Daniel Abrahams | Ultra Urban Class B Industrial

The case for ultra urban, small bay industrial is simple and powerful ✅ Extreme revenue diversification ✅ Sticky tenants ✅ Predictable expenses ✅ No crazy TI chats ✅ Simple leases ✅ Lots and lots of user types ✅ Not building this stuff anymore ✅ Arms race to be as close as possible to the end customer

@AdamB1438 @Block_And_Co_RE shkoyach 🕺

Closed on this one today Acquisition #3 is IN THE BOOKS DM if you want to get updates about outstanding flex, light industrial and net lease investments from @Block_And_Co_RE

@mpaballer6 love this.. but whisper it quietly…. padel 🚀 > pickleball 🥒

Able to watch & participate w/ some of the best PB players in the world (see photobomb) 1)There is always someone better then u & its ok 2)Learning IS improving 3)More I learn, more I can continue to be better for my clients 4)Practice gets you better! 5)Consistency is a virtue

@hitsamty Oy. The intersection of real estate and Yiddish lingo here is a little creepy but fantastic 👏

You have a guy who's like the New York frum CRE world's Kevin Bacon. He can make it all happen for you: perform a closing, find you JV equity (or heimish pref), even help temporarily pad your bank account to pass muster with lenders. It's a GREAT gig. Until it becomes the epicenter of what's shaping up to be New York's largest-ever real estate escrow fraud. Our video snapshot of Mark Nussbaum

@DanielHerrold if you can measure it you can manage it 🕺

If you don’t understand the metrics needed to achieve your goal, you’re just throwing darts blindfolded. For example, if you want to do $1M in gross commissions: Take $1M and divide it by your historical average commission per deal. Now you know how many deals you need to close. Next question: How many listings do you need to close that many deals? You don’t close every listing. Do you know your listing-to-close conversion rate? Once you know how many listings you need, ask this: How many BOVs do you need to generate to secure that number of listings? That requires knowing your BOV-to-listing conversion rate. And before a BOV ever happens: How many actual owner conversations do you need? Not outbound calls. Real conversations. Then work one step further back. How many phone calls does it take to reach that many owners? Tracking these metrics matters because it tells you the actual activity required to hit a target, instead of guessing and hoping next year will be better.

@aussieflya Eli I’m so sorry for your loss my friend. May his memory be a blessing. BDE 💔

My friend Eli was murdered today in cold blood. He was hosting a Chanukah party on Bondi Beach. We were friends for over 20 years. Eli devoted his life to helping others and to spreading goodness, kindness, and light wherever he went. It wasn't just his vocation, it's who he was. When I was 16 and studying abroad, I found out that my mum was diagnosed with an aggressive cancer. There really wasn't anything to say, much less to do but Eli would sit with me and we would sing songs together. He was just there because he always showed up. The only thing Eli would want in response to this evil, is more good in its place. More light in the face of darkness. And more people to show up. Tonight, go out and attend your local public menorah lighting. Light the menorah with your family. Teach your children. Stand together. Show the world that darkness can never overcome light. Let's show up and make Eli's light shine even brighter! "DM me if you need a menorah" (The QT is Eli's last post) BDE Eli BDE

@AdamB1438 replace that with a picture of the rebbe!

@danabrahams87 I just looked at the framed picture of you on my desk every morning and think, "What would Abrahams do in this situation?"

One year ago, I was an LP in two deals and I'd been trying to figure out how to get into real estate since 2021. By the end of this year, I'll be the "GP" for three deals bought for a combined $4 million dollars (but worth a lot more). And next year we'll keep going.

@ElonGerberg buy the bricks 🧱 not the income 💵

How important are "credit" tenants?

@moseskagan interestingly we’ve had a cluster of tenant calls from folks who have found us via chat gpt, which is a function of on site content

What happens to all the SEO companies, when no one searches Google anymore?

