EP 221: Unlocking Value in Industrial Real Estate: Michael Ervolina on Industrial Small Bay and IOS Investments

The Gentle Art of Crushing It!

Summary

Michael Ervolina, founder and principal of Urvo Square, discusses his experience in the small bay industrial and industrial with outdoor storage asset class. He shares his background in finance and real estate, as well as the challenges and opportunities he encountered along the way. Ervolina explains the concept of industrial with outdoor storage and its appeal to businesses that require additional space for parking or storage. He highlights the advantages of investing in small bay industrial properties, including the lower risk and higher cash flow potential. Ervolina also provides insights into the due diligence questions investors should ask and suggests exploring prop tech as an interesting investment opportunity.

Keywords

small bay industrial, industrial with outdoor storage, real estate investment, value-add investing, triple net leases, due diligence, prop tech

Takeaways

1. Small bay industrial and industrial with outdoor storage are attractive asset classes with limited downside and strong fundamentals.

2. Investing in small bay industrial properties offers higher cash flow potential and a deeper tenant pool.

3. Triple net leases in the industrial space protect investors from increases in taxes and operating costs.

4. Due diligence questions for this asset class should focus on alignment of interests, downside protection, and understanding the tenant profile.

5. Exploring prop tech as an investment opportunity in the real estate industry can be promising.

Titles

1. The Potential of Prop Tech in the Real Estate Industry

2. Understanding Triple Net Leases in the Industrial Space

Sound Bites

1. "Small bay industrial and industrial with outdoor storage have limited downside and the most fundamentally strong asset class."

2. "Investing in small bay industrial properties offers higher cash flow potential and a deeper tenant pool."

3. "Triple net leases in the industrial space protect investors from increases in taxes and operating costs."

Chapters

00:00 - Introduction to Michael Ervolina and the Small Bay Industrial Asset Class

10:41 - Understanding Industrial with Outdoor Storage

19:18 - Advantages of Investing in Small Bay Industrial Properties

21:55 - The Benefits of Triple Net Leases in the Industrial Space

33:40 - Due Diligence Questions for Small Bay Industrial Investments

36:21 - Exploring the Potential of Prop Tech in the Real Estate Industry

RANDY SMITH

Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor