Chris Lento’s Journey into Real Estate Development
In this edition of the Real Estate Espresso Podcast, we hear from Chris Lento, a stellar real estate investor from Boston, Massachusetts who has made a name for himself in the multi-family sector across the Southeast. Transitioning from a 17-year stint in the defense industry and building a small multi-family portfolio, Chris transitioned to a full-time real estate investing career seven years ago, demonstrating that it’s never too late to follow your passion.
Moving Towards the Southeast
After realizing the potential benefits of the population boom in the Southeast, Chris strategically shifted his real estate assets from Boston to areas ranging from North Carolina to Northern Florida. As an insightful real estate pro, he found value in the regional job growth and potential for development.
The Atlanta Market
One of the prime cities Chris has his eyes on is Atlanta, Georgia. With a diverse economy that has been recently bolstered by a growing film industry and an influx of manufacturing jobs from the electric vehicle sector, Atlanta presents a favorable market for real estate investments. Despite concerns of oversupply, they quickly found that the new class A properties were being absorbed quickly, and the interest rate environment has stifled many new starts, suggesting a potential for a future supply-demand imbalance.
Value-Add Strategies
Chris details their focus on existing assets and their value-add strategies, which entail management enhancement and property renovation. These approaches are aimed at increasing occupancy rates and improving rental premiums in the medium term. While the current market landscape evolves, deals with assumable debt and relatively low leverage present a significant advantage, particularly given the drying up of capital for equity positions.
Market Flow
While many property owners withhold their properties from selling due to the current market uncertainty, Chris explains that those who must sell are not trading at a steep discount. The presence of capital on the sidelines leveling off bidding wars and the entrance of institutional players could trigger higher demand and competition in the future.
Location Focus
Chris’s company, EM Capital Group, currently focuses on deal flow rather than specific submarkets due to the present limited supply. They also prioritize areas with demonstrated potential like medium to high income areas and locations demonstrating positive transformation trends. The post COVID eviction rate improvement in Georgia is one such important factor indicating improved P&L statements.
Conclusion
Amid challenges and uncertainties in the marketplace, Chris conveys a determined and strategic approach to capitalize on present opportunities. To learn more about Chris Lento and EM Capital Group’s work and insights in real estate, you can connect with him via LinkedIn or visit his company’s website at emcapitalgroup.com.
