RE #149: Sean Sweeney - Deep Dive on How To Develop Infill Boutique Class-A MF Properties
Sean Sweeney is the Co-Founder of Hall Sweeney Properties, a Minnesota-based multi-family development company. On this episode, Sean talks about his journey working as a receptionist in the industry, navigating through the '08 crisis, and ultimately...
Sean Sweeney is the Co-Founder of Hall Sweeney Properties, a Minnesota-based multi-family development company. On this episode, Sean talks about his journey working as a receptionist in the industry, navigating through the '08 crisis, and ultimately founding his own firm.
Sean also breaks down the process of a ground-up development including what to look for in sites, bringing on architects and contractors, his passion for design, terms to look for in contracts, property management, and stabilization. Enjoy!
Follow Chris on Twitter: www.Twitter.com/FortWorthChris
Learn more about Chris Powers and Fort Capital: www.FortCapitalLP.com
Follow Chris on LinkedIn: www.linkedin.com/in/chrispowersjr/
Follow Fort Capital on LinkedIn: www.linkedin.com/company/fort-capital/
Sean on Twitter: www.Twitter.com/SeanDSweeney
(02:35) - Sean’s Background and Early Career as a Receptionist at Trammel Crowe
(07:52) - What did you do to position yourself as a person to hire for project manager when it was the right time?
(10:19) - Sean’s Movement During the ’08 Crisis
(17:01) - Sean’s Jump to Starting His Own Organization and Decision to Focus on Class A Urban Infill
(21:53) - How did you find your partner and what role does he play in the company?
(24:03) - Setting the Stage - Are there any other full-time employees in the company or is it just you and Jeff?
(26:58) - How long do these deals take from walking the site for the first time to where it’s stabilized?
(31:12) - What makes a site ‘great’ for you in a project?
(34:33) - Is most of the land you're putting under contract un-entitled for multi-family?
(36:16) - How do you find sites?
(39:07) - What does your preliminary underwriting process look like?
(42:12) - How do you pull rent prices?
(42:48) - The LOI Process & 3rd Party Reports
(47:06) - What terms matter in contracts and what does the site need to be when you’re ready to close a year later?
(50:58) - What stages of the contract do you put up hard money?
(52:13) - What city approvals are you typically getting on deals?
(54:05) - At what point are you hiring the architect and does the GC participate with them? How do you come up with a budget that fits your design and that you’re comfortable the GC can deliver?
(57:03) - Are there any big points in a contract with a GC that matter?
(1:00:47) - Who is accountable for the MEP and structural engineers: the architect, the contractor, or you?
(1:01:17) - Where do you get inspiration for design?
(1:03:35) - Do you spend more on projects because you’re so design-forward?
(1:06:03) - Do you get paid premiums in rent because of your design approach?
(1:07:27) - Property Management Needs on 45-unit Property vs. a 100+ Unit
(1:09:01) - Does your architect mock up your interior as well?
(1:09:41) - Who does your common amenity furniture?
(1:09:57) - How do you process draw requests?
(1:11:04) - How do you finance projects and what happens when you stabilize since you are looking for long-term holds?
(1:15:40) - What’s the most popular unit size right now?
(1:16:59) - What amenities matter right now?
(1:18:59) - Are there any repeat issues you’ve seen from design to breaking ground?
(1:20:46) - What are some of the biggest surprises that you weren’t expecting as you look back?
(1:22:42) - How did the civil unrest in MN last year affect your business?
(1:27:25) - What’s the best book you’ve ever read?
Rich Dad Poor Dad by Robert Kiyosaki
Emotional Intelligence (EQ) - Daniel Goldman
(1:29:33) - How can people find you?
Twitter - www.Twitter.com/SeanDSweeney
The FORT with Chris Powers is produced by Straight Up Podcasts