POWERS

#283 - Levi Benkert - Founder & CEO of Harbor Capital - Building a Class B Industrial Empire in Texas

May 18, 2023
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ANECDOTE

Buying From Sellers Who Just Want Out

  • Levi bought a multi-tenant building from an owner who wanted out and was moving to Montana, paying $94/ft while last lease was $14/ft.
  • They converted gross leases to triple-net and captured outsized cap rates.
ADVICE

Buy Flexible, Avoid Niche Buildings

  • Avoid specialized industrial buildings that lock use to one purpose; prefer flexible layouts.
  • Seek tenants like third-party logistics, suppliers, and light manufacturing, not cyclical oil-and-gas reliance.
ADVICE

Finance Conservatively With Big Reserves

  • Use conservative leverage focused on strong DSCR and locked reserves, not just LTV.
  • Require multi-year interest and vacancy reserves and have lenders accept the playbook upfront.
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