Sentinel Net Lease reposted this
Many thanks to Jack BeVier and Craig Fuhr for having me on the Real Investor Radio podcast to discuss opportunities and pitfalls in CRE investing in the current environment and what Sentinel Net Lease is doing to capitalize on market inefficiencies. Here's a link if you'd like to listen: https://lnkd.in/gevzHz9A
83% of CEOs expect their company to completely end remote work within 3 years. This shift is firmly underway and we see incredible opportunities in the office sector. Market and media sentiment around office is stuck in 2020-2021. That fallacy creates huge opening for savvy investors. Sentinel is delivering stable cash-on-cash returns that outperform your high interest savings account. Here's how we do it: 1. Aquire properties at a significant discount to replacement cost 2. Lock in long-term, stable leases with high-quality tenants 3. Deliver superior risk-adjusted returns to our investors -- Reach out to chat with our co-founder Dennis Cisterna about how we can put your money to work in the biggest opportunity in commercial real estate.
“Time to get your butt back in the office.” – Your CEO, probably Amazon announced that staff are to completely return to office (RTO) in 2025. This is a notable trend. - Boeing - Goldman Sachs - UPS - Tesla Are all following suit. Expect the list to grow substantially. According to KPMG’s 2024 CEO Outlook: — 83% of CEOs expect a full RTO within the next 3 years, up from 64% just a year ago What’s driving this? As job growth slows, employers are gaining leverage again. CEOs are betting that in-office collaboration will drive innovation and culture. The data backs this up: — 90% of CEOs plan to reward employees who RTO with promotions and key assignments For commercial real estate, this signals fresh demand for high-quality offices. The office is regaining importance as a strategic asset, especially as companies try to support culture and long-term growth. It’s one of the pillars of Sentinel's investment strategy. But productivity is playing a major role in this. Employees often argue they’re more productive at home - but is that really the case? On average, work from home productivity can be 30-40% lower compared to working in the office, particularly for jobs requiring collaboration and innovation (World Economic Forum). Anecdotally, visit your local pickleball court at 11am on a Tuesday and you'll wonder where all these 28-year-old retirees came from... Oh, the benefits of remote work! — What do you all think? Are leaders right to be calling their staff back? What does this mean for the CRE sector?
Here’s a word from our co-founder and Chief Investment Officer Dennis Cisterna on what the Federal Reserve’s rate cut means for the Commercial Real Estate Sector: "If sellers adjust expectations and price assets competitively, we may see a significant increase in transaction activity across the market. But if sellers hold on pricing—or worse, try to capitalize on lower rates by pushing prices higher—this could slow the expected uptick in deals." Follow Dennis for more insights on how to read the CRE market today. If you're interested in earning passive income from investments in commercial real estate, reach out to us.
Cheers to the Fed for its 50 bps rate cut! Here's what it means for commercial real estate: The general hope is that the market will begin to thaw. Lower borrowing costs, driven by a combination of rate cuts and declining Treasury yields, present an opportunity for investors looking to capitalize on better financing conditions. Keep in mind that treasuries had already dropped in anticipation of this cut. But the cut actually occurring makes this a little stickier than previous drops in treasuries when Powell mentioned cuts and then did nothing. Question is, will the transactional volume pick up? One critical factor will be how sellers respond. 50 bps doesn’t solve the problem when the bid-ask spread is this large. Sellers inability to meet the market has been a problem for the past two years. The “Survive ‘til 25” believers just got a tiny boost that *might* hold their faith a little longer. If sellers hold on pricing—or worse, try to capitalize on lower rates by pushing prices higher—this could slow the expected uptick in deals. But, if sellers adjust expectations and price assets competitively... We may see a significant increase in transaction activity across the market. The current environment offers potential, but it hinges on improved financing and realistic seller pricing. If both sides align, the CRE market could see meaningful movement in the months ahead. -- What do you think? Will we see an increase in transaction volume, or will pricing mismatches keep the market tight? Let’s discuss! Regardless, this is cause for some celebration. Salut!
