Real Angle: Building Success in Commercial Real Estate Joshua Kahr

In this conversation, Ian Formigle, Chief Investment Officer at CrowdStreet, discusses the role of CrowdStreet as an online platform for individuals to invest in commercial real estate projects. He explains how CrowdStreet acts as a broker-dealer and offers investment opportunities in various asset classes and geographies. Ian also highlights the growth of the investment advisor side of CrowdStreet and the different preferences of investors.
 
He shares the factors that contributed to CrowdStreet's success in the online platform market and the importance of avoiding platform risk. Ian discusses the types of real estate investments that attract investors, such as multifamily properties, and the challenges of investing in niche product types. He also explains the process of finding and vetting sponsors for the platform and the criteria used for screening. Finally, Ian discusses the short-term goals of CrowdStreet, including recovering and growing in 2024.
 
Takeaways
CrowdStreet is an online platform for individuals to invest in commercial real estate projects across the country.
CrowdStreet acts as a broker-dealer and offers investment opportunities in various asset classes and geographies.
Investors on CrowdStreet can choose between investing individually or through funds managed by CrowdStreet Advisors.
Multifamily properties are a popular investment choice on the platform due to their approachability and potential for cash flow.
CrowdStreet screens and vets sponsors to ensure they meet the platform's criteria and maintain a long-term relationship based on trust.

Chapters
00:00 Introduction and Overview
00:43 What does CrowdStreet do?
01:38 CrowdStreet's Role as a Broker-Dealer
03:00 Growth in Investment Advisor Side
04:07 Surviving and Thriving in the Online Platform Market
05:23 Factors Contributing to CrowdStreet's Success
06:11 Differentiating CrowdStreet's Marketplace
07:02 Avoiding Platform Risk
08:27 Creating a Scalable Investor Experience
09:46 Transitioning from Active to Passive Real Estate Investing
11:58 Understanding Crowdfunding and Regulation 506
14:13 Differentiating CrowdStreet from True Crowdfunding
15:38 Investor Interest in Multifamily Real Estate
17:15 Product Types that Attract Investors
19:22 Product Types that Lack Investor Interest
21:19 Avoiding Niche and Risky Product Types
23:21 Finding and Vetting Sponsors
26:23 Recovering and Growing in 2024
31:10 Short-Term Goals for CrowdStreet

---
This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

Chris Pawlik, co-founder of EPR Squared, explains the concept of energy producing retail realty and how the company offers a sale leaseback of energy rights to property owners. By developing energy rights behind the meter, property owners can decrease operating expenses and increase net operating income. The agreements typically last around seven years, and EPR Squared provides a percentage rent to the property owner based on the revenue generated from the power. The company targets projects with a minimum size of 30,000 to 50,000 square feet, but is also developing an energy rights portal to accommodate smaller projects.
 
Takeaways
EPR Squared offers a sale leaseback of energy rights to property owners, allowing them to decrease operating expenses and increase net operating income.
The agreements typically last around seven years, and property owners receive a percentage rent based on the revenue generated from the power.
EPR Squared targets projects with a minimum size of 30,000 to 50,000 square feet, but is developing an energy rights portal to accommodate smaller projects.
The real estate market conditions, such as interest rates and leasing activity, can impact the adoption of EPR Squared's services.

Chapters
 
00:00 Introduction and Company Overview
00:49 Explanation of EPR Squared
04:02 Sale Leaseback of Energy Rights
05:54 Revenue Sharing Agreement
08:25 Duration of Agreements
09:57 Impact of Real Estate Market on EPR Squared
14:54 Market Potential and Location
17:03 Comparison to Other Financing Options
20:56 Longevity of Solar Equipment
21:08 Customer Acquisition
23:29 Surprises in the Business
28:52 Impact of Real Estate Market on EPR Squared
32:48 Minimum Size for EPR Squared Projects
34:42 Energy Rights Portal

---
This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

SummaryIn this conversation, Jason Mandel, CEO of the Mandel Family Office, discusses the basics of family offices and the services they provide. He explains the difference between single family offices and multi-family offices, highlighting the benefits of the latter. Mandel emphasizes the importance of holistic financial advice and the role of a family office in helping families avoid controversy and disintegration. He also discusses philanthropic ambitions, legacy planning, and tax minimization strategies. Additionally, Mandel shares insights on utilizing insurance solutions for wealth management, investment funds and strategies, and concerns and challenges faced by clients. He concludes by discussing client acquisition and referrals.
Takeaways
Family offices provide holistic financial advice and services to wealthy individuals and families.
Multi-family offices offer a range of services and allow clients to share expenses, reducing costs.
Family offices can help families avoid controversy and disintegration by providing unbiased advice and structuring solutions.
Insurance solutions can be utilized for wealth management, tax minimization, and legacy planning.
Investment funds and strategies can be tailored to meet the unique needs and goals of clients.
Client acquisition for family offices often comes through referrals from lawyers and accountants.

