A little about me:
- Over 10 years development experience at a small shop.
- I have done everything from acquisitions, to financing, leasing, entitlements, construction and dispositions.
- We have done everything from a 2,500 single tenant Starbucks to a 500,000 sf power center.
A loan didn’t close today because FedEx failed to pickup the docs yesterday. Why in today’s age do banks still need originals of loan docs before closing? Is anybody working on a solution to this?
😡 When you see a building you offered $2.2MM for sold for $1.8MM. Called the broker and asked what happened. Not happy with the answer. Very skeptical. 🧐
Killed a deal today after discovering the site did not have easily accessible water. Decided it was better to lose $65,000 in earnest money. One of the risks in development.
One of my favorite projects we did. We took a former Home Depot box, cut back the building, put PetSmart and Marshall’s in then made 4 pads up front. Before and after site plan. All on 3.5 acres. We sold the 13,600 STNL to lower our basis, but still hold the rest for cash flow.
Construction loan closed today. Single tenant BTS with 2 other pads as collateral to get 100% LTC.
- $2,930,000
- 65% LTV
- 18 Months I/O
- 5 Year Perm Option (22 yr/am)
- SOFR + 2.85%
- 0.50% Origination Fee
- No Personal Guarantee
- No Prepayment Penalty
- Texas Bank
Overdue Tweet:
My first Twitter (X) transaction has closed.
A follower reached out, we met at Vegas ICSC. Soon after he had a 1031 buyer with a need. We had a car wash property we were willing to sell that we had not marketed.
27 days from contract execution to close. 🙌🏼
Hard to post this week. 5 loan closings scheduled in the next 45 days.
$6.6MM - Construction Loan RI
$6.3MM - Construction Loan TX
$4.0MM - Land Loan TX
$2.7MM - Loan Extension TX
$2.5MM - Land Loan TX
5 Different Lenders, all repeats.
4 Banks
1 Private
Questioning a sixth.
For my apartment followers. This is a 208 unit Section 8 property we purchased and rehabbed in 2011. We refinanced in 2020 under HUD 223(f). Fixed at 2.43% for 35 years. It would be nice if we could still do that today.
Tenants we have active STNL deals with:
- AutoZone
- Bojangles
- Chick-fil-A
- CVS
- Dutch Bros Coffee
- Express Oil
- Heartland Dental
- McDonald’s
- Mister Car Wash
- Salad and Go
- Sherwin Williams
Lease, permitting or under construction.
Mix of BTS and GL.
#retwit
#cre
Just had a first. Attorney told me they would not let me talk to the title company. The sad thing. He’s my attorney. I told him we would not be using him next time.
Just received LOI.
5.25% all cash offer on a $9MM single tenant retail property in Houston. Buyer is willing to close before rent commencement.
Not expected in todays market.
This was not marketed and few knew. Always trust those who have performed for you time after time.
Costar rep calls. I haven’t priced it in years didn’t make sense for us. Might make some sense now. I say sure what’s the current pricing. Won’t give it to me without a demo. I say I’ve done the demo just give me a price. He won’t give me a price. He’s called back 3x and I ask is
🚨New Amendment Record 🚨
We just executed the 20th amendment to a PSA. I thought it was a typo in my email at first. We are the patient seller on this transaction.
Loan 1 of 5 Cleared to Close
$6,310,000 Retail Construction Loan
Texas Regional Bank
Charges Summary:
Title Co $31,300
Origination Fee $31,550
Loan Fees $2,355
Appraisal $3,800
Lender Legal $3,900
Borrower Legal $6,765
Total $79,670
For those curios. Can share more in DM’s.
Appraisal bids today for STNL project in DFW.
A: $2,550 - 14 business days
B: $2,750 - 9 business days
C: $3,050 - 5 business days
One year ago similar project best price was $4,600 and 4 week turnaround. How times have changed.
@gvh41
Our condo association requires the dryer vents to be cleaned every year. I think per insurance. That’s 160 units guaranteed every year from one complex.
You want to build ground up retail in Austin? Water/meter fees for one multi-tenant building and 3 pad sites $193,000! Pad 2 is a car wash but the others are not heavy water users.
I’m genuinely curious, can someone explain how a parking lot is asking $12.8MM. This is New Jersey. Are parking lots in industrial parks trading for this amount?
It has been a busy 3 weeks. 4 single tenant retail deals sold in Texas:
1. $9,030,000 @ 5.00% 20 Year BTS
2. $7,775,000 @ 5.10% 20 Year BTS
3. $3,600,000 @ 5.30% 15 Year GL
4. $3,525,000 @ 5.35% 15 Year GL
These likely would have been sub 5 a year ago but we are happy.
