David Gellner

Starbucks and Seattle Can you name a more iconic city and business duo than these two? Excited to officially bring to market this Starbucks in Seattle! Here's what we love about this deal and what makes it such a rare opportunity: * Drive thru with a Seattle address! - Ask any developer about the difficulties of developing a free-standing building with a Seattle address and they will tell you it is EXTREMELY difficult. With recent zoning code updates and neighborhood initiatives highly favoring for mixed use development, this very well could be the last free-standing drive thru built in the area. * According to Placer.AI this is the #2 most visited Starbucks in Seattle With very little coffee competition in the area this Starbucks drive thru is the place to be in the morning before heading to work. *Rare Starbucks Community Store Have pride of ownership knowing that this Starbucks is a rare "Community Store" which is part of the company’s initiative to invest in specific communities across the U.S. to creating local jobs, partnering with area nonprofit organizations to provide in-store job-skills training for youth, and working with local women- and minority-owned contractors, suppliers and vendors. Reach out to @ParkerKsidakis and I if there are any further questions or interest. Here is a link to the OM: crexi.com/properties/1516199…

👀 A lot of people are going to lose a lot of money over this. Many investors of REITs should also review their company's holdings as well. Certain REITs will have a fairly large amount of exposure to this news. "Walgreens will close a significant share of its roughly 8,600 stores in the U.S., Wentworth said in an interview with The Wall Street Journal. The company hasn’t settled on a final number of locations to close, he said, but it is reviewing about a quarter of its stores that aren’t profitable and could shutter a “meaningful percent” of those over the next few years."

Today was my Dad’s 71st Birthday He’s always wanted to visit New York City but would never spend the money on himself to go. Tonight we surprised him with his dream trip that leaves in 3 weeks. Any recommendations for the best things to do, see and most importantly eat?!

The market for Strip Retail is not the same as Net Leased. In fact, the current pricing dynamics are almost polar opposites. Net leased has a glut of inventory and is largely over-supplied. Strip centers, conversely, are scarce and there is little quality product on the market. The result is that unanchored retail pricing has changed very little since the peak of 2021-2022. Supply and demand has kept pricing largely intact, despite the historic rise in interest rates. My prediction is twofold. Over the next 18-24 months, we will see interest rates come down by 1-1.5%. Secondly, loan maturities will increase significantly, forcing owners to refinance or sell. The result? More strip product will become available (increased supply), mostly nullifying the forecasts of lower cap rates. Is it a good time to sell your strip center if you are an owner? It sounds self-serving for us brokers to say yes, but what I can say is that you will absolutely get offers and pricing is not far from the record levels we experienced a couple years ago. #stripcenters #essentialserviceretail

BREAKING: "Roaring Kitty" is set to be a billionaire as GameStop stock, $GME, surges to $67.50/share in after hours trading. If $GME opens at or above current levels tomorrow, his shares will be worth ~$325 million and options worth ~$700 million for a combined ~$1 billion. That's an $850 million gain on his position.

What's the biggest surprise from this list? Fast Food: Avg Annual Sales a Restaurant Portllios: $9.1m Chick Fil A: $7.5m In-N-Out: $7m-8m Raising Canes: $6.0m Shake Shack: $3.8m Whataburger: $3.7m McDonalds: $3.6m Culvers: $3.3m Panera: $3.2m Chipotle: $2.8m Krispy Kreme: $2.8m Zaxbys: $2.6m Panda Express: $2.3m El Pollo Loco: $2.1m Bojangles: $2.0m Wendys: $2.0m Dutch Bros: $1.9m Taco Bell: $1.9m Crumbl Cookies: $1.8m Jack in The Box: $1.8m Popeyes: $1.8m Five Guys: $1.7m Starbucks: $1.7m Del Taco: $1.6m Burger King: $1.5m Carls Jr: $1.5m Qdoba: $1.5m KFC: $1.3m Dominos: $1.3m Arbys: $1.3m Jersey Mikes: $1.2m Dunkin: $1.2m Papa Johns: $1.2m Hardees: $1.2m Moes: $1.2m DQ: $1.1m Pizza Hut: $1.0m Church's Chicken: $935k Firehouse Subs: $924k Jimmy Johns: $900k Little Ceasars: $860k Subway: $510k Baskin Robins: $300k For more business content just like this, make sure to follow @TripleNetInvest

What every voter should know about housing policy 1. Rents reflect the balance of supply of apartments and demand for those apartments in a given area. That’s it; there’s no magic. If you want lower rents, you can hope for a recession that destroys jobs and, therefore, demand. Or you can add supply. 2. There is no amount of money that any big city government could feasibly spend that would add materially to supply. This is because, depending on the location, new apartments cost $250,000-1,000,000 to develop… building even a few hundred of those starts to stress any city budget, and many big cities need tens or hundreds of thousands. 3. On the other hand, investors (including pension funds and endowments, insurance companies, rich families, etc.) can collectively **easily** provide enough capital to build as much housing as we need **so long as they are confident they can get a reasonable return**. To get those investors to fund the creation of the housing our society so desperately needs, we must do two things: 1. Dramatically reduce the time & complexity associated with securing governmental permission to develop housing. This means reviewing and simplifying the overlapping regulations that constrain housing production: zoning codes, building codes, parking, ADA, etc. But it also means changing the cultures within the relevant governmental agencies from “default no” to “how can we help you?”. 2. Provide certainty around on-going regulation of apartment operations. The way investors get a return from building rentals is as follows: They hire managers to lease the apartments, collect the rents, pay operating expenses and any mortgage payments, and then send the investors the cashflow that remains. But governments all over the country have been restricting the manner in which apartment buildings can be operated in all kinds of ways. For example: Cities have been making it harder to screen tenants, while also making it much harder to evict tenants who don’t pay. You can see why both of those measures are politically popular. After all, who doesn’t want people to get second chances? And who wants anyone to get evicted? But, as a manager, the combination of those two regulations makes it much harder to predict, with any certainty, that the rent will get paid… and that makes it very difficult to get investors to provide capital to create more housing. Another example: Rent control. Again, I understand why renters love rent control and why politicians want to give it to them. But, if, as has been the case in NY, LA and San Francisco, city governments hold annual rent increases below the rate of growth in the operating expenses of the buildings, the cashflow payable to the investors shrinks… making them much less likely to invest capital in building more apartments. In conclusion: For ~every other good or service in the economy, we allow the market to function, and the result is that we have a surplus of choice at all price points (think of food or clothes or cars), which is spectacular for the consumer. If we want a surplus of choice at all price points in housing, we need to get comfortable with the idea of allowing the market to provide it. And that means allowing investors to build rental apartments *and* allowing them to operate those apartments in a manner consistent with making a reasonable profit.

Costco’s new CFO just did his first earnings call. During the opening remarks, he had to mention that the $1.50 Hot Dog deal is safe. Incredible commitment to the bit.