LDCRE’s Roundtable Discussion on 2018 CRE State of the Market with Jeff Rowlett, Sean Lyons, and Nick Miner

You inherit $25,000,000 and it has to be invested in Commercial Real Estate before the close of 2018; where do you invest?

LDCRE conducts a Roundtable discussion on the commercial real estate state of the market with three leading commercial real estate brokers, all of whom are all in the trenches every day. Nick Miner,CCIM is Senior Vice President at ORION Investment Real Estate, Sean Lyons is a Founding Partner at Triad Real Estate Partners, and Jeff Rowlett is a leading Investment Advisor at Marcus & Millichap serving private capital investors in Chicago, Milwaukee and nationwide. Continue reading LDCRE’s Roundtable Discussion on 2018 CRE State of the Market with Jeff Rowlett, Sean Lyons, and Nick Miner

Spotlight Interview: Adam Tarantur, CCIM Principal at Podolsky Circle CORFAC International

Adam Tarantur is a Principal at Podolsky Circle CORFAC International and also sits on the firm’s Executive Committee. He began his career in commercial real estate upon graduating from the business school at the University of Wisconsin – Madison with a degree in Real Estate & Urban Land Economics. Adam’s commercial real estate expertise encompasses a wide range of disciplines, including investment sales; landlord representation; distressed property consulting; and tenant representation. His client base is similarly diverse, consisting of both global and local clients, as well as institutional and entrepreneurial owners. Adam has successfully completed the disposition of over 3.6 million square feet of industrial, office, flex and retail properties. He has also transacted countless leases, both representing tenants and working on behalf of ownership.

Continue reading Spotlight Interview: Adam Tarantur, CCIM Principal at Podolsky Circle CORFAC International

Buildout and LDCRE (Leavitt Digital) Forge Strategic Syndication Partnership


Buildout and LDCRE’s partnership enables Buildout clients to increase their local and global reach via LDCRE’s listing platform and listing distribution network of 900+ News Websites throughout the world, growing to 2,000 News Websites over the next 24 months. This partnership allows commercial real estate professionals to increase the local and global market reach on their respective listings, while increasing the ease and accessibility of accurate commercial real estate listings to parties all over the world.

Continue reading Buildout and LDCRE (Leavitt Digital) Forge Strategic Syndication Partnership

Spotlight Interview: Lee Kiser: Principal/Managing Broker, Kiser Group / Principal KIG / Principal, KIG Analytics


Lee Kiser co-founded Kiser Group with his partner Estella Kiser, in 2005, and has developed the company into the most recognized brand in Chicagoland for mid-market multi-family commercial real estate brokerage. Kiser Group currently has 23 staff members.


LD: Congratulations on Kiser Group’s 10-year anniversary! Your team has a very impressive track record for selling apartments throughout the Greater Chicagoland area.  Can you tell us a little bit about how Kiser Group distinguishes itself from other commercial real estate brokerage firms?

LK: Kiser Group brokers are the most highly educated, best-trained agents in the market. Our brokers’ ability to lead their clients to solid investments is unrivaled. Another differentiator is that Kiser Group provides its agents with everything they need to help their clients, including the latest technology, research, and marketing tools. No other firm in Chicagoland knows multi-family investment like Kiser Group.


LD: Everything we have read lately indicates all signs for apartment investments remain strong: 1. Financing remains active, 2. Occupancies remain strong, 3. Rents are increasing.  However, there is strong market opinion that a rate hike is right around the corner.  In your opinion what will the next 1-2 years look like for Apartment Investment Sales on a National basis?

LK: Everyone seems to agree a rate hike is inevitable. The first moves will be nominal – 25 basis points per – and the Fed will monitor how the economy adjusts. I anticipate that we could be as much as 200 basis points higher by the end of 2017. If so, cap rates will also adjust. At the same time, I do not anticipate rent grow slowing; meaning NOI’s should continue to grow through the end of 2017. The effect of the simultaneous trends of cap rate increase and rent growth will be a leveling of values in multi-family over the next few years but I do not anticipate a decline in value (price per unit/foot)


LD: Throughout your tenure in selling apartment buildings in Chicago, has Chicago seen an increase in outside capital (non-Chicago based companies) investing into its real estate; driving valuations higher and cap rates lower?  Where is this capital coming from geographically?

LK: Chicago has become a world-class city in the past 10 years and with that has come world-class investment. We are currently closing Chicagoland apartments with investors from both US coasts, Canada, China, Japan, Israel, and several Western European countries. The profile buyer having a greater impact on cap rate compression, though, is the fund-driven investor, not the foreign investor. Chicago has seen institutional and pseudo-institutional investors moving into traditionally non-institutional assets. This means increased competition for the traditional mid-market private landlords. The return requirements for the fund-driven investors are substantially lower than the private market. This has been the biggest factor in cap rate compression in Chicago.


