Matt Krogman

Greater Midwest (usually) CRE Development & Construction. About $95MM built or being built. Ignore the @…made it long ago…

[Matt Krogman @punchyourself]

@SBA_Matthias Curious how this impacts the traditional owner occupied qualifier based on psf allocation of use? Does owner still need to occupy >50% of gross square footage when other tenants exist in a building? Or have any of those boxes changed towards a cost allocation methodology?

[Matt Krogman @punchyourself]

@WalbridgeSMB @SBA_Matthias @packers Private suite rentals at Lambeau Field cost between $10,000 and $30,000 per single game on average, while full-season or multi-year leases vary significantly by location and capacity. Suite packages include 12, 20, 25 or 36 tickets depending on size.

[Matt Krogman @punchyourself]

@JD_DeYonker Back in my bank days, looked at a semi-minor credit request for a couple guys who owned around 22 car dealerships. Total assets in the 9-figures, annual income around $12MM…credit scores in the high 600s. 🤷🏼‍♂️

[Matt Krogman @punchyourself]

@SBALenderLyons They can if they pay it all back and make the government whole on their initial note! Ran into this with a dental client way back in the US Bank days. Didn’t qualify for SBA because of a default 15 years prior. Paid it all back with interest. Good to go.

[Matt Krogman @punchyourself]

@loganjrankin Facts. Actually blows my mind how many owners view PM as a secondary commodity. The renters pay the mortgage and create the NOI. Customer service keeps income stable. Not having control of your revenue is a pretty scary way to operate.

[Matt Krogman @punchyourself]

@realEstateTrent Plenty of ego in the real estate world. Some are successful. Everyone in the market knows who they are. Most typically hate working with them.

[Matt Krogman @punchyourself]

@robbiehendricks @DallasAptGP Agreed. Quality, concise framing. Still, like all hypotheticals, myriad of additional needed info: tax strategies of the LP’s, pipeline and stage of other investment vehicles, both macro and micro pressures on submarket, age and quality of structure, etc. The fun part! Analysis!

[Matt Krogman @punchyourself]

@ChadGriffiths One of the first posts I’ve seen actually hit what we’re all wondering. Soooo many questions. The goal of any successful development team should be to try to kill a deal. Everyone should be poking holes. If it can survive the stress of the team, it’s worth pursuing.

[Matt Krogman @punchyourself]

@credealjunkie Had a conversation today with a part-time analyst we brought in from a family office team. Very location-specific multifamily portfolio balance sheet well into 9 figures. Total LTV on the entire holdings? About 35%. At a certain level, strategy shifts from income to preservation.

[Matt Krogman @punchyourself]

@RadioFreeTom Yikes

[Matt Krogman @punchyourself]

@realEstateTrent What’s the best way to get in contact? I have a 15,000 ft.² Class A, built ‘23. 55% leased w/credit tenants. Just off interstate, great demos, close to 3.5MM sq. ft. Amazon distribution center delivering this fall.

[Matt Krogman @punchyourself]

@realEstateTrent Stepping over dollars to pick up pennies. Crazy how common this is.

[Matt Krogman @punchyourself]

@realEstateTrent A Brother All-in-One Laser printer. Upgraded about 6 years ago for the same frustration. More expensive up front, toner is a bit expensive, but good for 2000 pages. Never had a headache with my printer since.

[Matt Krogman @punchyourself]

@realEstateTrent @jringel I preach/remind everyone I talk to that’s high on Accelerated Depreciation about recapture upon a sale. Great tax strategy IF: long hold + high income to offset. Limits sale options if earlier than planned. Recapture + Cap Gains is brutal. Changes the exit calcs substantially.

[Matt Krogman @punchyourself]

@YonahWeiss Cost Seg is a great strategy and one I look to employ on every long-hold asset. A bit more context, it needs to be applied only in longer-hold scenarios. Otherwise the depreciation recapture on a quicker turn sale of the asset plus the cap gains is a brutal reckoning on exit.

[Matt Krogman @punchyourself]

@realEstateTrent The only folks in my career I’ve seen have true success utilizing 1031 are those who know they have a sale coming for an asset AT LEAST 12 months in advance AND have the connections in the brokerage and CRE markets to start a review pipeline of properties to find a quality option

[Matt Krogman @punchyourself]

@SBALenderLyons Attorneys catch a lot of strays for being a rip off or not worth it. That’s inexperience talking…blows my mind how many people in the CRE world that are part-timers do deals without counsel double-checking contract language. Cheapest insurance policy you can buy, IMO.

[Matt Krogman @punchyourself]

@robbiehendricks Facts. Newspaper article just came out there showing that new construction starts essentially halted after the rent cap legislation.