Durable Value: An Investor's Podcast: Recent Episodes
Graceada Partners
Commercial Real Estate Veterans, Joe Muratore and Ryan Swehla, demystify Commercial Real Estate Investing with an inside look into the strategies they use on a day-to-day basis at their company: Graceada Partners.
In this episode of Durable Value, Joe and Ryan discuss how most institutional investors skip secondary and tertiary real estate markets; but what if the "perceived risk" is actually lower than primary markets? Here we break down the data behind secondary market investing: why volatility is lower, why liquidity is stronger than you'd expect, and why institutional capital clustering in gateway cities may be the real risk. We also share a real-world example of selling an office building in 2026, and generating a 16% gross IRR, to prove the thesis.
0:00 – Introduction: Secondary Markets & The Risk Mispricing Thesis
1:28 – The 20-Year Data Study (GFC, COVID, Rate Hikes)
4:36 – Institutional Capital as a Predictor of Oversupply
5:07 – Why Capital Clusters in Primary Markets (Career Risk & Benchmarks)
7:01 – The Liquidity Myth: Where Transactions Actually Happen
8:04 – Are Secondary Markets Becoming Institutionalized?
11:34 – How to Execute: Macro Trends + Local Boots on the Ground
In this episode of Durable Value, Joe and Ryan join Matt Slepin on his podcast, Leading Voices in Real Estate, to share how they built a real estate firm by investing where institutional capital rarely goes.They break down why secondary and tertiary markets outperform the headlines, how they source off-market deals, and what "lower middle market private equity" looks like in real estate.
0:00 – Introduction & episode preview
0:14 – Meet Joe & Ryan: Co-founders, 40-year friendship, and the origin of Graceada
4:12 – Business overview: multifamily + multi-tenant industrial, $1B AUM, vertical integration
4:44 – "Secondaries are the new primaries" — the thesis behind Western US secondary & tertiary markets
18:10 – Off-market deal sourcing: the reverse funnel, broker relationships & 20 offers per close
28:10 – Debunking 3 misconceptions: liquidity, performance, and volatility in secondary markets
41:12 – Real deal breakdowns: The Lofts (232 units, Fresno) & Elk Grove Industrial
1:06:14 – Advice for young people entering real estate & lessons from a 40-year partnership
In this episode of Durable Value, Joe and Ryan break down the parallels between the 2008 Global Financial Crisis and today's commercial real estate environment and, more importantly, what actionable steps investors should be taking right now.
Timestamps:
0:00 — Intro: GFC vs. Today's Market Overview
2:06 — It's a Financing Problem, Not a Real Estate Problem
3:30 — Cap Rate Expansion: Then vs. Now
5:13 — Where We Are in the Distress Cycle (Early Innings)
8:19 — The Winning Playbook: Liquidity, All-Cash Deals & Staying Power
10:36 — Why Secondary Markets Are More Insulated
13:03 — Key Lessons: Buy Well, Use Conservative Leverage, Grow NOI Fast
In this episode of Durable Value, Ryan sits down with Jen Stevens, co-founder and managing partner of Alliance Global Advisors, to discuss what it takes to build an institutional-caliber real estate investment firm. Jen shares her 17-year journey at the Townsend Group, the founding story of Alliance, and how they've helped over 50 real estate managers — collectively overseeing a trillion dollars in assets — compete and grow. From emerging manager strategy to private wealth distribution, alignment of interest, and career advice, this episode is packed with insight for anyone in the real estate investment industry.
