All Forum Posts by: Scott Lieberg

We are aggregating several parcels for a mid-rise multi use project. All of the parcels, including the parcel with Mobile home spaces (occupied) are being analyzed against the land cost per door of the finished project. If your project returns pencil out against land and development costs, move ahead. If you are not developing the parcel but "land banking" it, remember that for you as a future Seller, your buyer will use that same analysis on you. The land gets paid last. 

I probably would not use a back of the napkin approach, but hey, it works for some. As I said in a prior thread, this may be a good deal if properly underwritten. Good fortune.

Larry and Eric, 

Thanks for your insights regarding Student Housing Covid impacts. We are looking at UTA, A&M, TSU - San Antonio, OU - Norman. All investor-grade assets. Thanks for verifying the return to pre-Covid lease-up levels. 

Scott Lieberg, 

TIC Capital, LLC

What is the value of the cleared land? What is the highest and best use? Can you afford to carry land until you can close on it? Could be a very smart play if unwritten correctly.

Recently we have been pursuing Student Housing plays in the shadows of major universities - 400 to 600 beds - for our Equity Co-GPs. Straight student housing as opposed to market MF housing, student occupied. Is anyone else engaged in this sector? Any ground up experience? What got you thru Covid campus shutdowns? Let me know.

I am seeing rate compression in white hot markets. I have been looking at a lot of class A assets in Austin / San Antonio with 3- 4% cap rates. Investor MF, 55+, and student housing plays. Class B value-add plays can be juiced up to attractive yields - 15 -17% IRRs if mark to market and updating classic units, debt quotes 2-3 years, 60 -65% levered, that include 100% of reno costs. As a Sponsor, key is to have boots on the ground to act, model, and execute.

I read a report from NIC that occupancy for Independent Living, Assisted Living, and Nursing Care catagories within Senior Housing are all down post Covid. We are looking at Sponsoring some Assisted Living developments in select aging markets. Aside from the obvious aging demographic, will post Vax complications create a resurgence for need. I would like to hear from anyone with current experience in this Market. Thank you.

Jim and Evan,

Thanks for your comments. Our team is currently using an Excel spread sheet to build our Sponsor models. I have screened $230,000,000 (10 projects ) in the last 2 weeks. I will look at Yardi and MRI. Looking for better methods to meet pressing offer due dates. Again thanks for the feedback.

Scott Lieberg

TICCapital.com

Is anyone using Argus software to model your potential acquisitions? Or do you use an alternative screening product for analysing weighted average lease terms, value add plays, and other data points for your sponsor packages. Most of the major commercial brokers (CBRE, JLL, Cush Wake, and others) are using Argus or the equivalent. What are the pros, cons, and alternatives to Argus? Thanks in advance for your feedback.

Joel Owens has it right. 

Why put you self and money at risk?

Deals are like trains, there will be another one along. Good luck.

Get the Phase One in your name and then read it. If you don't understand Brownfield properties, Benzine contamination, quarterly soils testing - nobody does - hire a competent environmental firm. Don't rely on insurance. If you can't be satisfied by your experts, pass on the deal. Deals are like trains, there will be another one along.

For the nasty ones check your county, using a FOIA request, and the State Department of Environmental Quality. Ingnoring Environmental can leave you holding the bag on a very costly mistake. As a seller, disclose, disclose, disclose. provide the reports and then require you buyer to have professional review. Some times a public entity as a seller (following a condemnation) in the chain of title can be a tip-off. 

Don't panic - just don't cut corners if your Phase One indicates your cheap property is being handed to you at a dollar down and a dollar a week for a reason. Good luck.