Family Offices: Do Your Due Diligence

By Stan Sonenshine in Atlanta Real Estate Investment

4 days ago

4 days ago 0 0 14

I recently read the National Real Estate Investor article “Survey Shows Family Offices Falling Short on Due Diligence for CRE Deals.” This article is 100% on point. Investors not familiar with the nuances of private real estate investments do not consider the elevated risks often posed by real estate, which result from its illiquidity, debt, lack of transparency, and reliance on a sponsor. Family-office professional DJ Van Keuren’s questions that family offices should ask during due diligence (modified below from the article) hit the mark. What is the sponsor’s track record? How long has the sponsor been in business? How much of its own money is the sponsor investing in the deal? What are some examples of deals that went south? How did you handle those situations? What is the market demand for this type of property? How many similar projects are in the local development pipeline? Has the sponsor run the numbers

Atlanta Office Market: Hot or Not?

By Stan Sonenshine in Atlanta Office Market

1 week ago

1 week ago 0 0 39

Think back to the office market in 1985. People were saying, “Nothing can go wrong. People are still coming.” Those same people were soon singing the blues because surprise, surprise, something went wrong. Is Atlanta’s office market as hot as it seems? BizNow’s recent article The Fastest-Growing Office Rents in the U.S. Are in Atlanta touts Atlanta’s office market success, but, in my opinion, fails to give a full picture. I see it more as a tale of two cities—the institutional office market and the local office market. Midtown + Buckhead: Hot Atlanta Office Markets Media likes to focus on the hot markets, like Midtown and Buckhead, and rightfully so, according to these stats: “Rents at premier office spaces in Midtown and Buckhead have risen 14.2% since last year, breaking the $50/SF ceiling for the first time.” Plus, 2.2M SF of new prime office space is underway with “Selig Enterprises

In the Development Market Phase of the real estate cycle

Development Market Phase: How Long Will It Last?

By Stan Sonenshine in Real Estate Cycle Phases, Real Estate Development, Real Estate Investment Strategies

2 months ago

2 months ago 0 0 109

The business cycle is “long in the tooth,” and the real estate cycle is also very, very mature. Last year, in Timing the Real Estate Cycle, I focused on real estate cycle phases, which included Recession, Distressed Selling, Value Creation (Stage 1 + Stage 2), Mature Investment Market, Development Market and Overdevelopment + Bust. Right now, we are in the Development Market phase. Here’s how I previously described it; see if it rings true. Rents and values are up. Vacancies are down. New construction accelerates. Investors…are flush with cash. Lenders are aggressive. Values of existing properties are peaking. There is simply more capital chasing deals than there are opportunities. The downside risk is increasing. The “nothing can go wrong” mentality is taking over. New project announcements are appearing almost daily. Development Market Phase: Alive and Well Here’s what I see now: Transaction volume on the sale/investment side of business has

Mentoring as an Investment in Our Young People and the Future

Mentoring: An Investment in the Future

By Stan Sonenshine in Uncategorized

2 months ago

2 months ago 0 1 173

My Dad was tough around the edges, but he was a kind and generous man. Whether it was family, friends, acquaintances or strangers in need, Dad always tried to help them get back on their feet. While I respected him as a businessman, my greatest admiration was due to his willingness to help others. A Legacy of Giving One way I choose to continue my father’s legacy of giving is by mentoring students and early career adults. A few years back, I wrote a series on mentoring. The first blog of the series offered industry professionals mentoring tips. The second blog advised how mentors can help young professionals in the CRE industry. And the final blog examined mentoring benefits. I am a mentoring advocate, whether you participate in a formal program, act informally as an advisor or assist a young colleague. I currently advise ten individuals. Formal Mentoring I participate

Crowdfunding Becomes More Popular, But Skeptics Remain

Crowdfunding: A Viable Option?

By Stan Sonenshine in Real Estate Investing, Real Estate Investment Strategies

3 months ago

3 months ago 0 0 125

National Real Estate Investor recently published an article titled Real Estate Crowdfunding Firms Push Further into the Mainstream, in which the writer argues that although first questioned, crowdfunding continues to gain a base of active sponsors and investors. One sponsor, using the CrowdStreet platform, says “it serves as a consistent, recurring source of equity, as well as a capital source that is accessible for smaller dollar amounts, under $3 million.” Crowdfunding: Who’s in the Crowd? Here’s what I think about crowdfunding: I like to enter a deal with the fewest, financially-qualified partners as possible. Either directly and indirectly having a large number of unknown partners pretty much scares me. I assume this approach works well when the market is good and properties are performing well. But I am always thinking ahead. What happens in a market slowdown, and a property funded by crowdfunding gets into trouble? The results could be very

