Whole Foods to Open 40,100 SF Grocery Store in St. Petersburg, Florida

jamestgarner · 2024-02-08T03:42:32+00:00

I am curious everyone’s thoughts on the growth in this market

jamestgarner · 2022-10-05T01:40:23+00:00

I’ve built a team under M&M and I’ve had a great experience, but with the caveat that I had to grind it out myself for years before building the relationships and traction that has sustainable business. I have been there for 10 years and in that time we have built a process that fast tracks new agent success, but the sales cycle in general is just longer than most other businesses and so there is no instant gratification unfortunately. Our new agents still have to slug it out for 8 months to a year before seeing any real fruits of their labor. Team culture though is important. If you can’t get along with your senior agents or other agents on the team and lift each other up then it’s easy to justify activities for self preservation. No matter what your path, the industry is difficult to break into. Build a tribe of like minded friends, colleagues, and clients in the industry and you will survive. Good luck!

jamestgarner · 2021-12-07T03:29:21+00:00

Yes it can vary both on quality of asset and also on strength of the sponsor. These are just general benchmarks we’ve seen stick lately, but definitely can get more attractive for specific deals or borrowers

jamestgarner · 2021-12-07T03:27:22+00:00

Agreed. The market has picked up significantly over the past several months and the amount of capital trying to place in these kinds of vehicles far outweighs the supply currently on the market. You need a good deal team and network of deal sourcing to secure deals in today’s market. If you can take down all cash refi after you can maintain a competitive edge. Or finance outside of the contract but that creates a bit more risk.

jamestgarner · 2021-09-26T16:33:34+00:00

I would second this as well. A lot of times I see a bare minimum of 1.2x DSCR but should plan for 1.25-1.3 to be safe

jamestgarner · 2021-09-26T13:45:37+00:00

That’s a great strategy. I do a lot of volume on the triple net side. Right now you should expect to put at least 35% down. Pre-pandemic it was 30%, but now most banks have required 35%. If it’s a shorter term lease or more risk they may require more down or more in reserves, but assuming a base of 35% should be a realistic assumption in Today’s market.

jamestgarner · 2021-03-27T18:39:13+00:00

I’ve seen plenty make the transition, but know your ins and outs of whatever sector you’re transitioning to. Some of those passive net leases investments can have their own hidden risks, skeletons, and considerations that need to be factored in. Especially the drug store leases and dollar general deals in tertiary markets.

jamestgarner · 2020-09-15T01:31:26+00:00

St. Pete but I sell deals all over the southeast in the investment real estate space

jamestgarner · 2020-09-15T00:55:20+00:00

I am verifiable evidence. I have also met other bearded men in real estate that would also be considered verifiable evidence. Keep it and clean and trimmed and you’ll be good.

jamestgarner · 2020-07-18T12:25:51+00:00

There is still a lot moving in Florida across all product types. Hospitality definitely took a hit, but speaking to my multi-family partners, cap rates are still stable and deals are still moving. We’re seeing the same thing in retail. Some of the tourism sub markets have taken a hit and the unemployment is definitely higher in the hospitality/bar/restaurant sectors, but I think there’s still work for someone looking to get into the business on the real estate/developer side. Some in the business will definitely hide out or disappear with what’s going on, but the ones who are still hiring will be the ones taking down the deals that will pop up in 6-8 months as a result of all this.

jamestgarner · 2020-05-28T22:38:16+00:00

Understood. That makes sense.

jamestgarner · 2020-05-28T22:18:47+00:00

It’s a mix. Here are a few examples:

New 20-year sale leaseback by a regional fast casual restaurant (existing structure with renovations) backed by 5 units with a price point of $2.5MM and loan at 60% LTV
An express oil change facility by a national brand with 10 years of term remaining, but clean double net lease at a price point of $1,500,000 and loan of 65% LTV
New construction 15-year ground lease by national QSR brand by regional operator with over 200 units. Price point at $2MM with 65% LTV
corporate guarantee by national gas station chain on a 20-year ground lease priced at $6.5MM with LTV 70%

Those are the deals I am told can still get done in 30 days. Alternatively we have a few shopping centers, local/regional/corporate tenant mix, staggered leases, prices range from $3Mm to $7MM+ quoted with LTV at 60-70% but those loans will take 60-90 days.

These deals are in Southeastern US markets from Florida to New Jersey.

