Innovative Solutions in Acquiring and Disposing Industrial Assets
Adam Abushagur specializes in the acquisition and disposition of single-tenant and multi-tenant industrial assets in the southwest market. His daily mission is to support clients but in engineering innovative advisory solutions designed to bridge their objective today’s up today with their goals of the future whether involves industrial acquisition or disposition, complex sale-leaseback advisory services, or capital markets debt structuring.
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Brett:
Our next guest is from the great state of Texas and he specializes in the acquisition and disposition of single-tenant and multi-tenant industrial assets in the southwest market. His daily mission is to support clients but in engineering innovative advisory solutions designed to bridge their objective today’s up today with their goals of the future whether it involves industrial acquisition or disposition, complex sale-leaseback advisory services, or capital markets debt structuring. This next guest finds great passion and puzzling, puzzling complex obstacles into creative solutions. Please welcome to the show with me, Adam Abushagur.
Adam:
There you go.
Brett:
Adam, for our listeners getting to know you for the first time, would you give them a little bit more about your story and your current focus?
Adam:
I grew up born and raised in West Texas, grew up in El Paso and graduated high school there, and then moved to New Mexico and went to school there. I was actually a civil engineering major for three years and decided to turn the lights off one day and turn back on and switch my major to business. So I hated sitting at a computer all day. Funny enough, that’s pretty much what I do now. So I just get to interact a lot more with people, help people piece together, together with solutions, and whatnot. So it’s, it’s definitely fulfilling my eyes. And then I moved to Dallas after I graduated. And since then, coming into Dallas, I just joined a sales company, selling office supplies, business to business. And that was effectively like my learning curve. I learned how to interact with others. Learn that at the end of the day, you’re always selling yourself. And from there a year and a half into that transition into commercial real estate started with Marcus Millichap. Since then I’ve been here. And five years. Fast forward five and a half years we’re here we are.
Brett:
That’s amazing, Adam. And we’ll dive into all of those things that have to do with commercial real estate brokerage here in a minute, and especially the industrial marketplace. But before we go there, I’m curious, I wanna get to know you a little bit better, maybe picture the high school or college days. And I believe we’ve all been given certain gifts, Adam, and these gifts have been given to us to be a blessing and a help to others. Some people call them superpowers. Some people call them strengths, I believe their God-given gifts. I’m curious, what are those maybe two strengths or gifts that you believe you were given? And how does it help how you help and bless people today?
Adam:
I will say that my biggest strength is piecing together challenges. So I use this example all the time. As a kid, I remember this vividly, I basically begged my dad to come home and buy me a set of Legos and I took the Legos, dumped the whole box, and threw away the instructions. And then from there, I just tried to piece it all together. And I’ve always had a thrill for problem-solving. So in the end, what I found with real estate is that the bigger the problem The bigger the challenge, the bigger the reward fulfillment for me, so I tend to be problem seeking.
Brett:
I love that. That’s a great, great answer, and piecing together challenges, solving problems, and helping people along the way. And looking for the problems and then solving them. So is that a fair summary?
Adam:
Yep, nailed it.
Brett:
Awesome. So let’s dive into the number one perhaps problem facing commercial real estate brokers as it pertains to industrial property sales or can even be owners to not necessarily just brokers, but maybe your clients. What’s the biggest challenge facing a lot of industrial owners.
Adam:
I would say right now. I mean, really, last year was COVID. Right? So fast forward to this year, there was a lot of uncertainty in the air with what’s coming politically. Tax Reform and whatnot. We had the whole Senate race going on in January, right. So there’s a lot of uncertainty there. Now, with all of that, behind us, the question mark that I was thinking is how tax reform is gonna affect me here towards the end of the year? And I mean, I would say for owners, there are a couple of big items out there that are common one is the new administration. So love Biden hate bite and love Trump hate Trump politics aside, the reality is we’re dealing with your tax reform. And what’s coming is potentially hiking capital gains tax, and there are talks in the air about 1031 exchanges, being limited to a capital gain of half a million. So not that this is the first time 1031 has been thrown out there and threatened but that is part of what we’re dealing with. There’s a lot of uncertainty and fear. So we’re helping owners decide to dissect and really downsize their risk while making sure they’re piecing together call it good decisions here come towards the end of the year.
Brett:
We couldn’t agree with you more here. Capital Gains Tax Solutions were on the channel on the front line in California. So we saw a lot of pain when it comes to maybe some capital gains tax and other taxes, to say the least. So let’s dive right into that. So what do you think?
Perhaps Biden’s proposing, by the way, is 20%? federal to be doubled to just about 40? About 39.6%. federal? And how do you think that might affect your sellers? And then on top of that, if they take away the 1031 exchange?
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