Durable Value Ep 81: Unlocking Value: The Elk Grove Industrial Complex Deep Dive

In this episode of Durable Value, we take you behind the scenes of our recent acquisition—the Elk Grove Industrial Complex in Sacramento, CA. Discover how we sourced the deal, why this property stood out, and the strategies we use to unlock value in multi-tenant industrial assets. We discuss market dynamics, the importance of fresh eyes, and how private ownership creates ongoing opportunities for value-add investors. Whether you’re a real estate professional or an investor, this episode is packed with actionable insights and real-world examples.

Timestamps:
00:00 - Introduction
00:19 - The Power of Marketing: How We Source Deals
00:37 - Building Broker Relationships & Off-Market Opportunities
01:29 - First Impressions: The Pitch and Initial Call
03:03 - Underwriting and Offer Process
03:21 - Seller Background and Property Condition
04:01 - Buying from Private Owners vs. Institutional Sellers
04:24 - Rent Growth and Market Opportunity
04:50 - Business Plan Execution: Managing Lease Rollovers
05:23 - Maintaining Occupancy in a Softening Market
05:50 - How to Find Great Deals in Secondary Markets
06:16 - The Perpetual Value-Add Cycle in Industrial Real Estate
06:37 - Navigating Market Complexity: Tariffs, Inflation, and Supply
07:03 - The Value of Vertical Integration and Property Management
07:43 - Closing

Chapters

• 0:00 Introduction
• 0:18 The Power of Marketing: How We Source Deals
• 0:36 Building Broker Relationships & Off-Market Opportunities
• 1:28 First Impressions: The Pitch and Initial Call
• 3:02 Underwriting and Offer Process
• 3:20 Seller Background and Property Condition
• 4:00 Buying from Private Owners vs. Institutional Sellers
• 4:23 Rent Growth and Market Opportunity
• 4:49 Business Plan Execution: Managing Lease Rollovers
• 5:22 Maintaining Occupancy in a Softening Market
• 5:49 How to Find Great Deals in Secondary Markets
• 6:15 The Perpetual Value-Add Cycle in Industrial Real Estate
• 6:36 Navigating Market Complexity: Tariffs, Inflation, and Supply
• 7:02 The Value of Vertical Integration and Property Management
• 7:42 Closing