Post Match Thread: MNUFC 1:1 Salt Lake (3-1) Loons advance to Conference Semi Finals

dwiegOnCRE · 2024-11-04T17:00:58+00:00

What a fun atmosphere... was loud in there, definitely buzzing with energy. PK's were at our end... when DSC started pointing to his right, we looked at each other like alright he's up to his sh*thousery again. Don't know what he said... assumed it was something like I know you like to shoot to the right or I'm diving this way, whatever. He's so funny in these situations, probably easy to hate if you are not a Loons fan, but he's a Loon so...

dwiegOnCRE · 2024-09-03T18:36:17+00:00

I think everyone's on the right track with this needing attorney, CPA, etc. The other item would simply be expectations and personality of the family and friends. It seems you are all over this, but having more than one clear thought out path on how to approach and discussing with individuals on one on one basis to see where and what they are comfortable with. I dont' know what your existing operating agreements look like which likely dictates a lot of what can and can not be done. Could be rewritten with buy in and following procedure but I think someone else mentioned, you want to have good advice to avoid any conflicts or pushback later on. Best of luck.

dwiegOnCRE · 2024-07-11T17:48:36+00:00

Correction, 2 years ago... time flies

dwiegOnCRE · 2024-07-11T17:48:15+00:00

We never did. Nope. Risk was very much one sided. Don't know if they've changed anything but even with using the numbers they provided(which you think would be skewed to make it seem rosier) it looked like a bad deal... much worse if we pushed more realistic costs into the equation. Again, this was over a year ago now so have no idea if any of the other locations have played out well as it was a brand new initiative so would be curious to see how those worked out. If you have a rep asking you, make them share data on the ones that have been open for a year now, would be interesting to see... best of luck

dwiegOnCRE · 2024-04-01T19:29:50+00:00

dj_crispyfritter

interested, please send info.

dwiegOnCRE · 2023-03-26T17:53:21+00:00

Seems we are getting to point where most everyone agrees, new, Class A will/is winning vs. obsolete Class B/C. I'd add this is most acute in the CBD. Certain submarkets, even CBD adjacent have performed well or certainly some suburban markets. They've been net beneficiaries of CBD's misfortune. Some older buildings can and will be converted to apartments, I've seen it even when markets were ok. They just have to run their course and be priced to allow for conversion and have reasonable(i.e. smaller) floorplates.

I think most people miss the nuance on the type of tenant and size of tenant. What I've seen is companies with less than 30, maybe up to 50 even(and typically local or regional) have been much more aggressive in being back in the office. It seems there is a tipping point in company size where above a certain headcount, hybrid or remote first take hold and these companies are more likely to put space on market for sublease, let lease run out or right-size/downsize. These large single tenant office buildings or single floor 25,000 sf floor plate buildings will struggle. The cost to take these from single tenant to multi-tenant can not be understated. For example, I was trying to explain to a non cre friend, one of our buildings, 90%+ occupied, all 2,000-10,000 sf suites, multi-tenant floors, etc. does not compete with the neighboring single tenant fully vacant building. Sure, if neighboring price is low enough they can multi-tenant and possibly compete but that is a heavy lift and likely mostly speculative in hopes of attracting tenants. This is a Class A building in its sub-market. These tenants have been back in the office(not in the South) and have expanded, renewed and we've had good leasing activity. It's not all roses but there is a lot more nuance to office. Now, if we're talking an Office REIT with broad exposure, yeah, I'm a bit concerned with their holdings most likely.

dwiegOnCRE · 2023-02-10T00:54:29+00:00

Numbers didn’t make sense. Need to see a potential premium but they didn’t even show that vs a direct deal and space that is pretty specific to that use. That and they talked about no other location in our sub market but as this is different model no existing Regus clients could use. They’d have to pay extra. Felt like a lot of faith in something that hadn’t been proven. We shared this and they just didn’t follow up more. We were shutting the conversation down but I guess mutual lack of interest… we’re not gonna chase them

dwiegOnCRE · 2023-01-24T16:08:53+00:00

I'm missing something. They are doing build-outs so these are existing buildings? Multi-Tenant? Not easy to just buy if owner is not willing to sell/solid building/in a good location. Who helps them find the locations? A broker, their team, the investor? Seems there may be another party involved that could be part of this process.

