Durable Value: An Investor's Podcast

 In this episode of Durable Value, Ryan discusses building resilient investment portfolios in unpredictable economic conditions. The discussion includes the impact of inflation and recession fears, key attributes of a resilient portfolio, the importance of geographic diversification, and strategies for weathering economic downturns. 00:00 Introduction 00:42 Economic Uncertainty: Inflation vs. Recession 01:34 Core Investment Foundations 02:29 Diversification for Stability 07:18 Debt Strategies for Resilient Investments 09:15 Controlling Assets in Downturns 

 In an interview with IREI, Ryan discusses the different dynamics currently at play in secondary & tertiary markets versus primary markets, how real estate historically performs in secondary & tertiary markets, if secondary and tertiary markets have performed differently than primary markets over the last year, what liquidity is like in secondary and tertiary markets – especially over the last couple years and more. Check out more at https://irei.com/video-and-podcast/graceada-partners-ryan-swehla-on-new-research-that-is-shedding-light-on-smaller-markets/ 

In this episode of 'Durable Value', hosts Ryan Swehla and Joe Muratore talk about the psychology behind risk and reward, particularly in the context of real estate investing. They discuss topics such as loss aversion, market cycles, and balancing caution with optimism, providing valuable insights and practical advice for investors at any stage in their career. 00:00 Introduction00:17 Human Psychology and Loss Aversion04:45 Market Psychology and Real Estate Cycles07:15 Balancing Caution and Optimism09:06 Advice for Younger Investors10:01 Advice for Older Investors12:00 Sensitivity Analysis in Investing13:08 Strategy Over Tactics14:28 Conclusion

In this episode of Durable Value, Joe Muratore and Ryan Swehla talk about the intricacies of portfolio composition and the vital role diversification plays within it. They explore various aspects, from balancing risk and opportunity to the importance of geographic and asset-type diversification. Whether you're invested in industrial, multifamily, or both, learn how to strategically navigate your investments in secondary and tertiary markets. 00:00 Introduction 00:11 Importance of Diversification in Real Estate00:55 Market Strategies and Deal Flow 01:24 Balancing Risk and Opportunity 02:59 Metrics for Portfolio Construction 04:09 Market Focus and Brand Building 05:44 Cash Flow vs. IRR 07:48 Heavy Lift vs. Light Lift Properties 08:55 Portfolio vs. Deal Construction 09:59 Macro and Micro Diversification 10:59 Proactive Market Engagement 12:02 Conclusion

In this episode of Durable Value, Joe and Ryan weigh in on the essential role of investment committees in making sound investment decisions. They discuss how investment committees serve as a system of checks and balances, ensuring alignment with overall objectives and providing a platform for objective critique and strategic approval. The conversation covers various topics, including the structure of their investment committee, the importance of experience, the dynamic nature of investment committees, and real-life scenarios illustrating their decision-making process. 00:00 Introduction 00:03 Role and Importance of Investment Committees 00:10 Functioning of Our Investment Committee 01:48 Team Experience and Responsibilities 03:04 Investment Committee Memo and Data Points 04:48 Dynamic Nature of Investment Committees 06:46 Pre-Flight Process and Strategic Conversations 09:00 Case Study: Evolving Deals 12:02 Final Thoughts

In this episode of Durable Value, Ryan Swehla sits down with Peter Finley, head of institutional capital markets at Graceada Partners. With his extensive background in real estate and capital markets, Peter shares invaluable insights from his days in the Navy to navigating market cycles on Wall Street. He discusses the evolution of institutional landscapes, his experiences during the S&L crisis, GFC, and more. We get a detailed look into the cyclical nature of the financial markets and timeless wisdom for upcoming capital raisers.00:00 Introduction 00:27 Peter's Journey: From Navy to Goldman Sachs01:01 Navigating Market Cycles and Layoffs01:58 Transition to Private Equity02:46 Raising Capital and UBS Experience03:09 Lessons from the Great Financial Crisis07:02 The Misuse of Leverage in Real Estate08:54 Lessons from the Navy11:09 Fundraising Challenges and Successes16:57 Advice for Aspiring Capital Raisers17:46 Conclusion

