Today, Jonathan talks with Drew Wahlgren, Managing Director, Capital Markets with MAG Capital Partners. MAG specializes in purchasing industrial assets through a sale-leaseback strategy with stable tenants on long-term leases. Jonathan and Drew discuss MAG's strategy, why investing in small towns might not be too risky, structuring ideal leases, and their unique way to align interests amongst general partners and limited partners.
Connect with Drew and MAG:
https://magcp.com/
https://www.linkedin.com/in/drew-wahlgren/
Takeaways
- MagCapital Partners focuses on single tenant, triple net lease, industrial real estate, with a particular interest in long-term leases backed by American manufacturing companies and food producers.
- Sale leasebacks are a common strategy for MagCapital Partners, allowing them to acquire properties from businesses and simultaneously sign long-term leases. This provides contractual value and a predictable yield.
- MagCapital Partners places a strong emphasis on vetting tenants and underwriting their creditworthiness. They analyze financials, interview key personnel, and assess industry and market factors to understand the risks and opportunities associated with each tenant.
- Interests are aligned between general and limited partners through structures such as preferred returns and profit splits. MagCapital Partners also differentiates itself by using full recourse debt, with the principles personally signing liability on the loans.
- MagCapital Partners has a diverse portfolio of properties across different markets, with a focus on the Midwest, Rust Belt, and Southeast regions of the United States.
Chapters
00:00
Introduction
01:27
Background and Early Entrepreneurial Experience
03:16
Transition to Real Estate Investing
05:11
Overview of MagCapital Partners
06:06
Focus on Single Tenant Properties
07:21
Addressing Concerns about Single Tenant Properties
09:54
Scale and Portfolio of MagCapital Partners
11:13
Typical Deals and Sale Leasebacks
15:14
Markets and Opportunities
23:03
Investing in Small Towns
30:50
Vetting Tenants and Underwriting
38:40
Interests Alignment and Deal Structure
42:06
Connecting with MagCapital Partners
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*Some or all of the show notes may have been generated using AI tools.
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