The FORT Podcast: Jeff Gleiberman – Managing Director at MG Properties

Jeff Gleiberman, Managing Director at MG Properties Group is responsible for investment transactions, investment strategies, and partner relations. Jeff was previously Director of Investments, responsible for corporate equity and debt strategies, and was an Acquisition Manager sourcing and underwriting new investment opportunities. Jeff has also served in asset management, regional management, and onsite property management roles. Prior to joining MGPG, Jeff worked in apartment investment sales at CBRE, the country’s largest apartment brokerage firm, where he oversaw the sale of over $500 million in Southern California multifamily properties.

On this episode, Jeff shares the story of how MG Properties began and his love for the business at an early age. He discusses nuances of the major markets they participate in, how they raise capital, why 1031’s and cost segregation are crucial to their strategy, and how they underwrite and manage their pipeline.

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(02:49) – Jeff’s Career and MG Properties

(04:09) – Did your Dad do anything early on that got you interested in RE?

(06:49) – What is your current day-to-day?

(07:12) – Why are you in the markets you’re in?

(08:55) – Why is CA a low-traded market?

(10:11) – Do property tax values stay locked in?

(10:40) – How early did you know about the Conrad portfolio being up for sale?

(12:16) – Do Los Angeles and San Diego have fundamentals that are different?

(13:22) – How do you underwrite political risk?

(15:08) – What are the pros to investing in Arizona vs. California?

(18:22) – Why don’t you play in development?

(19:54) – Defining Value-Add and Core-Plus Strategies

(21:31) – How many units are you adding per year?

(22:17) – MG’s Deal Processes

(27:08) – How do you raise capital?

(30:11) – The 1031 Exchange

(32:27) – What’s the cost seg portion of your business and why is it so important to your investors?

(33:40) – What does your playbook look like in the first 90-days post-close?

(34:54) – Does rent growth affect your thesis?

(35:59) – Why do you visit each property 2 times per year?

(39:17) – Are you seeing things loosen up in labor and supply chain?

(40:36) – Thoughts on Property Management

(41:36) – Is SFR on your radar?

(43:36) – The Vegas Market

(45:22) – How do you underwrite rent growth going forward?

(46:45) – Jeff’s experience at the NMH Conference (National Multi-Housing Conference)

(48:08) – More on Financing

(49:11) – What amenities matter right now? What doesn’t matter anymore?

(51:12) – Is there anything that countries outside of America do in regards of housing that we should adopt?

Episode Summary

Jeff Gleiberman, a stalwart in the real estate domain, graced Chris Powers’ podcast, imparting invaluable insights derived from his expansive tenure in the industry. With a legacy deeply entrenched in real estate, Gleiberman’s acumen is a testament to his years of experience and familial heritage in property management and asset development.

A significant portion of the discourse revolved around investment strategies, with Gleiberman elaborating on two predominant approaches: value ad and core plus. The former pertains to properties that span an age range of 10 to 40 years. These assets, with their inherent wear and tear, demand meticulous renovations, both in interiors and common spaces. In stark contrast, the core plus strategy zeroes in on properties erected in the past decade. While these assets might be relatively new, they still present opportunities for minor enhancements, especially in burgeoning areas ripe for growth.

Gleiberman emphasized the pivotal role of an adept management team in steering properties towards their maximal potential. Properties that have suffered due to ineffectual management in the past can witness transformative growth under the aegis of a competent management team. Their intervention, as Gleiberman highlighted, can revolutionize both the aesthetic appeal and functional efficacy of a property.

The multifamily real estate sector, a domain witnessing impressive traction, was another focal point. Gleiberman underscored its remarkable performance in the current market cycle, marking it as a sector that has resonated with robust resilience and growth.

The podcast also delved into the company’s growth blueprint, with a keen focus on their strategic incursion into markets typified by minimal trade activity. Markets such as San Diego, characterized by their history of long-standing family ownership, were highlighted. This unique ownership structure leads to limited trades, making them ripe for strategic investment. Moreover, the benefits of California’s unwavering property tax values, a facet that further enhances the appeal of investing in the state, were also discussed.

The episode concluded with Gleiberman shedding light on the overarching vision of his firm and the future trajectory of the real estate sector at large. He elucidated on the nuances of market dynamics, emphasizing the judicious deployment of resources for optimal results. The intricate balance between risk and reward in the sector, coupled with the importance of due diligence and informed decision-making, were also stressed upon.

The Fort is produced by Johnny Podcasts

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