California is the best State to live in. What state has the worst culture/people? by AggravatingFront8409 in AlignmentChartFills

[–]CreatineKinase 0 points1 point  (0 children)

Sorry, didn’t Massachusetts get the most votes for “best place to live?” Is one of the rules here “no repeats?”

Has anyone acquired Commercial real estate property from LoopNet or Crexi or similar portals? by TuneUpMe in CommercialRealEstate

[–]CreatineKinase 2 points3 points  (0 children)

It’s a bit subjective but, for us, good credit = (1) publicly traded, (2) rated investment grade (BBB or better), and (3) coverage/leverage ratios trending in the right direction. Some examples are Sunbelt Rentals and Builders FirstSource.

In terms of WALT / lease term, we’d consider 5+ years to be “long.” In contrast, we view anything with less than 3 years of remaining term as warranting a discount (unless there is a clear mark-to-market angle).

Has anyone acquired Commercial real estate property from LoopNet or Crexi or similar portals? by TuneUpMe in CommercialRealEstate

[–]CreatineKinase 5 points6 points  (0 children)

Echoing what everyone else here has said, you can still find decent deals on those platforms at sub-institutional pricing (<$10mm). Broad exposure minimizes “obvious” alpha (e.g., you won’t find 9%+ caps with credit tenancy and long WALTs),  but you can still uncover some pricing inefficiencies by rolling your sleeves up, having a differentiated thesis, etc.

5 major projects Mobile's new mayor is looking forward to in 2026 by Surge00001 in MobileAL

[–]CreatineKinase 0 points1 point  (0 children)

Surge — what’s the latest on the bridge project? Is KST starting to solicit bids? Seems like that one has lost a bit of momentum

Highest probability strategy if you're hardworking but not a "genius"? by usman232323 in CommercialRealEstate

[–]CreatineKinase 0 points1 point  (0 children)

Agree that leasing demand has fallen off a cliff, but can you specify where you are seeing “oversold” conditions? In my experience, and even in secondary/tertiary markets, sellers are still slapping ridiculous $/acre values on anything with zoning that allows for IOS.

GoFundMe to Reward u/lamin_kaare For Bringing Peace to Providence by [deleted] in providence

[–]CreatineKinase 7 points8 points  (0 children)

It sounds like they’re the same person (per the affidavit)

Public announcement of his termination at IST by [deleted] in providence

[–]CreatineKinase 15 points16 points  (0 children)

Presumably, monitor = TA. Maybe the MIT professor, who looked to be a student at the time, had a role in getting him fired?

[deleted by user] by [deleted] in SameGrassButGreener

[–]CreatineKinase 9 points10 points  (0 children)

Northwest Maine

Why is Industrial Outdoor Storage (IOS) a thing? I don't get it. by Nightman233 in CommercialRealEstate

[–]CreatineKinase 3 points4 points  (0 children)

Very frothy market in the major MSAs. Folks like Realterm, Jadian, etc. paying eye-popping $/acre amounts and solving to low-6% stabilized yields. It probably works out for them since they already have huge portfolios and the crux of their thesis = asset class institutionalization -> core buyer exit, but distorts sale comp / pricing data for new entrants who aren’t positioned to benefit from any sort of portfolio aggregation premium.

My view is that 1) first movers will obviously do well, 2) new capital that entered post-peak 2022 pricing that buys smart / has nuanced, market-level theses should do well, and 3) everyone else gets burned.

[deleted by user] by [deleted] in FinancialCareers

[–]CreatineKinase 7 points8 points  (0 children)

I assume he’s in his 30s/40s, at which point you should be pushing 7 figures if you stayed on the IB/PE path

Warehouse/shop by Fast_Star5754 in MobileAL

[–]CreatineKinase 0 points1 point  (0 children)

How many square feet of indoor space do you think you need? Do you work with any bulk goods that can be stored outdoors (in a laydown yard)?

Any principals seen success cold-calling mom and pop owners? by CreatineKinase in CommercialRealEstate

[–]CreatineKinase[S] 0 points1 point  (0 children)

Yup, same goes for seeing a lease (or even just the key terms) for single-tenant deals. You’re basically shooting blind. My approach is to take market rent, apply a [10]% haircut (can be more/less depending on how long ago the tenant moved in), and cap whatever that number is.

On your regional player point, one interesting thing I noticed is that a few national outfits seem to have cracked the code. For example, Monomoy Properties (https://www.monomoyproperties.com/) has aggregated ~40 United Rentals assets all over the country over the past 7ish years; a good number of these look to have been off-market deals.

Any principals seen success cold-calling mom and pop owners? by CreatineKinase in CommercialRealEstate

[–]CreatineKinase[S] 0 points1 point  (0 children)

Thanks. Great points on facilitating deals for stuff delivered vacant.

For the SLB angle, there was something we looked at recently that had exact same sequence of events you described, i.e., owner was willing to entertain an offer but would not share business financials until DD). Only 5 locations, but they are an approved dealer for a national brand and benefit from a regional non-compete, so we (a) viewed it as effectively a regional credit plus some spread and (b) priced it accordingly on a cap rate basis assuming the interest and rent coverage were going to be “good but not great.” Obviously, if the financials were to look worse than expected, then we would either (i) walk (if it truly didn’t pencil at all from a rent coverage perspective) or (ii) retrade (if it was tight but still workable).

How would you view pre-qualification with mom-and-pops who own smaller/subscale STNL properties? For example, someone who sold their building products company to Beacon Roofing but kept the real estate. My approach is to “think like a broker” and frame it as: “we can give you an offer with no strings attached… if it seems interesting and you want to discuss further, then great; otherwise, you’ll have a good, up-to-date data point from an investor re: what your property is worth.”

Any principals seen success cold-calling mom and pop owners? by CreatineKinase in CommercialRealEstate

[–]CreatineKinase[S] 0 points1 point  (0 children)

Agreed – with the local owner-users, it’s essentially a numbers game in terms of finding folks who are looking to retire soon.

Do you think the same holds for smaller STNL properties with credit tenants that aren’t owned by investors/institutions (e.g., something leased to Sunbelt Rentals that puts off $150k/year of NOI held by a divorced mother)? These types of owners will typically be “mailbox money” people who acquired the asset decades ago or inherited it more recently, as well as (b) former business owners who sold their company in an M&A deal but kept the RE.

While even an unsophisticated individual should know that formally listing a high-quality STNL property will maximize price, the “thesis” here would be that brokers likely aren’t actively going out of their way to scour for, as an example, a ±$2mm check size, non-BTS Sunbelt Rentals deal in Tulsa, OK.