0:00 – Introduction: Meet Jen Stevens & Alliance Global Advisors
0:49 – Jen's career begins at the Townsend Group (2004)
2:50 – The founding of Alliance Global Advisors in 2020
3:56 – What Alliance does: Advising GPS to become better partners
5:54 – 50+ managers advised, over $1 trillion in AUM served
7:27 – Pennsylvania PSERS commits $90M to Fund IV: A milestone moment
13:05 – The case for specialization in real estate strategies
16:01 – Core vs. non-core real estate: Understanding the bifurcation
16:52 – How core real estate fits (and is shifting) in institutional portfolios
21:12 – Lessons from the GFC: Vintage year diversification & tactical investing
23:06 – The changing capital base: Why every manager must think about private wealth
26:16 – Private wealth real estate allocation: Still in early innings
29:21 – Building Alliance's private wealth expertise: Hiring Kurt Edwards
31:39 – Alignment, transparency & governance for emerging managers
33:21 – What true transparency looks like with institutional investors
34:28 – Alignment of interest: Compensation, succession planning & investment committees
37:59 – Career advice: Stay true to your values and your purpose
39:30 – The power of being close to the capital (and the customer)
What does it actually take to go from friends-and-family syndications to managing capital for public pensions? In this episode, we pull back the curtain on our 17+ year journey to becoming an institutional investment manager — the mindset shifts, the organizational overhauls, the patience required, and the champions along the way who made it possible.
If you're an emerging manager trying to level up your capital stack, this one's for you.
In this episode:
Why the Inland West secondary & tertiary markets represent $1.8 trillion in largely untapped opportunity
What it really means to go from syndications to funds — and why most operators stop there
The cultural and organizational transformation required to attract institutional capital
How to find your champions inside large pensions and family offices
Why sticking to your core focus is the single most important thing a manager can do
Timestamps:
0:49 — From real estate brokers to institutional managers: how it started
2:18 — Syndications vs. funds: the leap most operators don't make
3:24 — Working with Alliance Global Advisors to build institutional infrastructure
7:46 — People, not organizations, make decisions: the role of champions
10:36 — The mindset shift from deal-by-deal urgency to institutional long-game
Ryan Swehla joins Institutional Real Estate Americas to share Graceada Partners' latest research on secondary and tertiary markets in the Western U.S. and the results may surprise you. From outperforming primary markets economically, to lower supply volatility and stronger liquidity than conventional wisdom suggests, Ryan breaks down why smaller markets deserve a closer look from institutional investors.
Timestamps:
0:00 - Intro
0:50 – Defining secondary & tertiary markets
1:58 – 20-year research: economic outperformance vs. primary markets
3:32 – Real estate performance comparison: values, occupancy & net absorption
7:17 – Transaction volume recovery & the role of private capital
10:38 – Liquidity in smaller markets: debunking the misconception
13:55 - Conclusion
In this episode of Durable Value, discover why multi-tenant industrial real estate is one of the most durable and overlooked investment opportunities in commercial real estate. Joe and Ryan break down what makes these smaller industrial parks such a compelling asset class. They explore the unique economics, supply constraints, and tenant diversity that create stable, long-term value.
Timestamps:
0:00 - Introduction: Multi-Tenant Industrial as Apartments for Industry
5:12 - The Value of Yard Space and Buying Below Replacement Cost
7:49 - The Heartbeat of America: Why Communities Need Small Bay Industrial
8:35 - Tenant Diversity vs. Single-Tenant Risk
10:01 - Why Multi-Tenant Industrial Is Becoming Institutional
In Episode 89 of Durable Value, host Ryan Swehla sits down with Matt Slepin, Co-Head of Real Estate at ZRG Partners, to unpack what great leadership and succession really look like in today’s real estate industry. Matt shares his fascinating 25-year journey in executive search, from lobbying for low-income housing to building and selling his own firm. We dive into the real succession challenges facing today’s real estate leaders, the institutional rise of multifamily, and how AI and technology are rewriting the playbook for talent and decision-making in the industry.
