Kevin Fickle

Acquiring Internet Resistant Retail Shopping Centers

[Jesse Michels @AlchemyAmerican]

Full episode: https://t.co/uOvQL0kZr2

[Kevin Fickle @mmgeorge17]

@nathanbarry But don’t build an empty skyscraper versus full strip mall.

[Kevin Fickle @mmgeorge17]

@ElonGerberg @Bethazor1 Nice analysis

The SQ ft per per person is very compelling.

[Kevin Fickle @mmgeorge17]

@realEstateTrent “Pre-Market”

[Kevin Fickle @mmgeorge17]

@ScottMGreer Construction costs make development of new strip malls very difficult. Dickens village would be nearly impossible today; maybe it penciled several hundred years ago.

[Kevin Fickle @mmgeorge17]

@realEstateTrent Buy an ugly one with vacancy , stabilize rents at half of market and is a 10++ yield on cost. No debt, no pressure.

Vs the beautiful one that is full and yields 6%, but few things go wrong and your yield on cost is 4%, w/ debt your op leverage is negative and CoC not existent.

[Kevin Fickle @mmgeorge17]

@TylerAlley_MCR YCC!

[Kevin Fickle @mmgeorge17]

@TylerAlley_MCR Value-add- you can attempt early term negotiations (but to your point less leverage as terms are in place). I.E. incentivize with tenant TI and free rent to strike a higher renewal rate or adjust option pricing early and have a better NOI run rate later.

[Kevin Fickle @mmgeorge17]

@realEstateTrent This is the way

[Kevin Fickle @mmgeorge17]

@credealjunkie 1/1 can’t replicate

[Kevin Fickle @mmgeorge17]

@realEstateTrent Would like to see that capital flow to treasuries :)

[Kevin Fickle @mmgeorge17]

@realEstateTrent Own the ground

[Kevin Fickle @mmgeorge17]

@realEstateTrent Awesome get SMG! It just occurred to me he was setting major records (some epic games vs the 49ers) during the s&l crises. One of those time periods you wish you could be a RE buyer in.

[Kevin Fickle @mmgeorge17]

@LPInvestor Ambulatory storage and reserve space for a few ambulances?

Charter school ? Have designated drop off / pick up spaces. If there is density and walking around there as well…

[Kevin Fickle @mmgeorge17]

@realEstateTrent I believe this owner branched off from Trujillo’s (SDSU staple connected to a Gas Station). Nothing like it!

[Kevin Fickle @mmgeorge17]

@tawillionaire That is around $830K if you adjust for 3% annual inflation in today’s dollars. Around $949 psf. Rough outcome.

We are constantly underwriting rents that are below 2006-2007 in our retail shopping centers without adjusting for inflation. Rents also don’t always go up.

[Kevin Fickle @mmgeorge17]

@tyleralley24 Yup— Definitely not price per pound buyers. I.E. these are too “ugly”, there is no credit. Perhaps once the center is upgraded and tenant enhancements have happened. Also vacant jr box, without a tenant in tow, makes it “tough”. And other arbitrary restrictions like demographics

[Kevin Fickle @mmgeorge17]

@chernobelskiy @tommywarboys

[Kevin Fickle @mmgeorge17]

@realEstateTrent I would choose moderate inflation over deflation.

But an extreme either way is not good.

Persistent high inflation might inevitably force deflation (tightening, credit freeze).

Then would start a new cycle of normalized values and lower rates.