The Best Ever CRE Show JF 3877: New Jersey CRE Wins, Cash Flow Tradeoffs, and Building a Capital Team ft. Aaron Fragnito
Apr 16, 2025
Aaron Fragnito, co-founder of People’s Capital Group and a New Jersey real estate expert, offers insights into thriving amidst competition in multifamily and mixed-use investing. He discusses his strategic shift toward Class A assets and the advantages of off-market deals. Aaron delves into managing older properties and the challenges of the mixed-use market, especially in retail. He also shares his journey from house flipping to scaling syndications, highlighting the importance of a solid capital-raising team and investor relations.
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Speed and Relationships Win Deals
- Successful real estate deals in New Jersey depend heavily on relationships and speed.
- Acting quickly before other bidders allows closing deals off-market and below competition.
Low Cash Flow Offset by Cap Rate
- Cash-on-cash returns in New Jersey are generally modest around 5-8%.
- The real value is made through increasing NOI and property appreciation at low cap rates.
Opportunities in Class A Properties
- Aaron's team is acquiring Class A+ buildings where developers lease below market to stabilize.
- They add value through better management, amenities, and pricing, capitalizing on seller motivation.