LD: Do you believe the increase in outside real estate investment dollars into Chicago is an indicator that real estate in Chicago is under priced when compared with other leading US Cities?  Has the City of Chicago has elevated itself over the years?

LK: Chicago has definitely elevated itself over the years but local cap rates are still significantly higher than other major US markets where foreign or fund-driven investors have traditionally purchased (NYC, San Francisco, LA, Miami). Chicago multi-family real estate is the best investment relative to the same asset class in any other major US market.


LD: Have tenants become more demanding on the level and quality of the amenities they expect from their landlords?

LK: Amenities are certainly more of a competing chip for landlords than previously but not necessarily due to tenant demand – due to beating the building next door. Chicagoland’s new construction pipeline boasts buildings with world-class amenities such as pet grooming areas and salons, outdoor grill areas that mimic high-end restaurants, demonstration kitchens, smart technology for laundry and parcel service, and many more.


LD: Can you tell us a little bit about what types of debt you are seeing on the acquisition side (CMBS, Agency, Fannie, Freddie, etc.)?  What types of leverages are typical on of these lenders on the deals your team is closing?

LK: The only thing I think is unusual is the return of the CMBS market. I’m seeing loans completed at LTV’s, price points, and on appraisals that make me think no one really learned anything in 2008-10.


LD: Everyone has a few transactions that stand out in their careers.  What is one deal thus far in your career that stands out to you and what is the significance to that deal?

LK: Each year brings transactions memorable for different reasons. The ones I remember most are the ones I’ve sold more, than once. I really enjoy watching the same asset in the hands of different clients over time. Each client adds value in a different and unique way. Kiser Group’s record so far is selling the same asset four (4) times, with several in the “3-times” category. Nothing to me speaks more loudly than repeat clients and repeat assets. This means that we’re helping clients create wealth over time and continually being called to assist in that process. I anticipate Kiser Group has the longevity to be transacting the same asset a dozen times. Right now I’m seeking the 5-peat.


LD: What advice would you give a young Lee Kiser just out of college and starting his professional career?

LK: Move to a big city (Chicago) earlier than you did, align yourself with an industry mentor as quickly as you can, learn everything you possibly can about your chosen field. Immerse yourself as quickly as possible in your chosen field, then as quickly as possible think about how you can make things better for your clients. Once you have the knowledge, you will create new ways of working within the field. If you do this at an early enough age, you’ll be in a position to change things in your profession.


For more information on Lee Kiser and Kiser Group,

please visit ‪www.kisergroup.com


In 2014-15, Lee co-founded KIG and KIG Analytics with his Partner Susan Tjarksen. KIG is an institutional multi-family broker based in Chicago. Licensed in 9 Midwest states, KIG currently has listings in Illinois, Wisconsin, Indiana, and Kentucky. KIG has 10 staff members. KIG Analytics is a data analysis and visualization company that is a wholly owned subsidiary of KIG. ‪For more information on KIG and KIG Analytics, visit www.kigcre.com.


For more information on Leavitt Digital please visit www.ldcre.com.


Spotlight Interview: Jeff Rowlett, Vice President Investments/ Dir. National Retail Group/ Dir. Net Leased Property Group at Marcus & Millichap

JR News Release

Jeff Rowlett, along with the support of his team is among the top investment brokers at Marcus & Millichap.  Over the years Jeff has honed his skills and developed a niche, concentrating on STNL assets and multi-tenant retail throughout the Midwest and Nationally.  Jeff has worked at two of the top commercial real estate brokerage firms and been pursed by many other top CRE Firms.  Jeff’s exposure to these top commercial real estate brokerage companies has given him a unique peek behind the curtains at some of the major firms and allowed him to see which corporate structure and culture worked best for his style of brokerage and most importantly, for his clients.


LD: What career path did you want to take when you were in college?

JR: Surprisingly I have a degree in Kinesiology, Sports Medicine with an emphasis in Cardiac Rehab and my goal was to become an Athletic Trainer in the NFL.


LD: What events in your career path brought you to your current position at Marcus & Millichap?

JR: Looking back I can only say that I was guided into my current career path and I had little if anything to do with it. One of my clients that I was working with in athletic training introduced me to a family friend that happened to be one of the top investment brokers at Marcus & Millichap and one thing lead to another. I didn’t even know what commercial real estate investment sales meant at that time, but it intrigued me. Marcus & Millichap has a great platform and training program, so I jumped in headfirst and never looked back.


LD: Can you tell us a little what your “average” week of work is like?

