All Forum Posts by: Drew Wahlgren

Originally posted by @Mike Nelson:

I was really suprised when Zillow got into this business.  It is really tough to build an efficient organization and find qualified people to execute this business plan, and execute at many different markets.  The carrying costs and vacancy costs are huge.  An example of a company which needs to stick to doing what they do best, their core.

 I know someone personally who was working there and involved in the iBuying operation, and he left 3-4 months ago and said it was CHAOS.  This was not a well oiled machine.  In hindsight, he heard from his old coworkers and they told him he left at a good time cause it got worse.

I think Zillow is more valuable now after having gotten rid of the iBuying operation.  I bought some stock when I saw it plummet to nearly $60  (from around $100/share) because I personally think you will see them bounce back over the next 3-6 months.

Something I read that I enjoyed: ""IBuying is dead, long live Zillow," wrote RBC Capital analyst Brad Erickson, who cut this price target to $100 from $145, but kept his outperform rating."  - I agree with this!  Zillow is a household name and I think they'll continue to be a tool that your average Joe/Jane uses at least.

Translating the recent update in Meetup.com to this thread:  The next meetup is tomorrow, 10/20/21 from 6:30-8:30pm at
Press Club
20 Yerba Buena Ln
San Francisco, CA

As all of us locals know, masks and proof of vax required in SF.

I will do my best to be there and look forward to meeting all of you!

Drew Wahlgren
MAG Capital Partners

@John Thedford I forgot to mention this, but if you are looking for help evaluating the risk around the tenant, our in-house credit team is offering due diligence services to those investing into the single-tenant space.  The team has institutional experience and would gather data, analyze financials, interview the management team of the tenant company, and then document and memorialize their findings into an institutional grade credit memo.   This credit memo can be helpful when selling the property as well. 

Just one tool to keep at your disposal if you need it!

Yield has certainly compressed in industrial over the last 18 months, but there are opportunities out there that we are finding. You'll either trade some yield for a longer term lease with a stronger tenant, or build in more reserves for a weaker tenant and shorter term lease.  As previously mentioned, you could have 3-6 months of lease up time if you have a vacant asset like this, with possible TI's to pay for.  However, if demand continues to outpace development in coming years (which I think it will), you'll be in a great position to negotiate.  Anecdotal story:  I just walked an industrial property that we are in contract for (single tenant, NNN lease). The tenant is dying for space, and some availability came up in the form of a sublease nearby, and all 130K SF were nabbed up in a few separate chunks in the first week.  I'm seeing this kind of demand in all kinds of markets (this particular one was more tertiary).  

I'm assuming you have other real estate exposure or maybe real estate is a smaller part of your portfolio.  If this is a large part of your portfolio or most of your real estate, I personally think that's a large concentration of risk.  If you want to go more passive, you may consider taking the cap gains hit and pushing funds into numerous syndications.  Just a thought.  If you want to 1031 exchange into active RE positions, you might be able to find a few smaller single tenant NNN leased properties to buy to diversify a bit, maybe in the QSR space.  

Drew Wahlgren
MAG Capital Partners

@JB Klein @Jamie Carr - I sent you both a connection request with a message attached.

@Jamie Carr - I'd try posting on this site that you're looking for a ticket!  There are always people who can't make it.

Originally posted by @Paul Meyer:

Hi Drew - I would definitely like to meetup at the conference. Prior to the pandemic I was based in SF and still spend a lot of time out there. I work in private equity and own some smaller multi-fam properties in the Midwest. I am definitely interested in investing in NNN.

I'm flying in from the East Bay where I live here but am also seriously considering a move to TX (DFW most likely) so I'll have to hear your experience with that.  Our firm has also branched out into OpCo investments because of how closely we work with PE groups, so it sounds like we'll have plenty to talk about.  I'll reach out directly to you and share my contact info - looking forward to it!

@Cole Bigbee @Joel Owens - I sent you both connection requests with a note and calendar schedule link, would love to chat sometime and hear about what you do!

Hey BP community and BPCON21 attendees!  Wanted to see if anyone would like to do lunch together on Monday or Tuesday during the 12:15-1:30 break in a small group setting.  I've been investing in STNL industrial real estate with an investment firm and would love to connect/meet with investors who are interested in getting involved passively in that space or investors who are already actively investing in industrial real estate to compare notes/exchange war stories/nerd out on real estate.

Ideally would be a group of 2-4 people including myself.  Looking forward to seeing everyone there!

Drew Wahlgren

MAG Capital Partners

I see this post is old, did you build it?  I'm currently working on getting things lined up to start in my backyard here in San Ramon.  Can I ask what the cost and size unit you built was?