The FORT Podcast: John Goff – Founder @ Goff Capital Partners
John C. Goff is an investor based in Fort Worth, Texas. His family office, Goff Capital, invests across multiple sectors including wellness, aerospace, energy, gaming, entertainment, and real estate. Among his holdings are Canyon Ranch – the world’s recognized leader in health and wellness, and Crescent Energy (NYSE:CRGY), where he serves as Chairman of both companies. John is also Chairman and principal owner of Crescent Real Estate which has assets under management, development, and investment capacity of over $10 billion.
On this episode, Chris and John discuss:
– John’s career working with Richard Rainwater
– Building, selling, and buying back Crescent from Morgan Stanley
– Thoughts on the current real estate market
– The challenges and opportunities facing the city of Fort Worth
Listen on:
Spotify
Apple Podcasts
YouTube
Topics
(00:00:00) Intro
(00:03:02) Suffering from ADHD
(00:05:11) The impact of studying accounting
(00:07:35) Richard Rainwater
(00:17:41) Building Crescent & selling to Morgan Stanley
(00:37:49) Buying Crescent back
(00:46:57) Thoughts on the current RE market
(00:55:27) The future of work is in the office
(01:01:11) Class AA Office opportunities
(01:02:35) Raising a GP fund
(01:04:16) Thoughts Oil & Gas
(01:18:06) Canyon Ranch
(01:28:11) The opportunity for Fort Worth
(01:43:58) What do you wish you had spent more time doing or less time doing?
Episode Summary
With a wealth of experience and a proven track record in real estate investment, Goff shared valuable lessons and perspectives, drawing from his extensive career.
John Goff’s journey in the real estate world has been marked by strategic thinking and a contrarian investment approach, traits he honed while working closely with renowned investor Richard Rainwater. Goff emphasized the impact of this mentorship, highlighting Rainwater’s ability to attract top talent and create an energetic, encouraging work environment. Reflecting on his decision to delve into real estate at a time when the industry was not in favor, Goff underscored the importance of seizing contrarian opportunities, a principle that played a critical role in the founding of Crescent Real Estate.
The acquisition of the Crescent, a highly leveraged but iconic asset, marked a pivotal moment in Goff’s career. He detailed the complex process of buying the debt associated with the property, navigating challenges, and ultimately succeeding in this ambitious endeavor. The strategic partnership formed with Carolyn Rose Hunt, the original developer of the Crescent, was highlighted as a key factor in this transaction, demonstrating Goff’s ability to build valuable relationships and secure advantageous deals.
As the real estate market evolved, Goff’s strategies adapted. He shared insights on the changing dynamics in the office sector, emphasizing the growing importance of quality office spaces that help companies attract and retain top talent. Goff highlighted the disparity in the market, with a specific focus on high-end, well-located office buildings in prime markets, particularly in Texas, where population influx and economic growth create ripe investment opportunities.
On the topic of investment strategy, Goff outlined his focus on acquiring existing Class A office buildings rather than building new ones, emphasizing the time-limited and highly focused nature of these opportunities. He also touched upon the benefits of the GP fund structure in investment, citing its flexibility and the ability to remain contrarian and opportunistic without the pressure of a large capital pool.
The conversation also delved into the oil and gas sector, with Goff expressing his belief in the significant trade opportunities present, despite the challenges posed by current market conditions and government policies. He criticized the inconsistency in ESG investing and the global nature of climate issues, calling for a more balanced and realistic approach to energy transition.
Goff’s partnership with KKR and the market position of Crescent Real Estate were also discussed, with Goff acknowledging the challenges in explaining the management agreement with KKR to the market but expressing his respect for the firm and the value of the partnership. He hinted at potential misunderstandings in the market regarding Crescent’s value and strategy, suggesting that there may be aspects that are not fully appreciated by investors.
The FORT is produced by Johnny Podcasts