00:00 - Introduction
02:30 - From Lobbying to Real Estate Development
05:45 - Career Interruptions & Finding the Right Fit
13:20 - How Multifamily Became Institutional
18:30 - The Rise of Specialty Asset Classes & REITs
24:00 - Entrepreneurship & Starting Terrace Search Partners
29:45 - Succession Planning Challenges in Real Estate
34:15 - The Sale to ZRG Partners
38:30 - Benefits of Joining a Larger Firm
42:00 - Semi-Retirement & What's Next
45:15 - AI, Technology & The Future of Real Estate
51:30 - Advice for Real Estate Careers Beyond Deal-Making
56:00 - Final Thoughts & Closing
In this episode of Durable Value Podcast, Ryan Swehla is interviewed by Brandon Sedloff from Juniper Square Distribution. Ryan and Brandon discuss the private equity real estate strategy of Graceada Partners, focused on secondary and tertiary markets in the Western United States.
Ryan shares his journey from Wall Street to Modesto, California, where he and his third-grade friend Joe built a $900M real estate investment firm. Learn about their contrarian approach to investing in overlooked markets, the infrastructure required to succeed outside major metros, and why they believe secondary and tertiary markets represent a $1.6 trillion opportunity.
Timestamps:
0:00 - Introduction & Welcome
0:42 - Getting Into Commercial Real Estate
1:41 - Growing Up in Modesto, California
3:21 - Columbia University & Wall Street Experience
5:32 - Starting in Real Estate & Business Partner Joe Muratore
8:04 - Why Real Estate? The Tangible Appeal
10:27 - Starting Graceada Partners in December 2008
12:00 - First Property Purchase & Early Growth
13:02 - The 2017 Pivot: From Asset Manager to Investment Manager
16:10 - Graceada Partners Today: 75 Team Members, $650M Assets Under Management
17:42 - Attracting Institutional Talent to Modesto
19:50 - Investment Strategy: Secondary & Tertiary Markets
21:50 - Defining Secondary vs. Tertiary Markets
23:25 - Why Institutions Struggle in These Markets
27:48 - Surprising Insights: Liquidity & Economic Performance
32:06 - The "In-N-Out Burger" Expansion Strategy
36:37 - The $1.6 Trillion Addressable Market
39:19 - Challenges: Building Infrastructure in New Markets
43:34 - Lessons for Emerging Managers
47:00 - Business Priorities & Core Values
About Graceada Partners:
Graceada Partners is a vertically integrated private equity real estate firm with $650M in assets under management, focused on multi-tenant industrial and multifamily properties in secondary and tertiary markets across the Western United States.
Welcome to the Durable Value Podcast! Host Joe interviews Matt LeDucq, CEO of Forum Mobility, about the electrification of trucking, the evolving power grid, and the impact on real estate and logistics. Dive into technology, policy, and the future of industrial development in the Western US.
Timestamps:
00:00 – Introduction & Matt’s background
02:00 – The intersection of real estate, power, and logistics
06:40 – How utilities work and why it matters
12:00 – The economics of electrified trucking
17:30 – Global trends: Electric trucks and battery costs
22:00 – Warehousing, population movement, and affordability
27:00 – Automation, autonomous vehicles, and the future of work
33:00 – Urban mobility and the future of car ownership
38:00 – Regional winners and losers in the Western US
44:00 – Analyst perspectives: Real estate vs. power costs
49:00 – The future of logistics and location strategy
52:00 – Final thoughts & takeaways
In this episode of Durable Value, we explore the concept of real estate—especially multifamily and industrial properties—as essential infrastructure. We discuss how these asset types function as a public good, their role in the economic grid, and why secondary and tertiary markets are becoming increasingly important. Tune in for insights on market dynamics, institutionalization, and the future of real estate investment.