In this episode, from the 2024 investor day, Ryan talks about the why of Graceada partners. He talks about the foundational principles and history of Graceada Partners, exploring their conservative investment strategies, lessons learned from the Great Financial Crisis, and their focus on secondary and tertiary real estate markets in the Western U.S. He also highlights the firm's unique competitive advantages, risk mitigation measures, and the importance of conservative leverage in maintaining resilient and profitable investments. 00:00 Introduction 04:15 Company History and Founding 05:30 Early Challenges and Learning Experiences08:02 Insights from Brokerage Business 09:37 Advantages of Secondary and Tertiary Markets 13:41 Market Opportunities and Competitive Advantages16:30 Conclusion

In this episode of Durable Value, Ryan speaks with Jonathan Woloshin, Head of Real Estate Research for UBS Wealth Management's CIO Office. Jonathan shares insights on his role and expertise in the U.S. real estate market, from residential and commercial real estate to lodging, and discusses key trends and regulatory actions affecting the sector. The conversation touches on the historical context of real estate cycles, the challenges and opportunities in today's market, and investment strategies for different asset classes. Jonathan also shares his career on Wall Street and offers advice for young professionals entering the field. 00:00 Introduction00:37 Role and Responsibilities at UBS01:44 Journey to Real Estate Research04:24 Lessons from Past Real Estate Cycles06:22 Current Real Estate Market Analysis19:18 Impact of Institutional Capital24:25 Opportunities in Secondary and Tertiary Markets30:01 Advice for Aspiring Analysts31:58 Conclusion

In this episode of Durable Value, Joe interviews Ed Sprague Jr., the Director of Baseball Operations for the Oakland Athletics. They discuss Ed's impressive career, starting from his achievements in college baseball and the Olympics to his successful stint in Major League Baseball. Ed shares insights into what it takes to be a consistent winner and how losing can drive an athlete to perform better. They also talk about Ed's transition from being a player to a coach and later to an administrator. Ed elaborates on his experiences at the University of the Pacific, where he helped elevate the baseball program and oversaw major developments including fundraising for a new stadium. The conversation moves to Ed's current role with the Oakland A's, detailing his responsibilities in player development across various minor league teams. They talk about the innovative approaches the A's are taking, such as integrating biomechanics and analytics into player development. They conclude with Ed's reflections on the challenges faced by the Oakland A's in securing a new stadium and the potential relocation to Las Vegas. Ed offers valuable advice to young people and business professionals on the importance of hard work, learning from failures, surrounding oneself with a supportive network, and maintaining a shared vision to achieve success. Timestamps: 00:00 Introduction and Guest Background 00:50 Ed Sprague's Winning Career 01:10 College and Olympic Baseball Journey 04:28 Professional Baseball Highlights 05:33 Transition to Coaching and Leadership 06:13 Building a College Baseball Program 09:38 Role with the Oakland A's 13:40 Innovations in Player Development 21:12 Future of the Oakland A's 23:37 Advice for Young People and Closing Remarks

In this episode of Durable Value, Joe and Ryan discuss the increasing trend of niche investing in the institutional real estate space. They explore why more capital is being allocated to private real estate and the advantages of focusing on secondary and tertiary markets. With an emphasis on multifamily and multi-tenant industrial properties, they weigh the benefits of specialization, the importance of operational efficiency, and how a focused approach can provide a hedge against market cycles. Timestamps: 00:00 Introduction to Niche Investing in Real Estate 00:25 The Shift from Traditional Asset Types 01:13 Specialization and Strategy in Niche Investing 02:26 Benefits of Focused Market Presence 04:18 Operational Efficiency in Niche Markets 05:39 Investor Confidence and Market Expertise 06:12 The Power of Conviction in Niche Investing