Many Co-Working and Incubator Models Exist

The Sharing Economy: Co-Working and Incubator Models

By Stan Sonenshine in Atlanta Real Estate Development, Co-working office space, WeWork

5 months ago

5 months ago 0 0 264

I recently asked the question, Does WeWork Work? And answered the question with a “We’ll see…” But there’s other co-working/incubator models out there worthy of discussion. Co-Working and Incubator Models On a recent panel at GSU’s Views From the Top was a Roam Innovative Workspace representative. Like WeWork, Roam is an alternative office model, but currently boasts only five locations. There are also Incubator tech business models out there. One such model is the Atlanta Tech Village. One model is not necessarily better than the other, but what is certain is they all disrupt the office market. Quick Thoughts on WeWork I dove deep into WeWork previously and questioned how the concept can compete with traditional landlords, REGUS and CBRE’s Hana concept, which can easily adapt to the changing market. Essentially, WeWork acts as a landlord, but offers more flexible leasing options. It is very much a real estate-based model, with

CBRE Launches Flex Office Space Initiative to Compete with WeWork

CBRE’s Hana: A Threat to WeWork?

By Stan Sonenshine in Co-working office space, WeWork

5 months ago

5 months ago 0 0 216

The Empire Strikes Back The Wall Street Journal’s recent article “CBRE Launches New Co-Working Business, Taking on WeWork” offers proof to points made in my recent blog, “The Sharing Economy: Does WeWork Work?” Here’s what I said: “[WeWork] does not have a monopoly on the concept. Ordinary landlords can easily replicate the model.” And that’s just what CBRE plans to do with its new offering, Hana. Hana’s main offering, Hana Team, offers professional teams (8 – 300+ people) customizable space with desirable amenities. Each Hana facility will also contain Hana Meet, on-demand meeting rooms, and Hana Share, shared desks and coworking space. In Stan’s Opinion There’s no doubt WeWork has changed the office leasing paradigm. But I do doubt the company will survive in the long run. Their concept can be easily replicated, and existing landlords control what happens in their buildings. In addition, companies like Regus have adapted their flex

Atlanta Hosts Super Bowl LIII Like A Champ

Atlanta’s Super Bowl Gets a Gold Star

By Stan Sonenshine in Atlanta Super Bowl 2019

5 months ago

5 months ago 0 0 196

I had never before been to a Super Bowl. And it wasn’t until I walked through the gates on Feb 3rd that I truly believed I was going to the game. I had planned an evening of whiskey, cheese and football on my couch when offered an out-of-the-blue invite from a friend. But when I learned how he secured his tickets, I was skeptical, but darn if we didn’t go. So Much Happening Anyone who watched the game on TV and thought it was boring was (obviously) just not there—so much happened in the stadium. There were no idle breaks on the field; huge TV screens showed commercials and previews and featured NFL stars and awards. Concerts and pyrotechnics constantly entertained. The Peach Bowl I recently attended was a game. This Super Bowl was an experience. Super Bowl: The Experience The actual game is only part of the entertainment package.

Getting Started in Real Estate Investing: It Ain’t Easy

By Stan Sonenshine in Real Estate Investing, Real Estate Investment Strategies

6 months ago

6 months ago 0 0 333

Knowledge, Network + Money A recent article in The Washington Post offered advice on launching into the world of real estate investing; the author says, “In general…there are three things that every real estate investor needs no matter what: education and knowledge, a good network, and money. But not necessarily your own money.” Stan’s Viewpoint Everything the author says is true except it isn’t that easy. Learning markets, finding good deals, and hooking up with the right professionals and investors takes a lot of time, persistence and patience. Like any startup, the first few deals will likely be less successful due to lack of experience and inability to foresee problems. In addition, these deals will likely require one’s own money or that of close friends and family. New investors are also likely to underestimate the cost of ownership and the amount of time and effort to manage. Very small deals don’t

Family Offices: Do Your Due Diligence

Atlanta Office Market: Hot or Not?

Development Market Phase: How Long Will It Last?

Mentoring: An Investment in the Future

Crowdfunding: A Viable Option?

The Sharing Economy: Co-Working and Incubator Models

CBRE’s Hana: A Threat to WeWork?

Atlanta’s Super Bowl Gets a Gold Star

Getting Started in Real Estate Investing: It Ain’t Easy

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