Micro-unit developments can lease up faster at lower risk than larger units. I don't see how this isn't the future of office, retail, restaurants, etc. We've proven this thesis multiple times over the last few years and I'd love to see more of these around the country.
#retwit
Closed on this bad boy today. 1.5m sq ft former wool mill that will be utilized for light industrial / self-storage in the short-term so we can cash flow it into adaptive reuse retail, restaurant, and office
Intriguing infographic on restaurant parking requirements sent to me by
@wBaxterLee
. Pretty interesting how different the requirements are between
#Nashville
and Memphis. Time to rethink parking?
#walkability
The Wash is a 6-bay car wash that we converted into 5 micro-restaurants and a bar in East Nashville. Each of the bays are the original car wash bays - only about 380 sq. ft. per restaurant. Signed all 6 leases within two weeks of announcing the project.
If you haven’t met
@micahlacher
or heard the story behind The Russell, you’re missing out. They’re bringing in quite a bit of cash flow and 100% of profits go to charity.
Inside Nashville's Most Profitable Airbnb Hotel | Story of the Deal
#retwit
Last night, I officially launched my course on commercial real estate investing. It’s been over a year in the making but have been thinking about it since I first joined the industry a decade ago. There’s not enough solid information out there for newcomers to this industry (1/?)
Real estate is historically a strong hedge against inflation. And the best asset to own? Hotels. Pricing fluctuates on a daily basis vs. 1-yr apartment leases, 10-yr NNN leases.
Last night, The Wash took home
@UrbanLandInst
awards for Excellence in Development and People’s Choice. Couldn’t be more grateful to everyone on the team that brought this dream to life.
This is one of the reasons we’re getting back into residential development. We see a massive gap here that can add housing equity back into our neighborhoods
We need housing supply. Middle housing is about creating housing diversity in form. It’s not equitable or sustainable to preserve single-family density within our established communities or zone everything to mid-rise developments. The missing middle is sensitive, gentle density.
Alright, it’s 2024 - how do we not have non-alcoholic options at every bar by now? I go from a paying customer to that annoying guy drinking free water.
Roads cost society 920x more than sidewalks and 115x more than bike lanes. Walkability builds communities and increases property values, roads destroy communities and decrease values. No brainer
#walkbility
#realestate
I tell my agents this all the time - return phone calls and you'll be in the top 10% of commercial real estate brokers out there. Why does it seem like the fundamentals of sales are so broken in this industry sometimes??
@twallyweb
Helps to stagger the units, too - I typically offset them by 2 feet to create more depth and, therefore, a more approachable and interesting facade. Here’s an example of some townhomes I did in Nashville.
Thinking about starting a series podcast that shares monthly updates as we go through a project from contract to close and sharing my thoughts on everything. Would you find that interesting?
Toured a large apt complex yesterday, developer said it took 60 days to permit. Looked it up on epermits and it really took them 9 months. Permitting times in Nashville are so embarrassing that developers are lying about timelines for approval 👎🏼
The best listing brokers today are the ones that are able to fully explain creative financing and deal structures to their clients. These guys are closing deals left and right despite being in a “down” market.
I, for one, am all for
@NashvilleSC
not having tens of thousands of parking spaces for the stadium. The only way to change driving habits within the city is to force it through projects like this one. Plenty of alternative options and no wasted real estate for a mostly vacant lot
Getting some land just outside of the city was one of the best moves I made in 2022 so that I could unplug and replenish over the weekend. Finishing out half my barn for a wood shop (before, during)
Signage up at the new offices today! This sign has been with the property forever and is now grandfathered in (couldn’t build it today). One of the biggest reasons I bought the property a few years ago
Not every aspect of your investing life needs to be absolutely optimized for maximum returns. Pay off that home mortgage. Keep that lower paying tenant that’s been there for years. Eat the avocado toast. Life is too short to be stressed about all of that.
How to learn about CRE:
Read the books. Take the classes. Watch the videos. Listen to the podcasts. Breakfast with the experts. But above all - just take action.
My first deal taught me more about commercial real estate investing than years of self-education
After nearly a year of grueling work and discussions with *50+* lenders, we’ve finally secured financing for our boutique hotel on Dickerson Pike. Who would’ve though financing hospitality post-COVID would be difficult?! 😂
@JETannenbaum
Nah, I can’t stand parking so I love it. Waste of good real estate, honestly. Removing parking requirements gave 6 small businesses a chance at this location where only 1 could’ve gone before. Plenty of street parking and walkability help - couldn’t do this in suburbia
Everyone talks about buying properties with seller financing, but selling your properties with seller financing is so underrated. One of the best syndications we’ve ever had was a last minute pivot to carry the note when the buyer couldn’t secure financing. Here’s how we did it:
Build to rent might be the cause of the next housing crisis (if it isn’t already). I was having a conversation with a colleague who develops BTR neighborhoods almost exclusively now. He told me how much these houses rent for and the cap rates he was achieving - around 3%! [1/?]