#1031
I feel like this should be bigger news. Anybody feeling any effects from the Fidelity hack? Buyer just asked us for title review extension and I wouldn’t have known if they didn’t mention the hack. Hard not to give it to them.
This is 24 acres we purchased in November 2022. 4 of the 8 pads are spoken for. The interesting part of this deal is the water plant we have to build on site because no water is available nearby. There is also a 4 acre detention pond in back you can’t see. Big site work number.
With less distractions today I took some time to review a 31 page ground lease with a potential car wash tenant of ours. It was refreshing to read a reasonable tenant drafted lease. Should only be some minor comments and hopefully a quick execution. 👇🏼
My favorite takeaway was
You want to be a developer story
#45
.
Email at 3:08 today for two checks (can’t wire) that have to be priority overnighted to keep our project on track.
$128,659.70
$19,919.10
Lesson: you always need working capital at a moments notice.
Thank you MUD! Love Austin, Texas.
Approved a survey proposal today from a Twitter connection for a 29 acre site we put under contract in Houston. Thanks for reaching out
@JHoebelheinrich
This platform continues to amaze me.
#retwit
These Costar calls need to stop. No I don’t have time to explain how I can pay you to help me. I give them credit they do a good job changing where they call from everytime and making it look legitimate. Retwit says answer every call so I do.
My
@ICSC
is complete. I got to meet the incredible
@realEstateTrent
today and discuss a deal. All possible because of
#retwit
Do not underestimate this platform.
@Twitter
is amazing. 🙌🏼
Another permitting timeline:
Travis County, TX (Austin ETJ)
By right retail building and 3 pads.
Submitted for permits in June 2021.
Just received.
If you are not budgeting 12-18+ months for permitting in Austin you will be surprised.
We lost 2 tenants because of this.
Land Loan Options $4MM Purchase
A) Bank
$2MM
SOFR + 300 Floating (7.85% Today)
18 Months I/O
1% Fee
B) Private
$2.5MM
12% Fixed
24 Months I/O
3% Fees
Would you pick A or B?
#retwit
#cre
#lending
I deal with a lot of regional and mid-size banks. None have stopped lending and none seem concerned after conversations over the past week. Limited office/hospitality exposure. No crypto or tech exposure. We’ll see where this week goes. 🤷🏻♂️
One of my highlights at ICSC this year was having
@TheCREStudent
shadow me for a couple hours Tuesday morning. He is the real deal and gave me hope for the future of our industry. I don’t know many students going in to Junior year of college already having 2 internships lined up.
Developing in Austin, Texas keeps getting more fun. Four, yes four parties now need to inspect one fire line.
1. Travis County Fire Marshals Office
2. City of Austin Development Services
3. Austin Fire Department
4. Travis County ESD 11
What could go wrong?
@atxREpodcast
Looking back at a Starbucks build to suit lease we did in Houston in 2020. Rent was $116,000 and we built the 2,256 sf proto at the time. We could never make that work today
@NNNIncome
Haven’t updated this STNL build in a while. Roof is on, waterproofing complete, mechanical and electrical rough-ins under way along with metal stud framing.
Permitting story:
Hays County, TX (Outside Austin)
Property Purchased 2016
Two successful deals done with pharmacy and coffee user.
3rd lease executed in April 2019 with QSR.
We just received our permit today! April 2023. Yes 4 years and 9 lease amendments later. ⬇️
Back from break inbox is flooded with:
- Price Reduction
- New Price Reduction
- OFF-MARKET (Ok)
- Irreplaceable
- MOTIVATED SELLER
- PRICE IMPROVEMENT!
- PRICED TO SELL
- Register to Bid 🤦🏻♂️
- New Pricing
- Recently Reduced
- Call for Offers
- Generational Pride of Ownership
-
Another insane Austin permitting timeline. Submitted May of 2021, received January 2024. This is just for a driveway and to bring utilities to the site. Nothing out of the ordinary.
I will be at
@ICSC
Las Vegas next month if anyone wants to meet let me know in the DM’s.
I will also be attending
@TeamHerrold
#retwit
Happy Hour 5/20 as well.
Just received an apartment listing. First paragraphs says 99% occupied. Bullet point says 97% occupied. Always amazing to me how many blasts have simple errors like this.
Texas passed a 30 day shot gun clock law in 2019 for approving plats and site plans. Unfortunately we have not seen this help speed up timelines on any approvals. You’ll just get a disapprove until they figure out what they want you to change. Great concept, bad gov’t execution.
@TripleNetInvest
I have seen them open several new units with more under construction, but they don’t seem to have that same buzz unless I don’t see it.
The traditional banks are lending it has just gotten painfully slow. If anyone has some lender options that are willing to engage on new construction projects in Texas with tenants in place let me know. Speed is the main factor.