Timestamps:
00:00 – Introduction
00:51 – Real estate as a public good: Housing and industrial as community essentials
01:15 – The “capillaries” of commerce: Small businesses and last-mile industry
01:36 – Real estate as a quasi-utility; the Western US grid analogy
02:30 – Institutionalization of secondary and tertiary markets
02:57 – Infrastructure as an investible asset class
03:22 – Needs-based assets: Comparing real estate to bridges and utilities
04:08 – Asset desirability vs. discretionary assets
04:31 – Monopoly vs. competition: Utilities and real estate supply
04:55 – The economics of new construction vs. existing apartments
06:34 – Demographic shifts: Millennials, Gen Z, and housing demand
07:21 – Post-COVID trends: Remote work and changing lifestyles
08:23 – Owning the grid: The I-5, I-15, and I-25 corridors
09:02 – The network lens: How properties reinforce each other
09:21 – Data-driven conviction and deal flow
09:42 – Building alpha through authentic data and off-market deals
In this episode, we break down the recent real estate downturn, what caused it, and the key lessons for investors. We cover interest rate impacts, the importance of cash flow, fixed-rate debt, and how to find opportunity in uncertain times. Whether you’re an experienced investor or just curious about real estate, you’ll find actionable insights here.
Timestamps:
00:00 – Introduction & Market Overview
02:00 – Lessons from the Downturn
05:00 – Cash Flow, Value Add, and Investment Strategy
08:00 – Debt, Risk, and “Pencils Down”
11:00 – Building Resilience & Optionality
In this episode, we dive deep into the concept of "the data is in the drywall" and how hands-on, property-level insights drive better decision-making in real estate. Ryan and the team discuss the importance of vertical integration, boots-on-the-ground intelligence, and blending physical experience with data analytics to gain a competitive edge. Whether you’re an investor, operator, or just curious about real estate, this episode is packed with actionable insights!
Timestamps:
00:00 – Introduction: What does "the data is in the drywall" mean?
00:46 – Real estate vs. financial trading: The physical difference
01:19 – How property-level data informs conviction and decisions
01:42 – Using big data sources vs. on-the-ground insights
03:09 – Making sense of signals: Applying experience to data
03:51 – Real-world examples: Move-ins, rent increases, and concessions
04:11 – Integrating third-party data with internal intelligence
04:58 – The intersection of data and physical real estate
05:25 – The balance: Unique assets vs. data models
05:46 – Real estate’s slow adoption of technology and data
06:16 – Embracing technology for better decision-making
06:36 – AI, local trends, and the future of real estate data
06:55 – The advantage of a manageable portfolio and boots-on-the-ground
07:23 – Training AI models and the ongoing value of human intelligence
07:48 – How actionable data drives decisions across the portfolio
07:56 – The ultimate goal: Creating edge through data in the drywall
08:16 – Less downside, more safety, and seeing what others don’t
08:45 – Why edge matters and how Durable Value keeps winning
In this episode of Durable Value, we dive deep into one of the greatest paradoxes in investing: the tension between detachment and conviction. How do you balance making data-driven, unemotional decisions with the need to act decisively and believe in your thesis? Join us as we explore real-world examples, investment committee dynamics, and the strategies that set world-class investors apart.
Timestamps:
00:00 – Introduction: The Paradox of Detachment vs. Conviction
00:24 – Defining Detachment and Conviction in Investing
00:47 – Risk, Conservatism, and the Two Schools of Thought
01:42 – The Power of Conviction and Attribute Scoring
03:13 – Data-Driven Decision Making vs. Gut Instinct
05:14 – Investment Committee: Balancing Conviction and Detachment
07:17 – The Reverse Funnel: Creating Opportunities
08:07 – Avoiding Auctions and Broker Funnels
09:14 – Building a Network for Inbound Deals
12:06 – The Ferris Wheel: Managing Multiple Offers
13:52 – Discomfort and Optionality in Deal-Making
15:32 – The Key to Success: Detachment Creates Conviction
16:53 – Acting Decisively and the Value of Detachment
Join us for a special anniversary episode of Durable Value as we reflect on five years of podcasting and 17 years in business together. Hosts Joe and Ryan share candid insights on personal growth, leadership, and the evolution of their company. From navigating market cycles and scaling a team to the enduring power of friendship and core values, this episode is packed with wisdom for entrepreneurs, investors, and anyone interested in building something that lasts.