In Episode 65 of Durable Value, Ryan and Joe discuss the advantages of investing in secondary and tertiary markets compared to larger gateway cities. Our latest research, led by Ryan, debunks common misconceptions, illustrating the long-term stability, diverse economic drivers, and higher cash flow potential of smaller markets. These markets offer less competition and lower entry costs, producing strong returns while mitigating risk. And data reveals these types of markets are more resilient during economic downturns. 00:00 Introduction to Secondary and Tertiary Markets 00:24 Debunking Misconceptions About Smaller Markets 01:32 Key Advantages of Investing in Smaller Markets 02:10 Economic Drivers and Market Stability 03:38 Impact of Remote Work and Population Growth 04:17 Economic Volatility and Market Performance 06:20 Challenges and Friction in Smaller Markets 07:51 Leveraging Expertise in Medium-Sized Cities 08:32 Final Thoughts and Report Insights

In this Episode, Joe and Ryan discuss the intricacies of managing risks during a downturn in the real estate market. They discuss the importance of focusing on cash flow, especially in challenging economic times, and the strategies they use to ensure stability and growth. This episode covers their approach to conservative debt, the necessity of having reserves, and the impact of market cycles on risk tolerance. They also highlight their shift in deal strategy, including walking away from deals that don't pencil out, and the importance of thorough due diligence. They also discuss the importance of effective property management, diversification across markets and tenants, and the positive trends in the office and industrial sectors. It is key to remain disciplined and selective while still finding great opportunities in a downturn. 00:00 Introduction to the Real Estate Downturn 00:28 The Importance of Cash Flow 00:58 Adjusting Risk Strategies 01:54 Conservative Debt and Leverage 02:28 Challenges in the Current Market 03:16 Risk Aversion and Management 03:57 Diversification and NOI Growth 04:53 Positive Outlook and Future Opportunities 05:37 Conclusion and Strategic Focus

Ryan Swehla from Graceada Partners shares his presentation for UC Berkeley Haas Business School's executive education program for public pension trustees. His presentation goes over the Graceada Partner's strategies, focusing on core, value-add, and opportunistic approaches. He explains the benefits and characteristics of these strategies, discusses their role in a diversified investment portfolio, and highlights the importance of private real estate in achieving higher returns with lower volatility. Timestamps: 00:00 Introduction and Background 00:50 Why Invest in Real Estate? 01:12 Understanding Low Correlation 02:37 Efficient Frontier and Illiquidity Premium 04:56 Real Estate Strategies Overview 05:16 Core Real Estate Strategy 05:32 Value Add Real Estate Strategy 05:54 Development or Opportunistic Real Estate Strategy 07:42 Management Styles and Compensation 08:46 Market Cycles and Leverage 14:05 Sponsor Types: Operator vs Allocator 15:35 Conclusion and Key Takeaways

In this episode of the podcast, Joe Muratore of Graceada Partners, sits down with Greg Campbell, a seasoned advisor, investor, and board member with an extensive and fascinating career. They discuss their long-standing professional relationship, spanning almost a decade, and explore Greg's contributions to Graceada Partners' growth and success.Greg shares valuable insights on leadership, focusing on the importance of understanding the "why" behind actions, the concept of the "both and," and the critical role of culture, listening, and affirmation in effective leadership. He also recounts his experience turning around the Coldwell Banker Corporation, illustrating the power of intentionality and cultural influence in driving business success.The episode highlights the importance of continuous improvement, making tough decisions, and the balance between affirmation and challenge.Chapters: 00:00 Introduction and Welcome00:48 Reflecting on Early Days 02:01 The 'Both And' Philosophy 03:53 Defining Leadership and Culture 07:52 Turning Around Coldwell Banker 10:27 Mentorship and Legacy 16:04 Building a Strong Board 22:23 Final Thoughts and Book Recommendations

Ryan Swehla from Graceada Partners speaks with Lori Torres, serial CEO and entrepreneur and founder of Parcel Pending.00:00 Ryan introduces Lori Torres, founder of Parcel Pending00:31 Lori's Early Career and Transition to Multifamily01:52 Founding Parcel Pending03:01 Challenges and Successes in Entrepreneurship06:33 Mentorship and Building a Support Network13:19 Lessons from the Irvine Company17:01 Life After Exit and Advisory Role20:02 Final Thoughts and Advice

Ryan Swehla from Graceada Partners interviews Paul Dolinoy, a member of Graceada's advisory board and long time member of the NYSTRS real estate committee, who shares his professional journey in real estate investing over the past 50 years. He discusses the evolution of institutional investing, the changing landscape of real estate investment, lessons learned from his career, advising emerging managers, and advice for newcomers.

