RE #203: Jeff Gleiberman - Managing Director at MG Properties - 33,000 Units and counting...
The Fort
Introduction
This chapter explores two main investment strategies: value-add and core plus. It delves into the process of renovating older properties and improving newer ones, highlighting their success in the multifamily market.
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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Watch this episode on YouTube: https://youtu.be/aT6Q3nP0rxs
(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?
Connect with Jeff:
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