All Forum Posts by: John Drowns

My apologies to all.  I did not know this was going to Forum post.  I thought it would only be added to my profile.  Sorry for any inconvenience.

Investment Info:

Office Space commercial investment investment in Overland Park.

Purchase price: $36,780,000
Cash invested: $11,300,000

The overall CityPlace development includes up to 600,250 square feet of office, 1,382 multifamily units, 140 senior units, and up to 60,000 square feet of retail space located at the SWC of College Blvd. & Hwy-69.

www.blockllc.com/CityPlace/The...
https://www.linkedin.com/feed/...

How did you find this deal and how did you negotiate it?

This is a Block Real Estate Services, LLC development.

How did you finance this deal?

Approximate Terms: 70% LTV on Total Project Cost, 12 months IO, 5%, 300 month amortization.

How did you add value to the deal?

Assemblage and development; lease-up in progress.

What was the outcome?

Currently under development. 37.4% pre-leased for 10-years

Well stated @Alina Trigub

@Brad Johnson offered up some good information on the tax benefits of syndication:
https://www.biggerpockets.com/blog/2014-04-15-real-estate-syndication-compelling-tax-benefits

I began cultivating my passion and knowledge of the commercial real estate industry while working for an office/flex developer as a young man in Kansas City. I graduated from Arizona State and went to work underwriting CRE for a global firm in various capacities in Phoenix. While in Phoenix, I was also an investment sales associate with a multi-family group, specializing in communities 150 units and greater. Returning to KC, I managed the tenant improvements for approximately 2.1 million square feet of office property.

Presently I work in raising equity from private investors for the acquisition or development of CRE projects in the US that my company sources as a Sponsor, a larger concentration of which are in the Midwest.

A short list of my goals for joining BP are: to share my knowledge of commercial real estate & investment, thereof; become invested in my own CRE (actively working on this) & SF Residence projects; learn from those who have practical application in both of those areas; meet like-minded folks who enjoy celebrating the successes of others; gain insight from other syndicators on how to effectively reach and network with accredited investors in which to present opportunities; and, eventually network to form partnerships in my own private RE investments.

Per mention in numerous other threads, I am going to read Joe Fairless' "Best Ever Apartment Syndication Book", and welcome any advice that pertains to reaching accredited investors who are seeking passive investment in CRE via Sponsored opportunities. I found BP via Joe's site while working on building my contact network.

I am thrilled about this site and with how people truly pay it forward with the advice that is offered up.  Looking forward to sharing in building knowledge and relationships.

PS - I get an error when trying to access "• How to Effectively Use BiggerPockets to Build Your Business"

Welcome!  I am also new to the site. Under the "Education" tab do the 4-part "Free Course", "Webinars" and "Podcasts".  Lots of good info there.

Learning from your Sponsor(s) can be extremely valuable when it comes to fine-tuning your own strategy, should you want to take on a more active role.  Just remember your investment will be illiquid for a number of years in most cases.   

Asset class is something else to consider here.  On your own, $250k may not control the type of asset class (or size) that your $250k pooled with other investors will.  Depends on your strategy.  
A good Sponsor will also be able to place more favorable debt terms. The debt should/could also be structured so that it is non-recourse to investors, so that only the Sponsor is responsible for loan guarantees. This, coupled with the fact that they will (should) be invested in the deal themselves is additional incentive for the Sponsor to perform, keeping interest aligned. A Sponsor that has a CRE services platform will have a solid reputation with brokers, sellers, financial partners and managers in the markets in which they invest and they will leverage those relationships for efficiencies and deal sourcing. I think learning from your Sponsor(s) can be extremely valuable when it comes to fine-tuning your own strategy, should you want to take on a more active role. Being a true Sponsor is about educating as much as it is about building wealth. Trust and transparency is key.