NNN Development, Programmatic Equity, and Yield on Cost w/ Andrew Dunn, VAC Development
02/20/24 • 59 min
This episode takes you inside the deal-making process of commercial real estate investor Andrew Dunn. Andrew is the managing partner at VAC Development, an asset-class agnostic real estate investment group focusing on yield and asset allocation.
Andrew primarily runs the acquisitions, capitalization, and business plan execution for the firm.
In this episode, Andrew reveals his approach to scaling a real estate business through a programmatic model. He details how he sources deals that fit the criteria of large institutional investors and secures large equity checks through relationships. Andrew also provides insights into evaluating retail, office, and mixed-use deals through an analysis of yield on cost and development spread.
Timestamps:
00:00 Intro
01:09 Andrew’s Dunn background
04:20 Getting into commercial real estate
06:42 The importance of operator selection for hotel deals
09:56 Setting yourself apart from the competition
12:14 Chasing equity vs. chasing deals
16:30 The director of investor - requirements and commissions
18:57 Investor relations strategies for finding capital
23:51 The Starbucks lease strategy
32:19 The importance of lease in terms of cap rate
40:05 Yield of cost metrics and risk evaluation
49:33 The influence of demographics on property value
53:33 Retail vacancy rates and office space trends
56:00 Shift in consumer behavior towards outdoor malls
59:56 Sublease and healthy market
Interested in chatting with Andrew?
Connect with him on LinkedIn:
https://www.linkedin.com/in/andrewmdunn41/
X/Twitter:
https://twitter.com/andrewmdunn_
tiktok:
andrewmdunn_
Or through his company site:
https://www.vacdevelopment.com/
--
Breneman Capital: https://www.breneman.com
Investor List: https://www.breneman.com/invest
Passive RE Investor Guidebook: https://www.breneman.com/downloads
Connect with Drew: https://linktr.ee/drewbreneman
This episode takes you inside the deal-making process of commercial real estate investor Andrew Dunn. Andrew is the managing partner at VAC Development, an asset-class agnostic real estate investment group focusing on yield and asset allocation.
Andrew primarily runs the acquisitions, capitalization, and business plan execution for the firm.
In this episode, Andrew reveals his approach to scaling a real estate business through a programmatic model. He details how he sources deals that fit the criteria of large institutional investors and secures large equity checks through relationships. Andrew also provides insights into evaluating retail, office, and mixed-use deals through an analysis of yield on cost and development spread.
Timestamps:
00:00 Intro
01:09 Andrew’s Dunn background
04:20 Getting into commercial real estate
06:42 The importance of operator selection for hotel deals
09:56 Setting yourself apart from the competition
12:14 Chasing equity vs. chasing deals
16:30 The director of investor - requirements and commissions
18:57 Investor relations strategies for finding capital
23:51 The Starbucks lease strategy
32:19 The importance of lease in terms of cap rate
40:05 Yield of cost metrics and risk evaluation
49:33 The influence of demographics on property value
53:33 Retail vacancy rates and office space trends
56:00 Shift in consumer behavior towards outdoor malls
59:56 Sublease and healthy market
Interested in chatting with Andrew?
Connect with him on LinkedIn:
https://www.linkedin.com/in/andrewmdunn41/
X/Twitter:
https://twitter.com/andrewmdunn_
tiktok:
andrewmdunn_
Or through his company site:
https://www.vacdevelopment.com/
--
Breneman Capital: https://www.breneman.com
Investor List: https://www.breneman.com/invest
Passive RE Investor Guidebook: https://www.breneman.com/downloads
Connect with Drew: https://linktr.ee/drewbreneman
Previous Episode
Strategies for Succeeding in Commercial Development | Tanner Webster
In this episode, our guest, Tanner Webster, shares his journey. Tanner discusses how he learned the ins and outs of real estate development through hands-on experience, flipping houses, working for a developer, and then taking the risk on his first ground-up development project.
Listeners will learn Tanner's strategies for raising capital from investors, navigating the development process, and why he is targeting Class B/C industrial real estate today.
Highlights of this episode:
00:00 Intro
01:09 How did Tanner Webster get into real estate?
03:21 The first deal in 2019
05:56 Cold calling and learning from a real estate developer
13:14 Starting his first ground-up project
18:45 Real estate development and financial strategies
20:57 The benefits of Freddie Mac SBL loan
23:22 Closing a $4.3 million renovation deal in cash
29:28 The best way for people to start out
32:13 Developing land for commercial uses
36:47 Industrial real estate development
45:09 Tanner giving back through his podcast
48:25 Go out and be willing to fail
Interested in chatting with Tanner? Connect with him on LinkedIn: https://www.linkedin.com/in/tanner-webster-76b182193/
--
Breneman Capital: https://www.breneman.com
Investor List: https://www.breneman.com/invest
Passive RE Investor Guidebook: https://www.breneman.com/downloads
Connect with Drew: https://linktr.ee/drewbreneman
Next Episode
There Are Good Deals In "Bad Markets." There Are Good Deals In "Bad Cities." There Are Good Deals At All Times.
Is now a good time to invest?
It’s easy to make excuses.
“Interest rates are high.”
“The market is tough.”
“We’re facing a recession.”
Sure, it’s a challenging market to buy in.
But that means it might be easier to get a broker’s attention.
It might be easier to find deals with less competition.
It might be easier to be taken seriously.
Are you going to need to comb through more deals?
Yes.
Does that mean good deals don’t exist?
No.
There are good deals in bad markets.
There are good deals in bad cities.
There are good deals at all times.
--
Breneman Capital: https://www.breneman.com
Investor List: https://www.breneman.com/invest
Passive RE Investor Guidebook: https://www.breneman.com/downloads
Connect with Drew: https://linktr.ee/drewbreneman
If you like this episode you’ll love
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