Thank you all for the amazing support and feedback you give on our projects - they’re designed for you! We want to change how cities and neighborhoods are developed. Small business, green space, sustainability, adaptive reuse, and local engagement = community success
Cash is king right now. Deals are being made and cap rates are shifting, but only with all-cash, aggressive timelines to close. We’re seeing upwards of 50-100 basis point swings on STNL deals with the right selling group. The triple net market is alive and well, sans debt
@UrbanEastNash
It’s not a private market issue - it’s on metro. They’re collecting more fees than they ever have before with more development and taxes than Nashville has ever seen and they still haven’t expanded planning to accommodate
Real estate is a marathon, not a sprint. Take your time to find the right deals, don’t put too much debt on your assets, keep the tenants that positively benefit the project but might not pay market / above market rates. If you’re in it for the long haul, time is on your side
Uncertainty in the real estate market seems to be catching up to us now. Lenders are pulling back or not lending at all on A+D / land loans, investors that purchased in ‘21 or ‘22 with ARMs are feeling the pain. Opportunity is coming down the pike for cash-flush investors.
In honor of the big announcement today from
@BobKnakal
, we’re dropping the interview from CCC Atlanta:
Unlocking The Secrets To $20 Billion In Sales With Bob Knakal
For those interested in commercial real estate development, partnering with an experienced developer can be invaluable.
Having a mentor / partner that can guide you each step of the way and LEND you their credibility, balance sheet, etc. will cut your learning curve in half.
Chattanooga has really opened my mind to the possibilities in tertiary markets. I love Nashville and it’ll likely always be home base, but there’s something special about these smaller, growing cities.
@sweatystartup
That’s one of the reasons I got into twitter. Far easier to share your stream of consciousness and I, for one, believe that transparency to LPs, partners, etc. is a must-have for success. Keep it real!
Building meaningful connections / relationships in the industry is key to success when you first get started in
#commercialrealestate
. Love what CRE 615 is doing for young professionals here. Wish I had something like that when I got started in the commercial world 10 years ago!
I’m still bullish in this market. Investors have short memories - the first deal I ever did had an interest rate of 5.25% and we were over the moon at being able to get that. You’ve just gotta work a bit harder to increase that NOI and hold out for a refi with better terms
If you’re not reaching out to the neighbors and asking for their ideas on what a project could be, you’re missing out on valuable community buy-in and potential great ideas from those that would utilize it the most. We do this on every project and it’s gamechanging
Left an interview this morning with
@ULI_Nashville
for their Excellence in Development Awards for our adaptive reuse project, The Wash. Exciting to be considered alongside some behemoth Nashville projects!
It makes more sense to move the supermarket closer to the neighborhood instead of increasing the speeds that you can take to get there. Just sayin’ 🤷🏻♂️
In 1993, 400 Broadway (now home to Dierks Bentley's Whiskey Row) sold for $1,000,000. Last year, it traded for $30,500,000. Sure, you can make decent money fast in commercial real estate, but the real returns are delivered over time.
Have a property under contract? Give the seller progress updates, when reasonable. I see far too many brokers / investors / developers only communicate with sellers when they need something (meaning it’s a negative communication loop) and that doesn’t go well. Share the good, too
You don’t need millions in the bank or high credit to invest in commercial real estate. You just gotta get creative. I did my first office building at 25 with no money, found two partners, and rolled my commission in as equity. That’s all it takes
Late to the party on this one, but finally reading
@StrongTowns
. Been following the podcast / principals for quite some time, but it’s a great read on how our cities’ design has caused much of our current issues, including obesity, infrastructure, and wealth disparity
“Is the growth really serving you?” - the new question I ask myself before any new initiative we take on, whether it’s hiring, acquiring, etc. Growth for growth’s sake just isn’t worth it to me anymore
“At first they built the road then they built the town
That's why we're still driving around and around” -
@arcadefire
. Cities were built around cars, not people. It’s time to retrofit our communities!
#walkability
#sustainability
#cre
If you pitch me on how amazing your commission-based sales team is and then want to charge me an onboarding fee to get started, I automatically lose all faith in your ability to sell anything.
In the 2nd half of 2022, we sold one of my favorite deals in Chattanooga. While we all wanted to finish the project, we were offered 2.5x what we’d paid for it only 16 months prior. What “failed” deals have you had?
#commercialrealestate
🤔 What if
#Nashville
inversed density requirements and had a minimum density along major corridors? Higher density development promotes attainable housing, increases
#walkability
, and lessens traffic issues
If you're interested in getting into commercial real estate, come to our monthly happy hour at The Wash. Everyone is welcome!
