I know an investor who bought an office building in downtown Denver for $50/foot for 1MM square feet and $7.5MM in NOI. That’s a 15% cap.
If you use 50% leverage with a 10% coupon you’re cash flowing at $5MM annually on $25MM of equity. 25% CoC!
That feels so much better than an adaptive reuse execution.
Mamdani endorses fellow Democratic socialist who stands up to corporate power and is married to a managing director of Allen & Co.
https://t.co/FTkEs6ZerG
This is exactly right, not just for great neighborhoods, but for affordable ones too.
For example, Houston consistently ranks among the top five MSAs for in-migration, yet its rent growth remains below CPI.
The reason is simple: with no zoning constraints, developers can build enough housing to meet demand, and often exceed it.
@fortworthchris Connect it to your file storage and ask it to find a file that’s several folders deep and you’re not quite sure where and which version. Game changer. “Find me the org chart for 123 Main St”
Last night I was coding an agent to book flights and hotels. It’s endless.
Barry Sternlicht gives an insightful view about the challenges of real estate right now - and how to still make a lot of money in the current environment
Here's what he said:
"I think people, as they always do, tend to look in the rear view mirror and they look at a suboptimal performance of the real estate asset class across the last 3-4 years.
Nvidia goes up a trillion dollars in four months. Like the hot kids on the block are everything AI, everything chatbot, etc...
There are meme stocks that go from zero to $7 a share on a tweet.
Crypto - there's worthless coins with $20+ billion dollar market caps. There's a coin called Useless. It's [literally] useless. It debuted in March 2025 and it went to a $700 million value. And the coin says "we are completely useless"
In real estate people get rich but it's boring. You get rich holding on to it over long periods of time. It's not a day trading asset. The country right now is very impatient. So people want to play the hot thing.
Real estate looks sort of sad in your portfolio right now. The only thing it beats is treasuries. And even then, it's not even beaten that.
But you'll do well picking properties in the right cities... Everything is micro in real estate.
For example, I built a building in South Beach.
The first lease was $54. It's on the beach, and nobody built a new office building in 20+ years.
We leased it up in the pandemic. It's 100% leased. A tenant actually needs to grow, and they called us last week. They're paying $125 and we'll re-lease it at $175.
I mean, you can still make a lot of money if you get the micro market right."