@barrettjoneill sometimes the best hand you play is the one you fold 🃏

Pulled the plug on the last day of due diligence. Everything looked great… Except the tenant interviews raised red flags and the risk profile could no longer be justified. LP money is sacred and must be treated as such — dead deal costs are a part of the game. Still hurts.

@barrettjoneill class b industrial tenants are not fancy

I have a compulsion to build contractor bays and small industrial. Mostly because the consensus is it doesn’t make sense in this environment. My guess is you look like a genius in 5-10 years.

@shaig @barstoolsports @stoolpresidente to be honest the way @stoolpresidente has dealt with it and documented the response is pretty amazing. should have been the playbook for other CEO’s and leaders over the past couple years to tell you the truth

@austinmaleki love this pal

@GabeGroisman BDE. I’m so sorry for your loss Gabe

My Rabbi died last night. Rabbi Sholom Lipskar. z”lb The giant who literally built our community in Bal Harbour. It is very hard, almost impossible, to process. My teacher. My confidante. My friend. He married me. He named my 5 daughters. He swore me in as Mayor. He prayed with me when I needed it most. He was by my side to celebrate my greatest highs and to console me and get me back on track when I needed it most. He taught me and our whole community what it is to be a proud Jew. He was a giant. His legacy will be felt for many, many generations. May his memory be a blessing.

@SamIAmtheREMan shkoyach. chag sameach my friend

Thrilled to have closed on my largest hard money deal last week! $14MM! 47% LTV 12.50% per annum! Let’s go!!! 🚀 🚀 If you’d like to join in on future deals, reach out!

@ChrisRamsey60 spot on. that pic is our small bay property in FLL 🕺😝

This is where you start! Contractor garages when starting in industrial. Why? Extremely high demand and low risk. There is risk in these bigger industrial buildings. The big boys could sit vacant for long periods of time. With contractor garages we solve that problem.

@moseskagan in small bay industrial epoxy floors, matt black paint finishes on the ceilings and chic lighting

To create great units that generate outsized operating margins: Add timeless details that increase rent without adding much operating expense or complexity. Examples: High ceilings, large windows & lush, perennial landscaping. What are some others?

@fortworthchris congrats brother 🕺

@ChadGriffiths i’d say the lower end of the range even smaller - we have 400 SF commercially zoned bays with both overhead garage door and man doors

Small bay industrial is hot right now. But what is it? Definitions can vary but I'd say it's warehouse bays ranging from 2,000 to 5,000 sq ft that will generally be part of a larger building. For example I included a picture below that is a 40,000 sq ft building comprised of ten 2,000 sq ft bays. These buildings might also be referred to as flex building as there's a seemingly unlimited amount of uses that operate out of them (subject to zoning, unless you're in Houston). Sometimes more than one bay gets leased at the same time, so in theory one tenant could operate out of a much larger space even though it's a series of these small bays. The bays are usually 20 to 40' wide with depths anywhere from 60' to 120'. Loading is primarily grade-level overhead doors, though some may have dock-high loading. Ceiling heights are anywhere from 14 to 24' clear. A lot of the current inventory is older so I'd say 18' - 20' is most common. Most have a small office build-out being 20 - 33% of the total space. Each bay tends to have it's own bathroom and utility services as well. The reason these are so hot is because supply has been constrained for decades. It's simply too expensive to build these based on the rent that can be charged so it just hasn't made economic sense for most developers. So supply has not kept up nearly with demand (at least in markets with growing population). Vacancy rates in many markets is effectively zero and rates are moving up. There will be a point where it does make sense to build and at that point there will be a gold rush and we'll overbuild as we always do. Tenant's are often non-credit, needy and afraid to commit to term leases because they think their business is going to 10x. Some of them are amazing tenants, others are very hard on the building. It's much more management intensive than other types of industrial. Anyways that's small bay industrial.

@ChrisRamsey60 looks identical to our contractor garage in broward! small bay all the way 🕺

This is where you start! Contractor garages when starting in industrial. Why? Extremely high demand and low risk. There is risk in these bigger industrial buildings. The big boys could sit vacant for long periods of time. With contractor garages we solve that problem.