Email Office
@TheCaubleGroup
.com to get on the invite list.
Why buy an Airbnb when you can build it?? New vlog live on YouTube digging into this site, underwriting the development, and deciding whether to keep or sell these units
#commercialrealestate
#realestateinvesting
#airbnb
Logan Freeman and I are starting a commercial real estate brokerage mastermind - filling what we see as a MAJOR gap in the education and growth space for commercial real estate brokers.
Is it worth moving faster to buy a property to get a discount? Maybe I'm conservative, but my thought is almost always no. I'd rather have zoning, plans, and permits in place and pay a premium for a property than to take any risk of not achieving those just to hit a cheaper price
Someone here on ReTwit suggested I meet Tyler
@TheCaubleGroup
- THANKS! Dudes a BEAST in the Adaptive ReUse Development space, can’t wait to tour one of his projects tomorrow!
#SSDF18
I’ve wanted to acquire this site for two years - here’s the story behind our latest acquisition, Salt Ranch: We Bought a Roadside Hotel (The Story of The Deal)
Many of you have reached out to ask me to comment on my YT channel about the recent indictment of Matt Onofrio considering my commentary on NNN investments. The story is wild, unsurprising, and disappointing to see. Please DM me if there are specifics you want to know. (1/?)
I've heard people argue that commercial real estate investing often requires substantial upfront capital, making it less accessible for individual investors. There's over 500 listings on Loopnet right now under $200k, excluding land and condos.
Nashville is just a special market and sometimes it’s tough for Nashvillians to understand that. But buyers from Austin, Chicago, Atlanta, etc. have all “been there, done that” and know exactly where we’re headed. That’s why they want in *now*
@GamesevenSD
We’re planning to keep them and bring the name back vertically on the stacks (like this logo we created, minus the building outlines). It can be seen all throughout the valley and is definitely a beacon
Let’s raise taxes on vacant properties - aka parking lots. They’re a waste of space, make cities less
#walkable
, and provide little / no benefit to society.
#Investors
see them as a land-banking opportunity, which has caused the destruction of many historic buildings
Malls are the perfect adaptive reuse project. Add multifamily and office on top and create vertical cities. Who wouldn’t want to live / open a business there?
#urbanism
#cre
Nashville used to have a pretty solid streetcar system back in the day (the trolley barns are where Pinewood Social /
@entrecenter
are now). Would be a solid, comparatively inexpensive mass transit option and could occupy one lane of the many overbuilt roads in
#Nashville
Wanna know a typical week in CRE brokerage?
One of my guys had 2 deals fall apart after months of work and 2 more deals popup out of nowhere to go under contract.
Can’t control what happens sometimes, but can control the effort you put in to creating more opportunities.
I told myself that as soon as I know enough about commercial real estate, I'd teach others how to do it. Now, I've launched my Office Hours livestream Tuesdays at 8:30am CST. Come join me and ask your questions!
@urbangrout
The overlay change on Gallatin is the only reason we were able to build The Wash. Previous requirements were for 20+ parking spaces for those 6 concepts, which was impossible to do on that lot. Dropping parking requirements brings better projects to neighborhoods
Cap rates are dependent on interest rates. As interest rates rise, sales price falls. Buyers won’t accept lower yield simply for the privilege of buying commercial real estate.
When realtors say “congrats to my client on beating out 37 offers for their new home purchase” all I see is “congrats to my clients for being willing to pay more than 37 other people were for this place.” Not sure it really conveys the message they think it does 😂
Commercial real estate brokerage is one of the best paths to take in the commercial real estate world if you're just getting started. Here's how Chad, Jesse, Adam and I built our books of businesses and scaled into our own investments.
“I’m thinking of eventually moving to a bigger market. Should I start commercial real estate where I am or make the move first?”
CRE varies market by market. In your first 5+ years, I say pick a market and stay there before making a switch. There’s too much to learn that (1/?)
You absolutely can't miss Monday's Main Event! Why? The one and only, Tyler Cauble, will be headlining at REIN for the first time ever! Curious about commercial real estate? Tyler will break down how to scale your passive income with commercial properties
So, I bought an ‘87 Lincoln Limo and hired a driver so I can utilize it as a mobile office. Here’s the progress on the renovations
#realestate
#nashville
Affordable housing development needs more government incentives. Developers can't pay market rates for land, development, and construction then turn around and rent out units at below-market prices. We need better public/private partnership opportunities.
The average American spends $3,800/yr on fuel for your vehicle - that’s two months’ worth of rent for an apartment near the urban core of Nashville. Downtown isn’t expensive, your suburban lifestyle is