00:00 – Introduction: 5 Years of Podcasting
00:24 – How We’ve Changed: Personal Growth and Reflection
01:52 – Building a Team and Shifting Roles
02:31 – The Value of Long-Term Partnership
03:08 – Lessons from 55 Acquisitions and Market Cycles
03:29 – Navigating Market Downturns and Building Resilience
03:55 – Embracing Leadership and Overcoming Imposter Syndrome
04:38 – The Spark of Joy in Building a Business
05:17 – From Surviving to Scaling: Process and Evolution
06:01 – The Importance of Boldness in Business
06:37 – The Story of the Podcast Chairs
06:57 – The Power of Showing Up and Leadership
07:18 – Market Shifts: Secondary Markets and Industry Recognition
08:24 – Scaling a Local Strategy to Institutional Level
09:03 – What Hasn’t Changed: Core Values and Company Purpose
09:59 – Improving Buildings, Neighborhoods, and Lives
10:46 – The Enduring Friendship Behind the Business
11:11 – How Relationships Evolve Over Time
11:36 – Looking Ahead: The Next 5 Years of the Podcast
12:35 – Staying Reflective and Visionary
13:05 – Final Thoughts
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
In this episode of Durable Value, we dive deep into a real-world case study: the acquisition, turnaround, and rebranding of The Lofts at Stadium Square in Fresno. Join us as we break down the sourcing, negotiation, due diligence, and execution that turned a struggling student housing property into a thriving multifamily asset. Learn about the challenges, strategies, and lessons from one of our most successful investments to date.
Timestamps:
00:00 – Introduction
00:22 – The Lofts in Fresno: Background & Rebranding
00:47 – Sourcing the Deal & Initial Challenges
01:35 – Appraisal, Pricing, and Negotiation
02:01 – Negative Cash Flow & Seller Motivation
02:46 – Our Approach to Buying & Negotiating
03:12 – Due Diligence: Process & Findings
04:34 – Repairs, Discounts, and Final Purchase Price
05:00 – Rebranding and Property Upgrades
05:25 – Creating a Resort-Style Experience
05:44 – Due Diligence: Uncovering Value
06:28 – Insurance Hurdles & Solutions
07:03 – Execution: Building the Right Team
08:09 – Turning Around Occupancy & Performance
09:04 – The Importance of In-House Management
09:40 – Stabilizing and Repositioning the Asset
09:59 – Value Creation & Broker Opinion
10:27 – Results: Cash Flow, Upside, and Lessons Learned
10:56 – Closing Thoughts
In this episode of Durable Value, we talk about the science of failure—why even great companies and properties can drift off course, and how to recognize and prevent the subtle missteps that lead to bigger problems. We discuss the difference between luck and skill in investing, the dangers of narrative reinforcement, and practical strategies for building resilience in your business. Whether you're a real estate investor, entrepreneur, or leader, you'll find actionable insights to help you avoid common pitfalls and turn failures into stepping stones for long-term success.
Timestamps:
00:00 - Introduction: The Science of Failure
01:26 - Luck vs. Skill in Investing
02:20 - Information Machines & Signal vs. Reality
02:57 - Luck as Skill: The Genius-Idiot Cycle
03:15 - Real Estate Market Cycles as Levelers
03:38 - Execution Engine: Buying the Right Assets
06:20 - Navigating Seller and Broker Dynamics
07:03 - Macro Understanding from Multi-Market Experience
09:05 - Short-Term vs. Long-Term Thinking
10:33 - Capital Pressure and Market Cycles
11:25 - Institutional Capital and Volatility
12:07 - Raising Capital in Down Markets
13:31 - John Boyd’s OODA Loop: Orienting to Reality
13:50 - Failure as a Path to Success
14:32 - Red Teaming & Pre-Mortems
15:12 - Building a Culture of Openness
15:39 - Rebuilding Systems for the Long Term
16:02 - From IRR to NOI: Adapting to a New Decade
16:22 - Building for Stability and Optionality
19:58 - Closing
In this episode, Ryan and Joe talk about an intriguing philosophical concept relevant to both life and investing: 'The Map is Not the Terrain.' The discussion touches upon creating mental models, the importance of conservatism in investing, psychological biases, misidentification of market cycles, execution friction, and much more.
