Stu

Industrial Real Estate

[Stu @Stu_V15]

Yeah I guess I would not go so far as to blame anyone. It’s just a thing that’s happening, and I don’t think it’s necessarily a good thing.

Though I could be convinced that those “selling out” are abandoning a very American type of noblesse oblige that binds the proverbial local car dealer (who is at basically an American aristocrat) to a certain level of business and civic stewardship.

[Stu @Stu_V15]

@chr1sthomp @moseskagan Idk - might not be a solution. Not every problem demands a policy response. I just think it’s ok for folk to be frustrated with PE.

[Stu @Stu_V15]

@EllliotttB Not clear to me that a fiscal impulse has to per see trickle up rather than be broadly dispersed. Maybe we’re just really bad at it and/or something else is off

[Stu @Stu_V15]

@EllliotttB They’ve got one in milledgeville!

[Stu @Stu_V15]

@PerrySolem I need to see your response. This is incredible

[Stu @Stu_V15]

@redwood_ryan_a @PerrySolem Got a 3rd that looks exactly the same haha

[Stu @Stu_V15]

@PerrySolem My oldest took credit for all the fish

[Stu @Stu_V15]

All the sub-institutional folks want to manipulate assets, all the institutional folks want to manipulate balance sheets and build scale.

Candidly I think there’s more opportunity for both if they trade strategies.

Value-add industrial is way too crowded right now. I’d try to prefect a strategy that doesn’t require value add.

[Stu @Stu_V15]

@CaseyMericle @moseskagan We do redemptions once a year

[Stu @Stu_V15]

@moseskagan Control is always the hang up, concentration a non-issue bc we’re offering more diversity than they currently have.

If you exchange enough, however, we’ll give you a board seat. Not control, but some influence.

[Stu @Stu_V15]

@rhunterh @PerrySolem I can promise this thought has never occurred to any self-storage investor and never will

[Stu @Stu_V15]

@EllliotttB I mean just the cost of the jet, right? Just syndicate the jet.

“Savvy investors are taking to the skies and lowering their tax liabilities along the way thanks to a little known Trump tax loophole”

Candy from a baby

[Stu @Stu_V15]

@HamptonPrezcott @PerrySolem bat signal

[Stu @Stu_V15]

@moseskagan @Jefffeldman https://t.co/lkVDCccO14

[Stu @Stu_V15]

Survive until 35!

[Stu @Stu_V15]

@PerrySolem Why not just give it to the hoa?

[Stu @Stu_V15]

No - you and the broker do not have the same risk appetite / profile. you have to manage the tenant, spend capital on the tenant, deal with operational issues the tenant may create, etc. In smaller industrial, credit tenants can come with additional (non-monetary) risks, additional upfront capital, and they are can be more demanding tenants. I’d be pissed if a broker was brushing off mom & pops in favor or BigCo for my space in many situations. Also were am I in the business plan? What’s my goal? Is my loan amount to mature? Do I have capital for TI? Do I have time for a long lease negotiation with BigCo? Broker likely doesn’t know or care. Bring me all the options and let me pick, I’ll pay you at execution.

[Stu @Stu_V15]

@moseskagan Also - do you want the broker to bring you all options and yield to you on credit or do you want them to push credit on you regardless of other factors?

[Stu @Stu_V15]

@moseskagan I’m on team broker here. You uw tenant credit risk, not them.