Develop strip mall or plaza Keller TX 76244 along I-35W & RTE 377

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Develop strip mall or plaza Keller TX 76244 along I-35W & RTE 377

John Van der Kieft
Investor · Dallas/Fort Worth, TX · Member since 2016 · 14 posts · 2 votes

Advice on investing in strip malls needed.

What would be a good first investment? I have no experience in CRE or strip malls/plazas...

Market: Keller TX area along I-35W and RTE 377.

Strategy:

  1. Invest in unimproved land?
  2. Pad Site?
  3. One unit in existing property?
  4. Multiple units in existing property?
  5. Rehab older property site?
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Martin Z.
Glendale, CA · Member since 2013 · 303 posts · 67 votes
9y

"I have no experience in CRE or strip malls/plazas" 

I would shy away from high risk deals to begin  without having knowledge and experience.

To begin with, I would probably go with stabilized property, multi family with minimal rehab needed, or retail that isn't too much on the value add side.

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  • Martin Z.
    Glendale, CA · Member since 2013 · 303 posts · 67 votes
    9y

    "I have no experience in CRE or strip malls/plazas" 

    I would shy away from high risk deals to begin  without having knowledge and experience.

    To begin with, I would probably go with stabilized property, multi family with minimal rehab needed, or retail that isn't too much on the value add side.

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    I like building small tracts with STNL and MTNL. Less risk than back filling large new strip centers with mom and pop and national tenants.

    Instead build to suit for national brands for single buildings and then say a 2 to 4 tenant national strip center.

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    1Reply
  • Anderson Schulle
    Turnkey Service Provider · Fort Worth, TX · Member since 2013 · 135 posts · 41 votes
    9y
    Hi John, it really depends on your appetite for risk, desired returns, funds available. I could point you towards a few investment opportunities (new builds) I know of. Not necessarily in that area you mention though but with some great returns. PM me.
    1Reply
  • John Van der Kieft
    OP
    Investor · Dallas/Fort Worth, TX · Member since 2016 · 14 posts · 2 votes
    9y

    @Martin Z. When you say "...Retail that isn't too much on the value add side."  Please elaborate.  Re-multi family, I'm keen to stay more on the business to business arena.  Maybe deluding myself.  The idea of business tenants over consumer type tenants appeals to me.  Are my thoughts misplaced?

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  • John Van der Kieft
    OP
    Investor · Dallas/Fort Worth, TX · Member since 2016 · 14 posts · 2 votes
    9y

    @Joel Owens Thank you Joel. Is there a list or site that I could find NNN prospects that are interested in my market?

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    John I do not like residential development myself. The government has stepped in and put additional requirements on landlords and less on the tenants. That makes it a tougher environment for development and long term success.

    This is why I like commercial and dealing with business tenants as it's in my wheel house. For developers it's different flavors of ice cream that suits their taste. Some love multifamily, other self storage,other retail. For me it's retail.

    I contact the national tenants real estate directors directly. Sometimes they deal directly and other times they have dedicated leasing brokers in each market that scouts sites for them and does the heavy lifting saving them time. So  they will send us their way on occasion. Other instances a national company only franchises so you submit a site to them and then they check their database of local existing franchisees who want more locations  or a new franchisee wanting to open up in that area.

    I find the local to regional tenants are less fickle on location and act quicker. The national tenants tend to have better resale value but are more methodical in their process and expansion plans and take awhile to make a decision to commit to a site. 

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    1Reply
  • Martin Z.
    Glendale, CA · Member since 2013 · 303 posts · 67 votes
    9y

    I meant retail properties with stable tenants in place, as oppose to retail centers with large vacancies.

    1Reply
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