00:00 Introduction to the Concept
00:30 Mental Models and Instagram Illusions
01:28 Mapping in Investments
02:49 Psychological and Mindset Factors
09:49 Execution Friction
13:25 Market Depth and Tenant Demand
18:12 Future Market Assumptions
21:29 Concluding Thoughts on Maps and Reality
In this episode of 'Durable Value,' host Ryan sits down with Larry Hass, a seasoned partner at DRB Law Firm, specializing in real estate law. They speak about Larry's extensive career, his transition from government roles at the SEC and Department of Labor to private practice, and the evolution of real estate investments over the last 50 years. The discussion covers the emergence of pension fund investments, the impact of regulatory changes, and the shifts in investment landscapes and property types over the decades. Larry also shares insights on the Pension Real Estate Association's role and offers advice for new entrants into the industry.
00:00 Introduction
00:28 Larry's Entry into Real Estate
01:17 Evolution of Pension Fund Investments
03:03 Impact of Regulatory Changes
04:47 Investment Banks and Opportunity Funds
08:22 The Role of Pension Real Estate Association
13:57 Globalization of Real Estate Investments
17:39 Changing Asset Preferences
19:25 Impact of Technological Advancements
20:33 Real Estate Cycles and Market Efficiency
25:30 Advice for Young Professionals in Real Estate
27:08 Conclusion
In Episode 76 of Durable Value, hosts Ryan Swehla and Joe Muratore talk about the essential framework for real estate investing, drawing on their experience to provide invaluable insights. They break down the three key legs that support successful investing: mastering strategic vision, balancing risk and reward, and excelling through execution. With real-world examples and practical advice, this episode is a must-listen for anyone serious about real estate investment.
00:00 Introduction
00:30 Mastering Strategic Vision
06:46 Balancing Risk and Reward
12:31 Excelling Through Execution
19:29 Conclusion
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 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 Introduction
00:17 Human Psychology and Loss Aversion
04:45 Market Psychology and Real Estate Cycles
07:15 Balancing Caution and Optimism
09:06 Advice for Younger Investors
10:01 Advice for Older Investors
12:00 Sensitivity Analysis in Investing
13:08 Strategy Over Tactics
14:28 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 Estate
00:55 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 Sachs
01:01 Navigating Market Cycles and Layoffs
01:58 Transition to Private Equity
02:46 Raising Capital and UBS Experience
03:09 Lessons from the Great Financial Crisis
07:02 The Misuse of Leverage in Real Estate
08:54 Lessons from the Navy
11:09 Fundraising Challenges and Successes
16:57 Advice for Aspiring Capital Raisers
17:46 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 Experiences
08:02 Insights from Brokerage Business
09:37 Advantages of Secondary and Tertiary Markets
13:41 Market Opportunities and Competitive Advantages
16:30 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 Introduction
00:37 Role and Responsibilities at UBS
01:44 Journey to Real Estate Research
04:24 Lessons from Past Real Estate Cycles
06:22 Current Real Estate Market Analysis
19:18 Impact of Institutional Capital
24:25 Opportunities in Secondary and Tertiary Markets
30:01 Advice for Aspiring Analysts
31:58 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 Welcome
00:48 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 Pending
00:31 Lori's Early Career and Transition to Multifamily
01:52 Founding Parcel Pending
03:01 Challenges and Successes in Entrepreneurship
06:33 Mentorship and Building a Support Network
13:19 Lessons from the Irvine Company
17:01 Life After Exit and Advisory Role
20:02 Final Thoughts and Advice
Ryan Swehla from Graceada Partners interviews Paul Dolinoy, a member of the advisory board, 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. He also shares insights into his personal hobbies.