JR: My average week consists of hours upon hours of time on the phone or meeting with clients to discuss their commercial real estate needs and if or how my team might be able to help them. This is a relationship business, so the more people you know in the business, and specifically, the more people you can help to solve a problem for, the more valuable you will be. The remainder of my time is spent organizing, tracking escrows, completing proposals and working on mentoring and building my team. I have a never-ending thirst for knowledge, so I invest a lot of time reading and listening to podcast while on the road and always advancing to get better at serving my clients and growing as a person.


LD: Majority of your listings/ sales are in the secondary markets; what are some of the differences you see in investment opportunities in Primary Markets versus investments in Secondary or Tertiary Markets?

JR: Well we have the unique advantage of working in both primary and secondary markets. I live in the suburbs of Chicago, which is where I spent the first 8 years of my career learning and doing deals. Over the past 5 years I have developed a team based out of Milwaukee, so we do a lot of transactions in the Midwest and also our single tenant business, which is a nationwide practice. There are similarities for both markets; location and tenant credit rating are always factors, but the differences are the buyer pools for various markets. The assets in secondary markets have experienced much more attention from out of area buyers the last couple of years because of the limited new construction and limited supply of quality assets for sale. For the secondary markets we see more offer activity from local buyers that know and understand the area well, but we still sell good majority of these properties to buyers from outside the market or state. The primary markets see activity from local & regional buyers, syndicators and institutional buyers alike. Pricing and cap rates for the assets of course vary as well.


LD: In 2015 – 2017 there is an estimated $601 Billion of CMBS maturities hitting the market.  What impacts do you think this will have on the market (listings coming to market, demand for debt, debt available, cap rate expectations, etc.)?

JR: The Fed’s decision last week to hold rates is further evidence that we have some time left in this current cycle and cap rates may even continue to compress for Class A assets. Low interest rates, steady NOI growth, and competitive yields are supporting investment in all categories of commercial properties. Transactions in 2015 are on course to exceed pre-recession peak levels, and most property sectors continue to see inflows of equity and disciplined underwriting by debt providers. With positive economic trends boosting property performance, commercial real estate remains a favored asset class for investors.


LD: All property types have their own cyclical natures for a number of different reasons. Can you tell us a little bit about the cyclical nature in the STNL market?

JR: An STNL property, as an asset class is actually a relatively new category for investors. The sector now even has subcategories such as Dollar Stores, Automotive users, Banks, Drug Stores, Fast Food and QSR restaurants, etc. These properties are very popular among 1031 exchange buyers because of the nature of the long lease terms and limited (if any) landlord management responsibilities. When the recession hit in 2008 these assets became even more favorable due to the predictable cash flow and low price points, which allowed investors to continue buying even with constraints in the capital markets. There seems to be no end to buyer’s appetite for STNL properties right now and for the foreseeable future. Fluctuations in interest rates will have an impact on cap rates and spreads eventually once inflation starts to kick in.


LD: Everyone has a few transactions that stand out in the careers.  What is one deal thus far in your career that stands out to you and what is the significance to that deal?

JR: Your first deal is probably the one you will never forget. There is so much excitement and you are so focused on doing everything right and pleasing your client, so I will never forget the first one. It was a CVS anchored shopping center property in central Illinois and the sellers were a local family and they had worked so hard their entire lives to develop properties and build a portfolio that supported the family financially. It was so gratifying to help them maximize the value and sell at a price that was several hundred thousand dollars above the previous offers they had received before we listed the property. I will always remember that first deal and that they were the first client to hire me and give me a shot.


LD: What advice would you give a young Jeff Rowlett just out of college and starting his professional career?

JR: I mentor new agents to this day. I just started mentoring an agent this past week and have mentored roughly 10 or so agents over the years to help them start their careers. This is something that keeps me humble and grounded in the fundamentals of our business. I advise them to practice and become excellent in the fundamentals; develop a discipline in doing the key factors of goal setting, planning, tracking your activities, prospecting (yes, cold calling is still the MAIN driver of success), and working your plan very hard the first 3-5yrs. Brokerage is fun, but it’s hard work, and there are NO shortcuts. As soon as you get traction, get some help and hire an assistant. I still work with a coach and read to get better every day.


LD: What advice have you received that has been instrumental in your success?

JR: I was fortunate to start my career at Marcus & Millichap where the training and platform is so strong. I have had a lot of great mentors to watch and learn from and some that have invested in me. I was always willing to do the hard work and when I was told, “do this and you will succeed”, I just did it until it paid off. My regional managers and private coaches that I’ve hired have always taught me to be disciplined and do the right things, like continual learning, prospecting for new business every week, and setting goals. It certainly helps that I have a great team that supports me and great clients that see the value we bring to them! I am excited for the future and the next phase of my career.

For Additional Information on Jeff Rowlett please visit Marcus & Millichap or Net Lease Property Advisors. For additional information on Leavitt Digital please visit Leavitt Digital’s homepage.

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