324. We Stopped Buying Apartments Because of Deals Like THIS
The Commercial Real Estate Investor Podcast · The Commercial Real Estate Investor Podcast
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Show Notes
Key Takeaways:
Flex Space Advantages:
More versatile than multi-family real estate
Allows for diverse tenant mix
Easier to lease smaller suites quickly
More logical and less emotional tenant interactions
Investment Strategy:
Buy properties that can be easily modified
Focus on value-add opportunities
Aim for full occupancy and market-rate rents
Target properties with flexible layout options
Financial Approach:
Invest in properties with potential for double-digit returns
Prefer 7% preferred return for investors
70/30 profit split between investors and general partners
Carefully manage capital improvements and operating expenses
Maintenance and Leasing:
Prioritize clean, functional spaces over aesthetic upgrades
Work collaboratively with tenants on maintenance
Seek longer-term leases to increase property value
Focus on efficient space utilization
Deal Specifics (Friars Crossing):
100,000 square foot flex space in Chattanooga
Purchased for just over $10 million
Currently 91% occupied
Goal to fully occupy within 12 months and achieve market rents