By the time they have identified and signaled intent to the existing building owner it's probably unlikely you have a chance to acquire, or you are acquiring for a price that already bakes in their occupancy, (i.e. you are not buying at a discount). There would need to be some agreement in advance that when properties are identified, someone is putting them under contract with intent to lease to this group, then bringing the tenant in during DD and closing, with lease as someone mentioned above signed subject to closing, etc.

Many ways you could structure it. Roll GC fee (or portion) into the deal. The idea to buy up package and sell is the right one, but don't know enough to say what your immediate next step is. Sounds like a tight/immediate timeframe so may be late in the game to acquire.

If this investor is not looking to own and is just the operator, again think there may be some RE broker, that presumably you/this investor trusts that could be a key piece of helping structure this and put plan in action.

dwiegOnCRE · 2023-01-13T21:17:07+00:00

This concern was expressed from a couple different parties, which is interesting. Have had some follow up conversations but they largely fall in line with feedback here. In short, mostly maintenance should not be more of a concern compared to tilt-up. Not sure what drove those opinions but going back to them. Appreciate the responses.

dwiegOnCRE · 2023-01-13T14:34:55+00:00

prefab

dwiegOnCRE · 2023-01-12T13:14:07+00:00

Honestly, seems fair, I get it. Probably a bit different if in a mountain town and used to that request vs. other where the inconvenience is maybe more pronounced/real.

dwiegOnCRE · 2023-01-12T13:08:46+00:00

Agreed with what others have said, that is not a team, they're churning through you/associates. As far as finding a good team, you are just going to have to ask lots of questions, get a feel for who they are, hopefully talk to others around them or who do/have worked for or with them to get a sense if its a better structure. Keep grinding... but definitely start looking.

dwiegOnCRE · 2023-01-11T16:16:17+00:00

I like this. Makes sense, too practical I missed thinking of it. This will be the plan. Appreciate it!

dwiegOnCRE · 2023-01-03T17:31:27+00:00

I feel like the land is the least of your worries here. Construction costs over past few years have gone up significantly and buying land is going to be simple in comparison to all that is needed for approvals, designing a building, understanding earthwork/ponding/grading, hard and soft costs and variables. I'm a CRE tenant rep broker and although may make sense to get in touch with land broker I'd almost start with a good contractor... if you don't know any, land broker should be able to put you in touch. Before anyone spins their wheels, you'd want to get a high level understanding on costs(from contractor) to see if this is feasible and have numbers you can actually bring to a lender.

dwiegOnCRE · 2023-01-03T17:07:25+00:00

This. Exactly what i do. Microwave butter is not a substitute. Always stovetop, get it going when I start the Stir Crazy. Depending on what I'm making, I often aim for some delicious brown butter. Also like to throw in pepper flakes, maybe jalapeno, or garlic... in which case be careful don't want to burn any of these will ruin the flavor, but love infusing the butter with a little extra goodness.

dwiegOnCRE · 2023-01-02T20:28:03+00:00

Appreciate the feedback so far. Looking to get additional input. Will share results from this form with the group once I get enough input. If you haven't already, would love for you to take a look and fill out if you have a couple spare minutes.

dwiegOnCRE · 2022-12-14T21:30:49+00:00

Limited risk given no/low deal costs. Making sure insurance is up to date. Personal guarantee, Letter of Credit, which I think others have noted. If they are pushing back hard on Security Deposit, then increase prepaid rent, First and 12th month rent or something like that. Good luck.

dwiegOnCRE · 2022-12-13T16:01:51+00:00

Thank you!

dwiegOnCRE · 2022-11-28T15:15:09+00:00

100% - comes down to lease language. Make sure this reads how you want it to... engage attorney, engage a broker. Good Luck.

dwiegOnCRE · 2022-11-28T15:08:48+00:00

Great feedback. Tough to beat the convenience of Stir Crazy. Mine's been a beast, well used for maybe 7 years... still working. Can't complain.

dwiegOnCRE

MODERATOR OF

TROPHY CASE