➡️Are you commercial real estate investing curious? ➡️Do you want to learn how to earn passive income from investments in commercial real estate and how to navigate the current market? If you answered yes to the above, then you should register free today for tomorrow’s live educational webinar presented by Sentinel’s chief investment officer, Dennis Cisterna. Dennis will share how the company is capitalizing on market opportunity to provide risk-adjusted returns via Sentinel Opportunity Fund I. Have your questions ready for the Q&A session following the presentation. 🔗 https://lnkd.in/ePRm_ZVP
Congratulations to our very own Dennis Cisterna for being named a Net Lease Influencer of the Year for the second time running. We're very proud to see Dennis get recognized by GlobeSt.com, one of the real estate industry's most reputable journals. If you don't follow Dennis on LinkedIn, you're missing out. He regularly shares his knowledge and experience to his fast-growing audience of real estate professionals. His fresh, often contrarian takes on the future of office, insights on entrepreneurship, and clear outlining of the strategy behind Sentinel Net Lease have made him one of the leading voices in our industry.
Sentinel’s fundraising strategy is different from other funds. We’re raising capital for our $100MM Opportunity Fund via individual, accredited investors. And we’re already 42% of the way there. Here’s why we’re choosing Main St over Wall St: Most funds are beholden to institutional capital. Their investment mandate is driven by the demands of those capital allocators, not by the opportunities in the market. “I’ve spent most of my career working with institutional capital. While it was mostly fruitful, there were times we didn’t see eye to eye on certain acquisitions,” said our co-founder and CIO Dennis Cisterna. “I was confident in my thematic approach and wanted to buy dozens of deals they made me pass on. It ended up costing them hundreds of millions of dollars. This time, I'm building a better mousetrap for me and my investors.” Working with retail investors means: 1. We don’t deploy capital on artificial timelines 2. We're highly selective in the deals we pursue 3. Every invested dollar is personal to us Our investors place their trust in us to find asymmetric opportunity in the CRE sector. And we never take a single invested dollar for granted. That’s our promise to our investors. Interested? Reach out to us to set up a call.
Office investments are dead, right? Not if you know where to look. We just closed a deal that delivered a 1.9x return on invested capital to our investors. In just 22 months of ownership. Let that sink in for a moment… Here's how we did it: → Identified an institutional-quality asset in Springfield, MO → Purchased well below replacement cost → Maximized value through strategic operational management → Attracted a quality buyer (CoxHealth) with unique needs The result? A 45% IRR. But here's the kicker - this was an office property. Yes, the same asset class everyone's running from. While others flee based on headlines, we dig deeper. We examine each property on its own merits. This approach has paid off time and time again. In fact, we believe now is the best time to go against the grain. The market's fear is creating unprecedented opportunities. At Sentinel, we don't follow the herd. We unearth value others overlook. And in today's office market, there's plenty of hidden gems for those willing to look. — How are you approaching office investments in the current market? Are you seeing opportunities others might be missing?
We are thrilled to announce that Sentinel Opportunity Fund I has acquired its first property with the acquisition of The Juice Plus+ Company Global Headquarters, a Class A office property located in the Memphis MSA. Thank you to our partners for helping to get this across the finish line: Lauren (Podgorski) Merdinger I Snell & Wilmer I Partner Engineering & Science, Inc. I ServisFirst Bank I Anthony Cohen I Riley Rettig, MBA I First American Title I Allen Matkins Learn more about the fund by visiting www.sentineloppfund.com Interested in investing? Reach out to Laura Nguyen to schedule a call! Fred Lewis I Dennis Cisterna I Andrew Broeren I Ben Black I Daniel Hillman I Rachel Forbes I Laura Nguyen
We are really excited about the response we have received from current and new investors for Sentinel Opportunity Fund I. With our first acquisition closing tomorrow - our founding limited partner incentives will expire. If you’re interested in investing, please reach out to us and let’s see if we meet your investment objectives. Reach out to Laura Nguyen or Dennis Cisterna to learn how to secure your Founding LP status. www.sentineloppfund.com
24 hours to go... We've spent the past eight weeks telling anyone and everyone about the launch of Sentinel Opportunity Fund I. Tomorrow is our first closing. -We've crossed $35MM in commitments from over 100 different investors. -We intentionally have ZERO institutional investors. -We built a Wall Street caliber investment vehicle for Main Street investors. If you are looking for unique investment opportunities in this market that can outperform your high-yield savings accounts as well as other passive real estate strategies, consider Sentinel Net Lease. Our target annual cash-on-cash return is 8% to 11% from lease income alone, with distributions made quarterly. We are down to the last 24 hours for investors to commit capital to Sentinel Opportunity Fund I and gain Founding LP status, which includes a host of benefits including reduced fees for the life of the fund. DM me or visit www.sentineloppfund.com for more info.
