Erik Peterson is a Buyer Broker/Agent, Listing Broker/Agent, Landlord Broker/Agent, Tenant Broker/Agent, Transaction Coordinator with Equity Consultants. Erik has transacted 0 square feet with a value around 0. Currently, Erik has 1 listings available in Sacramento
Episode Highlights Here:
Erik
Do you believe that prudent underwriting will really dictate the future IRR that we see on assets?
Brett
What would you say the number one secret is to underwrite multifamily properties in today’s market? And what kind of resilience? Do people need to be practicing to make sure they’re not? You know, you know, catching a falling knife?
Erik
Absolutely. Great question. I think that’s a question that so many economists, so many of your acquisition teams are going through, you know, REITs, right now are trying to understand where their values lie. So I do believe that prudent underwriting will really dictate the future IRR that we see on assets. So you know, having a really conservative exit cap rate, having conservative rent growth, going forward, understanding, controllable, non controllable expenses, much better, it’s going to come over the next two years will come down to those groups that can have the experience and management and can adjust accordingly on their expenses, and teams, and then really drive that customer service from an asset perspective. So I think those will be major, major indicators of what who’s successful and who’s not,
Brett
you know, I’m seeing the larger deals, especially right, and this has always kind of been true. And I call it the Amazon effect, those that have vertically integrated management. You know, with local contract services, they go deep, you know, relationships, of course, with the broker relationships, and, you know, finding deals, underwriting deals and really performance. But it seems like those that have, you know, more units in a particular marketplace, they’re more likely to be able to pay maybe a little bit more, and or to be able to sustain changes that are going on, or at least do it in a more efficient way. So just talk about, you know, Sequoia equities. And, guys, I think it’s over 17,000 units, and how much that helps you guys to be able to weather the storms and buy deals and find deals and make them work.
Erik
Absolutely. So longevity in a marketplace is very important. Understanding the nuances associated in a changing market is really important. Economies of scale from a management perspective is very important. You know, having a team in place that is, then let’s, for lack of a better term not have, they’re very stable, they’re very happy. We do annual birthdays, corporate birthdays, so we just had somebody in 35 years with Sequoia equity. So to say that longevity within a company is important, it’s acquired from a cultural perspective, it’s very important. And we find that happy employees tend to provide happy housing, housing, happy tenants, for customer service tenants who are then happy, which then trickles down to the ability to have lower turnover. And then we have no savings and costs at the end of the day, that just translates to great operating profit to the investors.
Brett
Absolutely. That also probably means you can underwrite deals, and you’re understanding the deals, all the nuances, because you have the data, it’s direct data, right in those markets. So what markets are you guys focused on now? Maybe talk about a recent acquisition or a deal that you’re looking at now? What do you like about it? And maybe how has your underwriting even shifted? You know, as far as an exit cap rate perspective, what kind of interest rates you’ve seen on some of these quotes? And are you still buying? Yeah, absolutely.
Erik
Great question. So you know, we follow a lot of market dynamics. We use third party sources, there’s Reese yardie, matrix, Axio, metrics, Moody’s, etc, that compiles data and we track that data to identify key markets that have great employment trends that have great, low new development trends. So we’re not competing against high absorption markets. And we try to find, follow my net migration in various markets. So as we look at those that were hot in Denver, we’re showing Seattle MSA is strong right now. From a job’s perspective. We see that there are some pockets in the Midwest in the Sunbelt that are very strong. And we’re continuing to also you know, focus on areas where we already have management but have for picking off deals where there’s significant value add that can occur in some of those markets too.
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About Erik Peterson
Erik Peterson Walnut Creek, CA – October 1, 2020. Sequoia Equities, Incorporated, a Walnut Creek, CA based real estate investment and property management company with over 13,000 units under management, announced today the addition of Erik Peterson to the role of Sr. Vice President of Acquisitions and Business Development. Erik Peterson has assisted in Sequoia’s acquisition of $1.8B in assets over the last 17 years in his prior role as Director of Acquisitions at Capital Realty Advisors. In this new role, Sequoia will look to Erik to continue to seek long term investments to support the growth of the company’s operations into other Western U.S. markets beyond its current west coast footprint, as well as growth of its specialized third-party property management business.
Bill Brooks, President and CEO, shares, “Erik brings to our team the rare combination of integrity, market knowledge, drive for growth and the proven ability to make personal connections at any level of our organization. I am excited that Erik will be more directly assisting in the future growth of Sequoia.”
Erik Peterson, Sr. VP of Acquisitions & Business Development, said, “It is a privilege to be able to work closely with so many talented people within an organization committed to its employees, investors, and residents. In continuing the Sequoia mission, we desire to make significant strides in new acquisitions while offering a time tested and refined property management service to owners and residents.”
About Sequoia Equities, Inc.: Established in 1986, Sequoia has always remained committed to its mission of striving to make the ordinary a little more special by inspiring our employees and creating communities where people can expect more out of everyday life. Over 25,000 residents come home to a Sequoia community at the end of the day. Offering more than just great locations and comfortable residences, each community is managed by a team of professionals dedicated to creating customer experiences that are consistently memorable and truly referral-worthy. As a vertically integrated real estate company, Sequoia is currently seeking multifamily investments and offering property management services across the west coast.
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