Episode 260: Mastering Real Estate Success with Stoic Equity: Building Strong Relationships & Winning Deals with Jeremy Friedman

The REI Diamonds Show-Real Estate Investment Podcast

Episode 260: Building Strong Relationships & Winning Deals with Jeremy Friedman

Guest: Jeremy Friedman is the co-founder of Stoic Equity Partners, a commercial real estate firm focused on multi-tenant industrial properties. With Stoic's portfolio nearing $100 million in assets under management and spanning over one million square feet, Jeremy shares insights from his journey transitioning from an institutional bond broker to a leading real estate investor.
Big Idea: In this episode, Jeremy delves into the advantages of investing in multi-tenant industrial properties, particularly those offering flexibility in office and warehouse space. He discusses the strategic shift from self-storage to industrial real estate, driven by supply constraints and rising demand, and how adaptive reuse projects have fueled Stoic Equity Partners' growth. Jeremy underscores the significance of value-add opportunities, demonstrating how his team has leveraged market dynamics with a focus on tenant flexibility, revolving leases, and long-term profitability. He explores the complexities of managing flex space properties, including maximizing returns for both general and limited partners, balancing investor splits, preferred returns, and fixed-rate debt, while addressing market fluctuations, interest rates, and key risk factors that investors should consider.
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Resources mentioned in this episode:
https://www.stoicep.com

View the Episode Description & Transcript Here:
https://reidiamonds.com/mastering-real-estate-success-with-stoic-equity-building-strong-relationships-winning-deals-with-jeremy-friedman/
Jeremy Friedman & I Discuss Mastering Real Estate Success with Stoic Equity:
• Launching Stoic Equity Partners (3:30): How the firm was born during the pandemic, starting with adaptive reuse of an old grocery store into a self-storage facility.

• Cash Flow and Tenant Diversity (8:10): The benefits of managing properties with multiple tenants and how this strategy enhances cash flow and lease flexibility.

• Tenant Profile (13:10): What to look for in ideal tenants, highlighting service providers like HVAC contractors, parts houses, last-mile logistics companies, and pest control firms.

• Investor Returns and Splits (21:24): Jeremy explains the cash-on-cash returns and the IRR targeted for investors. He breaks down the preferred return and the desired profit split.

• National vs. Local Tenants Risk (31:03): He examines how national tenants may close locations during economic downturns, while smaller local tenants may provide more stability, as they often prioritize survival.