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.
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 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 Episode
- Real Estate Private Equity defined
- Differences between private equity and cash flow investing
- Pros and cons of equity investing
- How does inflation affect private equity
- How does the stock market affect private equity
- How 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.
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 shortcomings
- Why we keep our core values at the forefront of decision-making
- Why we pursue “stunning colleagues” that challenge one another
- How to foster continued learning
- How approaching internship programs can create a talent funnel
- What cross-functional shadowing is and how we’re employing it
- What “mentoring up” means
- Why it’s important to blend business and community goals
- Reflecting 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.
Alliance Global Advisors is a women-owned consulting firm focused on empowering the institutional investment community to elevate best practices. Alliance bridges the gap between the investor and the investment management community. Advising clients with approximately $114 billion in assets under management, Alliance partners with organizations to provide an independent perspective and innovative approach on critical strategic initiatives. Our partnerships allow senior management teams to focus on what matters most: diligently managing client capital, creating value and delivering exceptional returns in a performance-driven market. Our combined experiences will help our partners learn about the changing needs of the Limited Partner, Consultant and Regulatory community. We understand the competition and aim to provide relevant, highly customized services to achieve significant results in any market cycle.
Heather Border
Co-Founder & Managing Partner
Heather Fernstrom Border is a versatile, performance-driven real estate professional whose broad experience helps organizations create new investment products, materials, corporate governance and overall Investor Relations goals and objectives.
Prior to forming Alliance Global Advisors, Heather was Managing Director for National Real Estate Advisors, and has held positions with Hunt Investment Management and The Townsend Group where she was responsible for assisting institutional clients in developing investment objectives, strategic planning, underwriting investments and capital raising.
She earned two Master of Science degrees in Finance and Real Estate and Construction Management, graduating Magna Cum Laude from the University of Denver. Heather earned a dual Bachelor of Science degree from Western State College in Accounting and Business Administration while playing collegiate volleyball. Throughout her career, she held memberships at the National Association of Industrial and Office Properties (NAIOP), Commercial Real Estate Women (CREW) and the Pension Real Estate Association (PREA). Heather is a current board member of Wellfit Girls and sat on the advisory board for Institutional Real Estate, Inc. (IREI) VIP Americas as well as various committees within the American Heart Association to which she has dedicated numerous volunteering hours.
Her professional experience includes fifteen years within private and public sector real estate and finance, during which she managed over $100 Billion of real asset allocations, developed, implemented and led the Investor Relations platform for a $7.5 Billion AUM Investment Manager with four product lines, and raised capital for multi-level managers on a wide range of real estate products.
Heather lives in her hometown, Naples, FL with her husband, Jay (retired military) and three children Jackson, Harrison and Madelyn. In her “free” time, Heather enjoys kiteboarding.
In Episode 21 of Durable Value, Joe & Ryan discuss their partnership and how they've made it work by playing to their individual strengths.
Joe and Ryan discuss how company culture went from being an afterthought to being a core part of Graceada Partners' business model.
When major corporations mandated large swaths of their workforce operate remotely, many employees relocated to areas more desirable to them. Perhaps closer to family, or lower rent, whatever the case may be the trend has drastically changed the commercial real estate outlook. In this episode, we talk about what we see changing and how we've adjusted our strategy in the asset class.
Billionaire Ray Dalio, is well known for articulating his investing philosophies publicly. Ray is perhaps most well known for what he calls "The Holy Grail of Investing", and in this episode, we talk about how we apply it to commercial real estate.
