The Importance of Relationships in Value Add Industrial Real Estate with Eric Ruehle

Industrial Insights

Eric Ruehle of West Harbor Capital discusses the company's background and their focus on the industrial real estate market. They specialize in value-add investments in the Southern California region, with a deal size of $10 to $50 million. Ruehle emphasizes the importance of relationships in the industry and the value of high barriers to entry, such as entitlement and zoning challenges. He also discusses the current state of the capital markets and the leasing market, noting that while there are challenges, long-term trends in the industrial sector remain positive.

Key Takeaways

• West Harbor Capital focuses on value-add investments in the industrial real estate market in Southern California.
• Relationships and high barriers to entry are key factors in adding value to properties.
• The capital markets are stabilizing, and there is plenty of equity available for industrial investments.
• Leasing fundamentals are softening in Southern California, but long-term trends remain positive.
• The company is optimistic about the future of the industrial sector, with strong tailwinds from e-commerce, manufacturing growth, and supply-demand imbalances.

Chapters

00:00 - Introduction and Background 01:20 - Founding of West Harbor Capital 03:16 - First Deals and Capital Partnerships 06:24 - Expansion into New Markets 08:01 - Regional and National Approach 09:06 - Favorite Markets and Market Dynamics 13:35 - State of the Capital Markets 15:54 - Leasing Fundamentals and Underwriting 18:09 - Bread and Butter Deals 23:12 - Adding Value and Exit Strategies 29:16 - Optimism for the Future of the Industrial Sector

Episode Resources

Connect with Eric Ruehle

• https://www.linkedin.com/in/ericruehle/
• https://www.westharborcap.com/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [e-mail]
• https://www.linkedin.com/in/justinbsmith