The Best Ever CRE Show JF 3946: Zoning Power, Risk Mitigation, and Institutional Scaling ft. Ari Rastegar
Jun 24, 2025
Ari Rastegar, the founder and CEO of Rastegar Capital, shares his journey from law school to real estate magnate. He discusses the crucial role of zoning and entitlement in large-scale developments in Texas. Ari emphasizes the importance of risk management and strong governance, even for smaller operators trying to attract institutional investors. He also shares insights on navigating financial challenges amid economic volatility, the need for collaboration in construction projects, and the strategic value of building relationships with third-party fund administrators.
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First Real Estate Deal Story
- Ari Rastegar bought a single lot for about $4,000 during law school and partnered with a local builder to develop a starter home.
- This hands-on experience provided a foundational understanding of construction and real estate development nuances.
Power of Zoning Expertise
- Expertise in zoning and entitlement creates significant value before construction begins.
- Rezoning land to allow more intensive use can drastically increase land value while mitigating construction risk.
Industrial Development Near Tesla Gigafactory
- Ari invested $2 million in 50 acres near the Austin F1 track before the Tesla Gigafactory announcement.
- The factory announcement increased the land's value dramatically and led to building a large industrial facility leased to Tesla suppliers.