This episode, hosted by Joe Muratore and Ryan Swehla focuses on the unique investment strategy of targeting secondary and tertiary markets in the Western United States. They discuss the potential for investors to capitalize on a $1.6 trillion opportunity in apartment and industrial building markets across the West. Drawing parallels with the In-N-Out Burger's expansion model, they explain how strategic geographic expansion along major North-South highways (I-5, I-15, I-25) can create brand and staffing synergies and lead to high growth and high return on investment due to the inefficiency and lack of competition in these markets. Joe & Ryan envision expanding from their current presence in seven states to a broader footprint that captures a significant share of the market. The conversation concludes with future growth expectations and an invitation for more investors to join their journey to 'Own The West' with a strategy that promises higher returns by navigating these less competitive, yet populous markets efficiently.

As Graceada Partners approaches 15 years in business - Joe & Ryan discuss their friendship and broader business partnership that spans 40 years (going all the way back to and a seventh grade incident that resulted in a dual suspension). From real estate negotiations to the challenges of starting a business at the onset of a global financial crisis, Joe & Ryan reflect on the valuable lessons learned along their journey.

Joe & Ryan discuss the concept of value add real estate investing and its role in a portfolio. They explain that value add real estate investing involves buying properties with a specific plan to create the most value as quickly as possible, resulting in higher returns compared to a cash flow-oriented approach. They highlight three reasons to consider value add investing: it is an uncorrelated high return strategy, it provides control with risk mitigation, and it offers a passive investment option. Joe & Ryan emphasize that real estate is different from the stock market and can act as an inflation hedge. They also discuss the benefits of working with a specialized group like Graceada Partners for value add real estate investing in secondary and tertiary markets. They highlight the efficiency and opportunity in these markets and the importance of their integrated approach that includes property management, construction management, and asset management. 

Jeff Burrow, founder and lead advisor at Sierra Ocean Custom Wealth joins Ryan Swehla to share his point of view and background from starting out on Wall Street at 22 to founding his own RIA firm in Ripon, CA.

In this excerpt from our recent investor meeting, Joe Muratore shared the firm's plans for 2024 including targeted geographies, asset class, and more. Learn firsthand what strategies will be employed and why Graceada Partners has cautious optimism when looking forward to 2024 and beyond.

 Joe Muratore from Graceada Partners speaks with Nathan Torinus, CFP®, MBA, the founder and CEO of TOR Wealth Advisors. Nathan specializes wealth advisory to business owners and high-net-worth families. Today he talks about how Graceada Partners and similar companies help him to provide smart investments with unique diversification for his clients, and how his clients appreciate this on a financial level, but also a creative level.Watch the episode on YouTube https://youtu.be/d0RRa5Kt01I

This episode of Durable Value features guest Steven Weintraub, co-founder and advisor with West Coast Financial, a registered investment advisor. Steven shares how RIA's are able to find creative investments that focus on less traditional metrics like risk tolerances.

Joe & Ryan discuss how they see rising rates impacting the Commercial Real Estate market, how it affects the firm's strategy going forward, and what changes they see on the horizon.

Joe & Ryan discuss their journey from just starting out in the midst of the 2008 GFC to where Graceada Partners is at today, and how the current challenges differ from the previous ones.

Joe and Ryan discuss the current market outlook and how it affects their strategy going forward.  They talk about the risks they see in the market, and how supply, tenant affordability, and the sensitivity of secondary and tertiary markets affect their business.

Joe and Ryan share their view on the current investing landscape.

