [---] engagements
"A managing intern managing [--] other interns is pretty wild. The blind the leading the blind & just for a 3-month stint too. 🤣"
X Link 2023-11-21T22:51Z [----] followers, 18.7K engagements
"@rhunterh @RepeGent Thats a step up from Managing Intern"
X Link 2023-11-21T22:52Z [----] followers, [--] engagements
"@PaulMLeu Interesting to compare perspectives on the same topic. Glad this thread is helpful @PaulMLeu"
X Link 2023-11-21T22:56Z [----] followers, [--] engagements
"@ADeermount What about slapping every designation etc you can behind your name For ex. CPM is higher than ACoM so latter is unnecessary; also if youre in CRE can prob drop RPA. @chernobelskiy @acquisizioni"
X Link 2023-11-21T23:05Z [----] followers, [---] engagements
"@cap_rate_prince Yup the king of interns 👑 above"
X Link 2023-11-21T23:07Z [----] followers, [---] engagements
"@chernobelskiy Gotta give it to the person above for being creative on the resume / LinkedIn. 🤣"
X Link 2023-11-21T23:09Z [----] followers, [---] engagements
"@ChadGriffiths Love the PowerPoint type slide show vibelive drawing of the parcel boundary from an oblique aerial video"
X Link 2023-11-21T23:14Z [----] followers, [---] engagements
"@vmatthewt @realEstateTrent For CRE 100% owner-user sales you arent pitching the property for income but for the utility so some similarities in that regard"
X Link 2023-11-21T23:23Z [----] followers, [--] engagements
"@ShlomoChopp Definitely here for the CREX / Retwit community not to hero worship. Can relate to many others on here so its fun & an outlet. There are also so many others to learn from. Experts in diff disciplines. Lucky to have this great CRE community on @X"
X Link 2023-11-21T23:28Z [----] followers, [---] engagements
"@mjznyc Yeh in all seriousness this could have been made up for all we know. Someone shared it & it just made me crack up so I wanted to share it"
X Link 2023-11-22T00:51Z [----] followers, [--] engagements
"@ChadGriffiths @jasoncoxnc @khzny Sounded like @khzny would have been a good follow. He was on @fortworthchris podcast before too. Thx & love your new Not A Media Account name @jasoncoxnc"
X Link 2023-11-22T01:04Z [----] followers, [---] engagements
"@realestatejayz Yeh I thought a bigger account followed me the other day & got excited but found out it was also a fake account"
X Link 2023-11-22T01:16Z [----] followers, [--] engagements
"@acquisizioni Mobile ad that will ride via bike your advertisement all around town. Perfect for crowded streets where its congested with cars"
X Link 2023-11-22T01:23Z [----] followers, [--] engagements
"@maxfisherRE Nice prior owner was not leasing out the fenced yard separately Where they just throwing in fenced yard for free to last tenant etc"
X Link 2023-11-22T01:29Z [----] followers, [---] engagements
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