Rooster Live Session · Webinar Replay
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The Gap in Net Lease: deals too small for institutions, too complex for most investors.
Ben Kogut talks through where Rooster's best deals actually come from, what credit arbitrage looks like in net lease, and why Rooster is launching a fund. Real Q&A at the end.
20+ Yrs
In Commercial Real Estate
$80M+
Deals Missed Last Year Raising Deal by Deal
9 Cap
San Antonio Buy in a Sub-7 Market
15 Yrs
New Lease Negotiated on That Deal
Why Investors Trust Rooster
“
We're not in the business of just doing deals to do deals.
Ben Kogut, from the conversation
Quick Recap
Key Takeaways From This Conversation
01
Play the Gap
Deals too small for institutions and too complex for most individual investors. Fewer buyers can compete, and that's where the pricing gets good.
02
Relationships, Not Listings
Collision repair buildings in San Antonio, shopping centers around Texas, childcare schools. Every one came from an operating partner, not a broker's inbox.
03
Ask Why the Spread Exists
That's the first question in credit arbitrage. If a spread is too big or too obvious, there's usually a reason. A new lease won't save a dying movie theater.
04
Unit Economics Come First
How many widgets, or enrolled kids, does the tenant need to cover the rent? The financial engineering always comes second to the fundamentals.
05
Discipline Means Walking Away
The money was already raised for a childcare deal. Enrollment slid before closing, so Rooster passed anyway.
06
Patient Capital Wins
Raising deal by deal, Rooster missed more than $80M of deals last year. Capital that's ready to close fast and willing to hold long gets better terms.
How We Invest
Discipline Over Volume
Philosophy
Avoid losing money first. We underwrite the tenant's business, not just the name on the sign, assume costs will run over, and pass on any debt that only works if conditions improve. If a deal needs everything to go right, it's not our deal.
Proof Point
San Antonio industrial. The tenant had six months left and wanted $150K for repairs the seller couldn't fund. We put it under contract around $3M, gave the tenant the $150K for a new 15-year triple net lease, and bought close to a 9 cap in a sub-7 market. Sold after about a year and a half.
This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer will only be made through a confidential private placement memorandum to qualified investors. Past results do not guarantee future outcomes.