John Andreini

Follower Update on Who I Am: 20 years experience brokering retail real estate across the US at @cppartners_cre. Since 2012, I have been partnering with my developer clients providing them capital to build shopping centers, national restaurants, and medical facilities. 2020-22 I raised and deployed $150M into companies such as @PalantirTech, @anduriltech, @airtable, and a bunch of others - had winners, had losers. Ended up with investment exposure to 70+ @sonicdrivein locations, @hawaiianbros, and will be announcing the acquisition of a coffee chain shortly. In summary, I am an investment sales broker with a decade plus track record investing alongside my clients. Here to share war stories and expertise in real estate investing & brokerage.

@RetailBrokerHTX For sure

@jandreini1 Placer is 80% good intel but doesn’t account for WHAT people are buying or how much, just foot traffic Especially in grocery stores it’s about how much is in the shopping cart and what it is

Tenant interviews are the most important part of any CRE acquisition, yet the majority of buyer's don't do this. For corporate users, speak with a manager - one guy told my client sales were terrible and he was quitting - someone else bought the property because they didn't do this. When acquiring a strip center, you are buying a small nuanced community - there tends to be an unofficial "mayor" and quarrels amonst the tenants / landlord the broker and seller would never reveal. Basic questions include: -Tell me about your business - start the relationships before you close - you need to have a mole per se. -How are sales? -What are some things you would like to see done here? Tenants are extremely fearful of new landlords and will pause capital improvements or undermine a new landlord if they don't give out the right vibes. The best ice breaker is to remind them that their contracts are secure and you are prepared to spend money to improve signage, paint, etc. Completely disarms them. On the other extreme, a landlord bought a strip center did no interviews and sent letters raising rents - the tenants colluded and all ignored the letters for over a year. Having interviewed hundreds of tenants and strip center villages, the things you will discover would shock you. Happy to provide further insight this into acquisitions folks are making - AMA.

@TAYVAY_ @komodomiami

@RetailBrokerHTX True, there are other tools such as camping out at the store (less practical), placerai, etc.

@jandreini1 Agreed. Clients are always shocked I don’t have a batline to the nationals to get direct honest feedback about their objective and subjective opinions of a store. Like most things in our game, feedback from nationals is limited and untimely.

@Dudewithacigar In

Taking at 5:40am on a holiday, boarding a cross-country to kick off 2 weeks of deal-hunting, chaos, and mild world-improvement. Someone close asked if I’ve still got “10 years left in me” for this life. Dang woman, the chase IS the game. I’m good for 50 more. Catch me in 2076 still sniffing out bargains like a caffeinated bloodhound. Who’s coming with? ✈️💼

@RetailBrokerHTX That's a good point, either way helpful to get the negative feedback which broker / landlord likely won't be forthright about

@jandreini1 National tenant interviews w/ manager can be misleading. You tend to get a negative view of their store, based upon their job frustrations. We had an interview with a Regis salon, and manager went off about customer base, staff, etc. Turned out a top quarter sales store.

@newlista For sure, they want to feel you are in their corner but at same time have to tow the line on being landlord.

If you can avoid raising rent when the economy is bad, tenants will remember that. Give them confidence that their lease is secure, and build a real relationship instead of hiding behind a corporate curtain is a good idea. Show tenants you want them to prosper. Definitely learn about their business. Refer them to useful marketing resources so they can make more sales and prosper, if they are weak in that area. That is how you win long term.

@BryanJ361 Bingo

@jandreini1 Agreed, interviews take time but are much more informative than estoppel certificates that are often forged

@trentgilleyfw @ComAgentSuccess Happens

@jandreini1 @ComAgentSuccess The only question that matters if the center is positioned in a good market, on a street , and if the price is right. Everyone trying to apply these standards to neighborhood are ridiculous. Vacancies happen in retail. Work hard and fill them.

@jonbrooks Found on internet

@jandreini1 that looks like a Florida strip center

@MIAmultifamily Not always, it has to be negotiated - when they say no, there tends to not be a valid reason cuz something to hide which is helpful = pass

@jandreini1 Are tenant interviews a contract DD requirement? What incentive does seller have to allow these?

@the_don1722 Some people are satisfied with the security of stable cash flow vs upside

@jandreini1 Why would anyone buy a building that has maximum tenants? There’s no value add in that whatsoever? Genuine question.

@hodisra Yep

@jandreini1 Right. The signals exist. Glassdoor flags store closures, BLS QCEW shows employment drops, mall foot-traffic data leads vacancy. Almost nobody runs them pre-funding because there's no model that fits any of it into the credit memo.

@hodisra That’s actually a great point, there is literally zero investigation by lenders ever unless they are in the news for something / publicly disclosed.

@jandreini1 Same gap on the lending side. Originators take rent rolls at face value, never call the regional manager, never check store-level traffic. The default arrives months after the tenant first flagged 'we're consolidating this submarket' to a district VP.

@DietCoke82 🇺🇸

@jandreini1 👏👏👏

@VTRConnect Word

@jandreini1 You may like minting commission agreements on our platform too. If the rent is paid the agents get paid. Will be suitable for human and you know… what we don’t want to talk about kind of agent. 🦾

You definitely should set it up with landlord and insert it into the contract, if you can’t because it’s a corporate user walking in and chatting with manager is best bet. There are ways to do so without saying you are buying it and just shaking manager or employee down via casual conversation - is it always this dead or busy? For example

@jandreini1 Are you allowed to do interviews as part of the buying process or are you just doing this on your own without the sellers awareness ?

@VTRConnect Strong

@jandreini1 Feel your pain. Exactly why vtrconnect.com was created. Just one elevator pitch out of 50+✌🏼

@gmovestr @keithkirwen 🔥

@jandreini1 @keithkirwen Was a great pleasure.

@gmovestr @keithkirwen That place is spectacular, thanks for joining !

@jandreini1 Let’s revisit this ~ @keithkirwen Thank you for allowing me to crash the Zero Bond room. Was a highlight of my ICSC!

@gmovestr Basically a user wanted to grow out there, I knew one guy that did development, we teamed up and rest is history. No new ones in pipe.

@jandreini1 Tell me more about the attraction to Spain. The origin story, connection, (paused) ~ yet future endeavors…