The pandemic has brought about many shifts across all real estate asset classes, but which of these changes are likely to last? Joining us again today to discuss this is Brian Adams of Excelsior Capital. We kick off our conversation by exploring the millennial demographic shifts and how this generation’s delayed family formation is driving housing trends.
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Brian alerts us to the fact that the exodus out of big cities to secondary ones has only been accelerated by COVID. We then learn about how Excelsior finds new markets. While secondary markets are not as large as their primary counterparts, that does not mean they are affordable. Brian shares some of the criteria that his team looks for to analyze whether a locale is viable for them to invest in. After this, Brian walks us through their top-down decision-making matrix, where they begin at the MSA level, ending with the submarket. This is a lot of work on the backend, but Excelsior’s data-centric focus sets them apart. We end the show by looking ahead, where Brian shares his thoughts on what the next six months have in store. Be sure to tune in today!
Key Points From This Episode:
- The effect that millennial family formation is having on the real estate market.
- How COVID is accelerating trends that were picking up pre-pandemic.
- Hear how Excelsior finds new markets in light of influx into secondary cities.
- A major lesson Brian has learned over his 10-year career — Be careful what you pay per square foot.
- Risks Brian has seen operators take with cap rates and red flags investors should look for.
- Why Brian pencils in the same cap rate upon exit that he does on entrance.
- Where Excelsior adds value on deals given their exit cap rate.
- Some of the resources that Brian and his team use to gather data from.
- Why Brian believes you need to be wary of exciting markets that are not landlord-friendly.
- Hear about Excelsior’s data matrix for analyzing whether markets are viable to invest in.
- Looking to the future — Where Brian thinks the next six months will take us.
- Learn how Brian likes to give back, professionally and personally.
[bctt tweet=”We only like to spend money on things that are going to result in higher NOI and more cash flow to the investors. — Brian Adams” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Brian Adams
Brian is a recovering attorney hailing from a family office background dedicated to providing investors with direct access to institutional alternative investments that can generate passive income in a tax-efficient manner. He pulls on his extensive experience in the legal, private equity and real estate industries to provide a broad market view of the entire alternative investment landscape to deliver strategic and reliable investment opportunities to his partners. Brian currently serves as Principal for Excelsior Capital in which he founded in 2019 and oversees acquisitions, operations and capital raising efforts. In addition, he frequently participates in speaking engagements focused on providing the real estate investment community with a real and honest outlook of the commercial real estate market so intelligent investment decisions can be made. He is a former practicing attorney, earning his J.D. from Suffolk University and his B.A. from Wesleyan University with honors.
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