Enjoy this discuss where Jonathan talk with Spencer Strong, of Jupiter Equity Partners, about investing in cash-flowing Junior and Big Box Retail. In this episode, we discuss sourcing deals, raising capital, capital expense nightmares, and the opportunity that retail investing provides.
Spencer Strong brings a wealth of experience in real estate, directly involved in over $150M of acquisitions and dispositions across 10 states and retains ownership in over 750,000 square feet of commercial properties. With a B.S. in Finance and a real estate emphasis from BYU’s Marriott School of Business, He is a partner on multiple shopping centers as well as a large industrial park that will be a future redevelopment.
Spencer on Linked In:
https://www.linkedin.com/in/spencer-strong/
Takeaways
- Transitioning from brokerage to investing allows for more control and decision-making power.
- Commercial brokers may not invest in real estate due to competition with clients and a focus on transactional deals rather than long-term management.
- Jupiter Equity Partners focuses on stable big box retail properties with credit tenants and long-term leases.
- Underwriting deals conservatively and accounting for significant capex items is crucial for successful investments.
- Building strong investor relationships through transparency and communication is key to raising capital.
- Cold calling property owners and targeting off-market deals can lead to finding opportunities.
- The book ‘The Go Giver’ by Bob Burg and John David Mann emphasizes the importance of giving back and focusing on providing value to others.
Chapters
00:00
Introduction
01:00
Spencer’s Background in Real Estate
03:33
Transitioning from Brokerage to Investing
05:34
Why Commercial Brokers Don’t Invest in Real Estate
08:28
Jupiter Equity Partners’ Investment Strategy
11:13
Focus on Big Box Retail
13:49
Business Plan for Big Box Retail Assets
16:06
Underwriting and CapEx Strategy
20:53
Dealing with Unexpected CapEx Expenses
22:20
Managing Investor Relations
23:30
Case Study: Milwaukee Retail Property
26:07
Out Parcel Development and Exit Strategy
27:25
Debt Situation and Interest Rates
28:13
Jupiter Equity Partners’ Team Composition
30:40
Keys to Scaling the Business
34:10
Rapid Fire Lightning Round
38:00
Connecting with Spencer and Jupiter Equity Partners
38:46
Final Thoughts
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