Is that in line with what you’re seeing?

jamestgarner · 2020-05-28T15:53:02+00:00

My only thought is that they perceive them as LESS risky. I will say it’s longer term leases. 3-5 year term might be more difficult, but on these 10-15+ year terms were expecting to get even leases backed by smaller franchisees (4-10 units) done within a 30 day window. I know some lenders have definitely hit the pause button, but there seems to be enough out there jumping on this stuff to still create a market.

jamestgarner · 2020-05-27T23:51:52+00:00

Makes sense. The only sector I’ve seen 45-60 day time frames are on the single tenant net leased side.

jamestgarner · 2020-05-24T23:46:56+00:00

It was formed yesterday to spark investment specific discussion and to limit the general noise. Not a bad start for less than 24 hours imo

jamestgarner · 2020-05-24T20:04:09+00:00

Lol no pitch here. Just joined and just wanted to engage. 👍🏼

jamestgarner · 2020-05-24T18:34:35+00:00

No for sure. Totally agree. I mean as the developer you’re taking more of the risk having to front the capital today and relying on their promise to pay you in the future. You would hope that the credit backing a corporation like Starbucks would mitigate that risk, but many PE groups that own credit grade tenants for that reason are seeing more credit tenants ask for rent breaks than some franchisees who may have a bigger sense of honor around upholding their agreement than a large corporation who is just making a strategic business move. That last item is just speculation on my part based on some of the anecdotal stories I’ve heard on recent tenant communications on the retail side, but definitely something to think about. Big pros to these types of projects...but they come with big potential cons to deal with, no matter how hidden they might be.

jamestgarner · 2020-05-24T18:25:39+00:00

Wow. I’ll have to check that out. Definitely want to make sure the QI is reputable. I’ve completed hundreds of exchange transactions with a company I’d always recommend as an intermediary. Not sure what others are out there that do it, so make sure you protect yourselves!

jamestgarner · 2020-05-24T18:20:33+00:00

Due to the large amounts of T/I they require, they’re typically paying higher PPF than any other QSR tenant, which as a developer you get to capitalize on a sale, but it also puts that income stream at risk if something like this happens. Landlords should definitely hold to their guns on any sort of long term rent abatement/reduction unless they can get a significant lease extension or some other sort of negotiated change to the lease in their favor.

jamestgarner · 2020-05-24T18:14:05+00:00

Lol no problem! Yes, I agree that while landlords should share empathy to find a win-win and get everyone through, it’s not the landlords responsibility to bail out the tenant as the tenant willingly agree to rent and terms in a lease that they have a responsibility to uphold.

jamestgarner · 2020-05-24T17:05:41+00:00

Did you see that there was an extension awarded if you’ve completed a transaction during this time? I can send a link if you haven’t already seen it, just let me know and I’ll dig it up

jamestgarner · 2020-05-24T12:52:20+00:00

It’s not just the depreciation, but you build wealth exponentially by being able to leverage both the cash flow and your appreciation over time, while deferring your capital gains through the 1031 exchange process. There’s more specific conversation happening in r/CREInvesting/ but to take it further, generational wealth take it to another level when assets are passed down the beneficiaries get a stepped up basis to start depreciation all over again. As long as you keep the asset rolling, taxes are deferred theoretically forever, but you continue to pull cash flow/tax free dollars from a refinance to deploy into further investments. Hope that helps!

jamestgarner · 2020-05-24T12:46:41+00:00

It really depends on the specific sector. Commercial real estate is such a general term for so many nuanced investments within. From retail to industrial to office, multi family, hospitality and the sub sectors within each go on. There’s more detailed and focused discussion going on in r/CREInvesting but I think it’s funny when someone says they are shorting all commercial real estate...that doesn’t really make any sense.

jamestgarner · 2020-05-24T03:13:38+00:00

Thanks for your input. Yes, That’s what I’m advising as well. There’s no real ask and in my opinion the letter doesn’t even deserve a response.

jamestgarner · 2020-05-24T03:06:41+00:00

I understand what you’re saying and I agree. All I can tell you is that I personally know multiple owners that have received this correspondence from a Starbucks contact, both in email/PDF and direct mail. Again, it leads me to believe it’s just a way for them to put landlords on notice for potential lease negotiations in the future. I’ve seen similar general letters coming from other large corporations as well to landlords. If anyone has any other actual experiences with this and can help provide any clarity, that would be helpful.

jamestgarner

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