When the pandemic hit last year, a lot of industries struggled to cope up because of the lockdowns. Among those that struggle is the retail industry and at the same time the retail real estate. Now, there are doubts if this particular sector can ever recover from the crisis.
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In this episode, we speak to retail real estate investor Vick Mehta of Indvestia Capital. Vick emphasizes that retail real estate is not dead. He says at the moment, it has changed and shifted. Despite the pandemic, Vick says that retail real estate spaces are still essential. He adds the success of your tenants will help determine the value of the asset, so you need to make sure the property is the best one for them. Tune in now and find out why investing in retail real estate is still a good option!
Key Points From This Episode:
- Vick talks about his background and his focus on retail real estate.
- Vick says retail real estate is not dead but instead it has shifted.
- How does location account for the value of retail space?
- Vick walks us through the process of determining the value of the retail space.
- The factors that will help in the success of your tenants will help determine the value of the asset
- What is the ideal piece of retail space that has the least amount of risk?
- Vick elaborates why there’s a value in vacancy in retail real estate.
- Vick shares the key to get through the challenges brought by the pandemic.
- How Vick improved his retail real estate?
- What is the type of returns investors of retail real estate can expect?
- The deal structure of retail versus multifamily opportunity.
- Vick talks about the typical hold period for a retail real estate investment.
- The hardest part on going from being a limited partner (LP) to being a general partner (GP)
- Vick shares where his investments in retail real estate are.
- What would Vick do in his first deal differently now that he knew what he knows now?
- How does Vick prepare for a downturn?
- Vick’s prediction in the real estate market over the next six to twelve months.
- The daily habits that helped Vick achieve success.
- Vick’s best source for meeting new investors right now and the number one thing that contributed to his success.
- How does Vick like to give back?
“There’s a lot of negativity around retail. There’s a lot of concern about what’s gonna happen in this sector. And, you know, I’m here to say that it’s not dead.”
“There’s always gonna be internet-resilient tenants or pandemic-resilient tenants that require space.”
“The landscape of the tenants might change, the type of users might change, but that building is gonna stay there and that building is gonna continue to be successful.”
“When we have the vacancies, I’m making sure that we’re budgeting the proper amount of money to backfill that space.”
Links Mentioned in Today’s Episode:
About Vick Mehta
Vick Mehta is the founder of Indvestia Capital based in Downers Grove, Illinois. Vick’s career started as a Retail District Manager for Verizon Wireless. Somewhere along the way he caught the entrepreneurial bug and has been a franchisee of 4 different national retail brands. He parlayed this experience into becoming an investor in commercial real estate focused primarily on the retail sector. In 2020, he founded Indvestia Capital, a syndication group investing in retail opportunities. In the midst of the pandemic, Vick saw an opportunity while others were bearish on the sector. Since its inception, Indvestia has closed on 3 properties with a total value of $7m and they are under contract for another one which will push them over the $10-million mark for assets.
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