In our recent webinar, we shared 5 strategies that we're using in the office asset class. Even with remote work becoming the norm, office space isn't going away. In fact, we are acquiring more of it because we see collaboration and other office dynamics having a crucial role for many years to come.
Neal and Ryan discuss how company culture is formed from family and personal experience. Neal describes his upbringing and how the hard work of his elders shaped his work ethic and his ability to form a strong culture based on family, trust, and consistent, hard work.
In Episode 15 of Durable Value, Joe and Ryan discuss how they use experience in a certain geography to determine which markets and sub-markets will trend to their benefit in asset allocation.
Joe and Ryan talk about an unconventional way that they add value to buildings: Changing their culture. After acquiring buildings, they work to improve the tenant-landlord relationship and improve the association tenants and clients have with the buildings moving forward.
Joe talks w/ Dave Darmstandler, Co-Founder and CEO @ Datapath, a quickly growing IT Managed Service Provider in CA about growing your company through acquisition, building company culture with a dispersed workforce, and how his background informed his business philosophies.
Learn More About Datapath
mydatapath.com
By the end of 2021: What will work look like? Joe and Ryan discuss their predictions for the future of office space as laid out in their recent analysis titled “The Future of Work”
Learn more at Graceadapartners.com
Graceada Partners co-founders Joe and Ryan talk about how they scaled their business gradually and pivoted their offerings over the years.
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On this week's episode, Ryan interviews Arik Levy, the entrepreneur behind Laundry Locker and Luxer One, which he scaled to over $40 million and 200+ employees before selling. Arik and Ryan discuss wealth management, finding business opportunities by solving problems, and how to network with other entrepreneurs.
Learn more at graceadapartners.com
Daniel Weisfield is co-founder of Three Pillars Communities and specializes in Mobile Home Parks. Daniel talks with Ryan about leaving his job working with Fortune 100 clients at a top firm to start his own company focused on acquiring and improving mobile home parks around the US.
Learn more at graceadapartners.com
Meaningful relationships are especially crucial in the world of commercial investing. In this episode of Durable Value, hosts Joe Muratore and Ryan Swehla, principals at Graceada Partners talk about how mentors, advisors, and friends have deeply influenced how their business looks today.
Learn more at graceadapartners.com
"Does this building have the problems that we are outstanding at solving?"
In Episode 7 of Durable Value, Joe and Ryan discuss investing discipline, how to develop it, and how it should inform your evaluation of commercial properties.
Learn more at graceadapartners.com
On Episode 6 of Durable Value, Joe talks w/ Ali Nadimi, Managing Director at Newmark Knight Frank in Sacramento. Ali talks about how his family fled Iran during its revolution and how his unique background influenced his approach to Commercial Real Estate Brokerage.
Learn more at graceadapartners.com
On Episode 5 of Durable Value, Joe talks w/ Kasey Cotulla, Owner of Delta Print Group in Sacramento, CA. Kasey talks about how he built one of the largest printing organizations in the US. Starting as a janitor, Kasey has decades of experience in the print industry and discusses his approach to investing.
Learn more at graceadapartners.com
Hosts Joe Muratore and Ryan Swehla discuss their "Why" and how they've embedded in the structure of the company and have allowed it to guide their operations.
Learn more about Graceada Partners at graceadapartners.com
Hosts Joe Muratore and Ryan Swehla discuss the "Three Legs of the Stool" concept and how it applies to Commercial Real Estate.
Learn more about Graceada Partners at graceadapartners.com
Hosts Joe Muratore and Ryan Swehla discuss how COVID-19 has affected their portfolio and what they're doing to strike a balance between being supportive of tenants while preserving cash flow for investors.
Learn more about Graceada Partners at graceadapartners.com
In the first ever episode of Durable Value: An Investor's Podcast, hosts Joe Muratore and Ryan Swehla talk about their longtime friendship and business partnership, seizing opportunities, making timely decisions, minimizing risk and more.
Learn more about Graceada Partners at graceadapartners.com