Chapters
00:00 Introduction and Background
01:01 Starting a Family Office
02:39 Single Family Office vs. Multi-Family Office
03:35 Benefits of a Multi-Family Office
06:06 The Importance of Holistic Financial Advice
08:36 Avoiding Controversy and Family Disintegration
09:35 Philanthropic Ambitions and Legacy Planning
11:00 Utilizing Insurance Solutions for Wealth Management
13:05 Tax Minimization Strategies
14:45 Utilizing Life Insurance for Tax-Free Growth
19:36 Investment Funds and Strategies
21:33 Asset-Backed Lending and Tax-Free Retirement Plans
29:46 Concerns and Challenges for Clients

---
This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

Chad Blevens from Repower Holdings discusses their unique approach to financing energy improvement projects in commercial real estate. Repower Holdings aims to provide capital for energy improvement projects that are part of larger real estate deals, offering an equity position in the overall asset. This approach aligns the interests of the energy improvement provider and the real estate investor, driving trust and collaboration. The strategy is applicable to various asset classes and regions, with a focus on high energy use intensity and regions with higher energy costs. Repower Holdings plans to start deploying capital in Q1 and expects to have a balanced portfolio across asset classes and regions.
Takeaways
Repower Holdings provides capital for energy improvement projects in commercial real estate, offering an equity position in the overall asset.
Their unique approach aligns the interests of the energy improvement provider and the real estate investor, driving trust and collaboration.
The strategy is applicable to various asset classes and regions, with a focus on high energy use intensity and regions with higher energy costs.
Repower Holdings plans to start deploying capital in Q1 and expects to have a balanced portfolio across asset classes and regions.
Chapters
00:00 Introduction and Overview
00:57 Repower Holdings' Concept and Objectives
03:23 Equity Position in Real Estate Deals
07:10 Repower Holdings' Differentiation
09:32 Partnership with Correlate Energy
10:29 Expanding Financing Options 11:57 Equity Financing vs. PPA Financing
13:23 Focus on Ground-Up Development and Value-Add Projects
16:00 Case Study: Energy Retrofit of a 1970s Vintage Apartment Complex
20:51 Importance of Energy Efficiency in Real Estate
22:16 Energy Efficiency Challenges and Low-Hanging Fruit
24:35 Alignment of Interests and Trust
26:32 Fundraising and Deployment Timeline
28:20 Target Market and Product Types
30:11 Balanced Portfolio Approach
34:04 Long-Term Viability of the Strategy 
---
This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

In this conversation, Josh Kahr speaks with John Allen, founder and president of Streamline Development Group. They discuss John's unconventional route into real estate development and the focus of Streamline Development on urban infill projects in San Diego. They also explore the high demand for rental properties in San Diego, the presence of national players in the market, and the challenges of finding development sites. John shares insights into the legislative edge that Streamline Development has in shaping upcoming regulations and their plans for future growth and expansion, including a focus on middle-income housing. They also discuss how sometimes historic preservation can be used as a barrier to development, and how their perspective as a local player differs from the national development firms.
00:00 Introduction and Background
03:03 Starting Streamline Development
07:09 Scaling the Business
09:03 Demand for Rental Properties in San Diego
12:52 Local Developers vs. National Players
15:47 Finding Development Sites
18:36 Using Legislative Edge as an Advantage
22:42 Surprises in Recent Transactions
28:47 Future Growth and Expansion
32:21 Focus on Middle-Income Housing
---
This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases
 

In this interview, Josh Kahr gets to sit down with the whole team at Montgomery Partners and talk about the lifecycle of the asset - from acquisition to fundraising to asset management. They are a long-term value-add investor in the multifamily space. They focus on the B to C class space in markets such as California, Colorado, and Nevada, and are expanding into Utah, Washington, Idaho, and Oregon. The company has a track record of success and a loyal investor base. They are cautiously optimistic about the market in 2024, but are aware of potential challenges such as a recession and increased supply. Montgomery Partners is open to exploring new opportunities, including joint ventures and alternative investment strategies. They are also considering ancillary revenue opportunities such as solar and EV charging.
Chapters
00:00 Introduction and Company Overview
03:02 Investment Strategy and Target Markets
08:06 Market Outlook and Potential Challenges
12:12 Operational Challenges and Property Management
15:15 Recent Deals and Surprises
18:06 Market Conditions and Future Plans
25:15 Solar and Electric Vehicles
29:21 Third-Party Property Management
30:30 Cautious Optimism and Future Investments
---
This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.
Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/
Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases