Thought Leadership

No doubt we have all enjoyed the classic holiday film It’s a Wonderful Life, and in my household more than once. To remind everyone, the plot is built around the Bailey Brothers Building & Loan business and George Bailey’s near-death experience only to be saved by an angel who seeks his wings by showing George what the world might be like without him and his community savings bank. Our Chairman Minutes would be remiss if we did not catch-up on the current day banking mess and its impact to the real estate industry and the potential offing of a new credit crisis.

Being in the real estate investment business I’ve always enjoyed sharing varied tidbits and learned experiences with my own kids. Our family are active hikers and outdoor enthusiasts, so the opportunities are plentiful to educate and lecture (as my wife messages) on the fascinating aspects of finance and investment. How could my family not want to hear more about the importance of multiples vs IRR’s, positive vs negative leverage, cap rate arbitrage, functional obsolescence, or portfolio construction while out on the trail?

Mom’s heritage as a Brit always framed my upbringing, whether through her colloquial expressions, her careful fiscal oversight or her discussions of wartime London and the foundational imprint it cast on her life. As I return from an extended trip to London, I am not only reminded of my own DNA but of the tremendous history of the island nation, its impact on the history of the world and on our own country.

As a kid growing up, like many of my generation, I watched some of the classic sitcoms including Father Knows Best and Leave it to Beaver. Aside from the varied lessons learned from the Andersons and Cleavers, I carried forward a dream of buying my own home and while not necessarily within a community such as Mayfield or Springfield, I did make my first purchase, a condominium in San Francisco, in 1984.

Last month I joined several of my friends to circumnavigate the island of Hawaii on a bike. Our group has regularly created these adventure trips to check-in on one another, assure our ongoing fitness and enjoy a new challenge.

My partners and I recently enjoyed a getaway weekend with our wives to celebrate our company’s evolution and recent successes. During our time we reflected upon our continued mission at Buchanan and the clients we serve. Amongst several topics, we discussed the significant growth and expansion of our investor group through the positive impact of Investment Advisors.

Today’s real estate headlines continue to highlight the realities of inflationary pressures, potential tax law changes, the inclusion of single-family rental (SFR) housing as an asset class and the most discussed office market transformation.

The pandemic changed life for so many people, as employees shifted to a work from home model and schools or other businesses temporarily shut their doors. In the past few months as vaccines have rolled out across the country, businesses are reopening and the world is beginning to return to normal.

I have the good fortune to participate on a local community hospital board where aside from experiencing the heroic conduct within the medical community, I enjoy gaining further knowledge about the tremendous advancement and innovation within the healthcare space.

We celebrated Buchanan Street’s 20th anniversary in 2019 and with it the excitement of achieving a mark in time that would assuredly bring with it structural certainty and predictability to our next chapters. And then 2020 struck...

Historically equity has been the component of a real estate borrower’s capital stack that has been the most challenging to procure. This capitalization reality often dictated more leverage as equity was expensive and diluted the real estate entrepreneurs take home profit.

By Ken Robertson: I, like you, have been inundated with economic data...opinion pieces from prognosticators...predictions from economists and nonstop news feeds. Yes, the virus has shaken the world with everyone hitting the pause button. What should we believe from this headline news? How should we make investment decisions going forward? What paradigm shifts will permanently change the way businesses are operating?