S1E7: Behind the Scenes on Institutional Real Estate Investing with Matt Chapman

11/06/2019 29 min Temporada 1 Episodio 7
S1E7: Behind the Scenes on Institutional Real Estate Investing with Matt Chapman

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Episode Synopsis

Matthew Chapman, Director of Investments (West Region) at Link Industrial Properties and Senior Vice President at Talos Capital talks with his brother and host John Chapman of the John Chapman Show about investing in industrial real estate. Learn from Matthew about private equity funds, asset allocation, off-market deals, and how changes in retail buying patterns are affecting commercial real estate. Episode Highlights:          What is Matthew Chapman’s job like in industrial real estate and sovereign wealth funds?          How do private equity funds work?          What is a minimum investment amount that Matthew works with?          Does he get an idea of what the asset allocation amount is in advance of investments?          What does Matthew Chapman look for on behalf of clients when seeking out assets?          Are there sites like Zillow that apply to industrial real estate?          What percentage of his business has come from a personal contact from a broker?         The majority of the deals that Matthew Chapman has cleared have been  off-market deals.          What kinds of changes are occurring within retail real estate? 3 Key Points:     Usually, big investment groups try to find the appropriate risk and return equilibrium for their underlying shareholders as they take into account their future obligations.     Investment execution requires identifying and completing the acquisition and the operation, cash flow generation, and creating some appreciation out of the asset.     For real estate allocation, Matthew considers location, cost to replace the asset, and what is the value of the income stream. Tweetable Quotes:      “For an institution investor, they are interested in deploying capital in an efficient manner, and that means they are cognizant of the capital cost of the equity, the friction to deploy the capital, inclusive of human capital .”– Matthew Chapman      “The way that a lot of downtown office buildings price is that they don’t actually price with a huge amount of income as a portion of the total investment.’ – Matthew Chapman      “There is a huge amount of travel involved just to make sure you can go out and you can understand the value of how the real estate actually functions, as far as the tenants and within the marketplace in which it resides.” – Matthew Chapman Resources Mentioned: Linkedin: John Chapman Linkedin: Matthew Chapman See omnystudio.com/listener for privacy information.