We find the value-add investing strategy to be the least risky and so we've put a lot of energy into developing processes around this method. In this episode of Durable Value, Joe and Ryan share more detail around the firm's approach and why we think it will be a strategy that has longevity.

Joe and Ryan discuss how they try to build resilience in the organization.

Joe and Ryan discuss how they identify patterns and trends when looking for markets that fit the firm's investing thesis.

Joe and Ryan discuss the firm's philosophy and strategy around building off-market pipelines in secondary and tertiary markets.

Joe and Ryan share their thoughts on finding opportunities in inefficient markets and how inefficient markets are at the core of Graceada's investing thesis.

Joe and Ryan share their thoughts on where the market is headed in 2023, and how it might affect strategies and Graceada Partners' business as a whole.

With most investors thinking about ways to mitigate tenuous market shifts, some may be reevaluating the makeup of their portfolio. In this episode of Durable Value, Joe and Ryan discuss where Commercial Real Estate might fit.In this EpisodeReal Estate Private Equity definedDifferences between private equity and cash flow investingPros and cons of equity investingHow does inflation affect private equityHow does the stock market affect private equityHow does investing in a private equity fund work?

It's on the tip of every investor's tongue: where are markets headed? Graceada Partners started during the global financial crisis in '08. In this episode Joe and Ryan share the specific ways Graceada Partners is proactively set up for uncertainty.

Joe & Ryan talk through the current uncertain market situation and how they approached the last financial crisis back in 2008 which was also the year they founded Graceada Partners!

Brandon Rebiero is co-founder of Gold Leaf Farming, a farming and investment company focused on owning, operating, and acquiring agricultural assets in California and Arizona. Brandon shares insights around due diligence, the parallels between agricultural investing and CRE, and how Gold Leaf has utilized the Entrepreneurial Operating System (EOS) to grow rapidly.

Joe and Ryan delve into the specifics of their investing strategy.

Knowing when it's time to sell a property isn't easy. Over the years we've fine-tuned our approach to knowing when it's the right time for us and our specific strategy and market.

Joe and Ryan discuss the key ingredients needed before purchasing real estate in a new market.

To some, the office asset class is a "four letter word". In this episode we share why we still view office positively and how we're pivoting to make sure our office properties are meeting the needs of tenants post-covid.

We talk about our Monday morning meetings which happen every week at the same time and follow the same structure. These "Level 10" meetings set the tone for the week and make sure our mission and values are at the forefront of the week's decisions.

Joe and Ryan share how they've built a team that challenges them daily.In this episode:How to create an environment that fosters mentorship.Being realistic about one's own shortcomingsWhy we keep our core values at the forefront of decision-makingWhy we pursue “stunning colleagues” that challenge one anotherHow to foster continued learningHow approaching internship programs can create a talent funnelWhat cross-functional shadowing is and how we're employing itWhat “mentoring up” meansWhy it's important to blend business and community goalsReflecting on how mentorship affected our outlook

We bought 148-unit apartment complex Westlake Apartments a little over a year ago for $23,500,000. Now after selling it for $38,050,000, we'll dive in and share the dynamics of the acquisition (including what worked well and what didn't).

Joe and Ryan talk about the importance of testing and how they approach testing different strategies across the Graceada Partners portfolio.

What might have been temporary work-from-home is now permanent for large swaths of employees, particularly those at tech companies. Both employees and employers have shifted to current and budding secondary markets where better quality of life waits. In this episode, we dive into the 5 main effects we're seeing.

One of our core values is "Extreme Ownership" and in order for our team to be able to take ownership of their goals and tasks, they have to be given autonomy. Joe and Ryan talk about how they are doing this at Graceada Partners.

Joe and Ryan walk through the specifics of a recent property acquisition from start to finish.

Joe and Ryan discuss the movement out of urban areas and into secondary markets. How many people actually relocated? The pandemic led to many people undergoing more drastic life changes like career changes, new home, new state, etc. As this migration winds down there are clear trends we're seeing in our immediate geography and throughout the country.

Joe & Ryan get candid as they discuss their approach to hiring a great team.