Mastering Real Estate Success with Stoic Equity: 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.

 

 

    

 

Dan Breslin: All right, Jeremy Friedman. Welcome to the REI Diamond show. How are you doing today?

Jeremy Friedman: Hey, I’m doing great, Dan. Thanks for having me. Looking forward to it.

Dan: For sure. So you’re the co founder of Stoic Equity Partners. Somewhere about to hit the hundred million dollar assets under management mark with a million square feet. So you guys have built some momentum from the research I’ve done before the episode. There’s a little bit of self storage. It looks like it’s kind of hanging on, maybe got bought a little bit in the excitement and the height. I own a lot of storage myself, and we’re certainly not doubling down on that strategy at the moment. We’re like doubling down on our management of the current assets and we’re going to like make those things make money.

Jeremy: We’re in the same place with our storage.

Dan: Yeah. If the right deal comes along, yeah, sure we would do it. But that’s probably not for me, the main hunt and then you’re into the multi tenant industrial space and that’s probably going to be the bulk of our conversation here today. Jeremy, to kind of fill in maybe the holes, maybe you want to talk about the progression of your career in real estate with.. I’ve given you a little bit of an introduction there.

 

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Resources mentioned in this episode:

https://www.stoicep.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

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.

  • Relationship Building (40:00): The significance of relationships with brokers, sellers, leasing agents, tenants, and equity partners in driving business growth.

  • Transparency and Trust (43:00): The value of following through on promises and maintaining transparency in relationships to build trust and reliability.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.