$900m+ in Sale-Leaseback Industrial Assets with Drew Wahlgren

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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podcast@thesourcecre.com

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*Some or all of the show notes may have been generated using AI tools.