Managing Director Zach Harris and Investments Director Hunt Rose from TruCore Investments discuss their transition from brokerage to investing in Class B industrial real estate. They explore criteria for functional industrial buildings, property value evaluation, and leveraging networks for successful investments. The podcast emphasizes market knowledge, strategic partnerships, and proactive property management for maximizing investment returns.
The discussion centers around specializing in Class B Industrial properties, with a focus on warehousing, distribution, manufacturing, and industrial outdoor storage. The speakers highlight the strategic importance of understanding different types of industrial spaces to capitalize on market opportunities.
Acquisition Strategy and Market Focus
The acquisition strategy includes targeting properties in the top 150 markets across the US, with a preference for primary and secondary markets. The speakers emphasize the value of broadening the tenant base by considering properties with a mix of loading options to facilitate future flexibility in tenant selection.
Value-Add Investment Approach
The speakers detail their value-add investment approach, which involves conservative underwriting, proactive asset management, and assessing multiple exit strategies for each property. They share examples of successful value-add deals and highlight the importance of mitigating risks through thorough due diligence and strategic planning.
Diversification and Tenant Profile
The discussion touches on the importance of diversifying tenant profiles within industrial properties, including warehousing, manufacturing, and added considerations for high-functioning industrial outdoor storage facilities. The speakers underscore the significance of understanding different tenant needs and property functionalities to enhance investment opportunities.
Broker Relationships and Networking
The speakers emphasize the value of establishing strong relationships with brokers to access deal flow, market insights, and potential investment partnerships. They highlight the benefits of engaging with professional associations like SIOR and NAOP to broaden networks and gain market expertise for successful industrial investments.
In this week's episode of the industrial real estate show I was honored to be joined by Zach Harris and Hunt Rose from TruCore Investments.
Zach and Hunt are two of my favorite guys in the industry and they focus on investing in class B industrial real estate.
About Zach:
As Managing Director and one of the co-founding partners, Zach is responsible for the leadership, growth, and strategic direction of the company while also overseeing the investment and operational functions. Prior to TruCore, Zach was a Director at Stan Johnson Company for over 12 years, where he specialized in net lease industrial investment sales brokerage for clients nationwide and contributed to the closing of over $5.0 billion in transaction volume. Harris earned his B.S. in civil engineering from Villanova University and his master’s degree in business administration from the University of Oklahoma.
About Hunt:
As Investments Director and a co-founding TruCore member, Hunt oversees investments, financial underwriting, due diligence, and assists in origination of new investment opportunities. Prior to TruCore, Rose was an Associate Director at Stan Johnson Company specializing in providing equity capital solutions for new real estate development projects nationwide. Rose contributed to the capitalization of more than $2.5 billion in transaction volume and placement of over $200 million inequity capital. Rose started his career with Deloitte in the Hedge Fund and Private Equity Advisory Group in Dallas, TX. Rose obtained a Certified Public Accountant designation and earned a master’s degree in business administration from Oklahoma State University.