Zach Alms’ Post

What is a ground lease? A long-term agreement that allows a tenant to build on and improve the leased property. These leases are often used in commercial real estate that can last up to 99 years and can be beneficial for both the tenant and the landowner: - Allows tenants to build on land that they would not otherwise purchase, which helps them avoid large upfront capital expenditure of buying land - Provides a steady income for the landowner while retaining ownership of property - Landlords avoid large expense of constructing a new building for tenants (i.e., build to suit)

It is always hard to know when is the best time to invest in real estate. I always suggest that the best time is now, because the most important thing isn't timing the market, but rather getting started.. Awesome blog post below by Paulo Aguilar, CAIA that goes into this in a bit more detail.

When it comes to CRE acquisitions or development, I'm curious to hear what other real estate professionals have done or would do going forward.

Check out my latest interview with the Surgeon Syndicate podcast!

The U.S. 5 Year Treasury has fluctuated from 4.1% all the way down to 3.46% in the last 10+ days alone. This creates a big impact on lending rates, causing both excitement and curiosity for what is to come in the near future.

Tangible, physical assets are the way to go!

Just closed on our first acquisition of the 507 Capital NNN Retail Fund! 𝗦𝗼𝗺𝗲 𝗺𝗮𝗶𝗻 𝗽𝗼𝗶𝗻𝘁𝘀 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗶𝘀 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁: - Long-term NNN leases to provide stability and predictability - Class A buildings with credit tenants - All multi-tenant buildings in the Midwest If you want to start investing in neighborhood retail strip centers, let's connect!

As part of a value-add strategy capital expenditures are often over-thought when in reality, simple, small changes can make all the difference. One recent example we did at 507 Capital was update a strip malls' signage and landscaping to make it more visible to traffic and have a more modern look.

What are parking ratios and why are they important at retail strip malls? As a general rule of thumb, a good parking ratio for a commercial property is between 5 and 10 spaces per 1,000 SF of leasable area. Depending on the tenant mix, the ratio can fluctuate significantly, but you always want to make sure there is sufficient parking for all the tenants and their customers. Insufficient parking at a strip mall is a major red flag when acquiring these buildings.

As of last month, I have now done more deals in the past 2 years with interest rates higher than 7% than the total amount of the deals I did when interest rates were below 5%... The crazy thing is that these recent deals have more upside and should make investors and myself more money than any of those low interest rate deals...