The Source of Commercial Real Estate Value-Add Small Bay Industrial with Frank Forte
Jan 27, 2025
Frank Forte, the Chief Investment Officer and founder of Lucerne Capital Partners, shares his extensive experience in real estate investing, having executed over $300 million in transactions. He discusses the appeal of value-add small bay industrial properties and the challenges of long-distance investing. Forte emphasizes the importance of meticulous due diligence and effective tenant management. He also shares insights on adapting strategies across different states and the necessity of building a local team to navigate the complexities of the market.
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First Small Bay Industrial Deal
- Frank Forte's first small bay industrial deal was a development project in New Jersey during COVID.
- He bought the land cheaply from a man who lost his legs to diabetes and faced challenges like material shortages.
Small Bay Industrial Property Criteria
- Focus on small bay industrial properties with units under 2,500-3,000 sq ft for higher rent potential.
- Prioritize properties in major markets, even if slightly more expensive, due to dwindling supply.
Due Diligence Checklist
- During due diligence, focus on the roof, HVAC system, and parking lot condition.
- Address potential issues preemptively to avoid costly repairs later.