Welcome to this month's newsletter! You're probably already noticing that this one appears a little different than all the others, and you'd be correct in your thinking. We've decided to do a little pivoting in our formatting of the newsletter, in order to make it more appealing to the eye while still providing you with all of the value you've been loving so much in these newsletters. Let's begin!
Happenings of Greenlight Capital
- On April 21st, 2020, we launched our very first episode of the Creative Capital Podcast. Since then we have been releasing 1, and now 2, episodes per week to the listeners. We are happy to announce that our podcast has seen tremendous growth over the last year. We started with only 5 downloads and have now surpassed over 45,000 downloads! The picture above is our episode that has received the most downloads, and for good reason. KC teaches us how we can eliminate having to pay capital gains tax AND property taxes on our real estate via a specific type of trust that is simple to set up! To listen to the show click here!
We just closed on our most recent acquisition, a 148 Unit Portfolio in Mobile, AL!
This deal made a lot of firsts for us: 1. First deal over 100 units 2. Largest deal we've ever closed 3. Most capital we've ever raised in one sitting 4. First time partnering outside of Greenlight Capital 5. First time buying a portfolio 6. First time implementing our new favorite business model, The Perpetuity Model If you're interested in learning more about how to join us in our next deal, continue reading, and you might find out there's an opportunity closer than you think...
I had the opportunity to be on over 30 podcasts, including:
1. Real Estate Syndication Show with Whitney Sewell
2. Best Real Estate Investing Advice Ever with Joe Fairless
3. Weiss Advice with Yonah Weiss
4. The Real Estate Rundown with Shannon Robnett
5. Crazy Sh*t in Real Estate with Leigh Brown
6. Everything Home with Michele Swinick
7. Ritter on Real Estate with Kent Ritter
8. The Rent Roll Radio Show with Sterling Chapman
9. The N.O.I. Podcast with Brent Barcus
10. Target Market Insights: Multifamily + Marketing with John Casmon
And so much more! If any of you know anyone with a killer show that needs guests, I'm wide open and looking to join a minimum of another 20 this year!
Our newest adventure, The Creative Capital Challenge, will be launching this August! For all of my active investors out there looking to learn how to up their capital raising game, we will be teaching all of the groundwork necessary in order to be able to raise a minimum of $1,000,000 in 30 days with no limit to what's possible! For more information on this, or to join us in this challenge, click this link!
Investment Opportunity
Chase Park Apartments - 88 Units - Montgomery, AL - B Class Asset with LOTS of Upside
This is one of those true "Value-Add" Deals that you always hear about, but never actually see when sponsors reach out to you. The rents are $200-$300/Month BELOW market! We are going to be holding this asset in perpetuity, so this is more of a generational wealth/lifetime cashflow play. Minimum Investment - $50K Only a few spots left! This one is filling up fast, so if you have any interest, head over to our investor portal and save your spot! Details/Documents/Webinar Recording are all on the portal.
Mobile, AL Market Data
Medical: 1. The Pediatric Emergency Center at USA Health Children’s & Women’s Hospital moved a step closer to its renovation and expansion with a $500,000 appropriation from the state of Alabama as part of the legislative session.
That commitment brings to $1 million the state’s investment in the project, estimated to cost a total of $15 million. Adding the latest allotment, USA Health has raised more than $10 million through donations.
The project will take approximately two years to complete once a Certificate of Need is approved.
The expansion will more than double the emergency department from 9,000 square feet to nearly 19,000 square feet. The expansion takes the hospital from 14 treatment areas to more than 30, including 25 private treatment rooms. And it creates two behavioral health rooms and a sensory room for patients with specialized needs.
The space will provide enough room for parents and caregivers to be with their children, and it will strengthen educational and training opportunities for future health care providers.
USA Health has the only dedicated pediatric care emergency room in the area, which means it has providers specifically trained in this area of medicine.
2. Can artificial intelligence save the lives of stroke patients and cut health care costs? Dr. Amod Amritphale, USA Health’s director of cardiovascular research and an interventional cardiologist, believes it can.
Amritphale used computer algorithms to learn more about patients who suffered strokes, specifically those patients readmitted within 30 days, even after undergoing a carotid artery stenting to open a narrowed carotid artery.
Amritphale used a national database to track and describe rates and causes of unplanned readmission. His findings were published in the April 2021 edition of “Advances in Therapy.”
If 100 patients underwent the procedure and 10 were readmitted within a short period after discharge, he would compare those 10 patients with the remaining 90 people who were not readmitted.
“I would take that data and say, ‘What made these 10 people come back to the hospital?’ So, the next time I see someone like them, I can tell that patient they are at risk for readmission and discuss ways to prevent it,” he said. “If patients know beforehand they are at high risk to come back to the hospital, they will pay closer attention to their bodies, focus more on diet and exercise or, if they are experiencing symptoms, call their doctor or go to the ER sooner.”
Real Estate:
1. The Baldwin County real estate market remains hot, according to the Baldwin Realtors’ latest housing report. Average home sales price in May 2021 was $324,482, up 22.7 percent compared to May 2020. That’s up from $312,603 average sales price in March 2021.
Homes stayed an average of 36 days on the market, down 45.5 percent compared to the same month a year ago. In March of this year, the average number of days on the market was 45.
2. The Gulf Shores City Council gave final approval for a Conditional Use Permit and Site Plan for the development of the Phoenix II Condominium in the 500 block of East Beach Boulevard. The Conditional Use Permit request was for an additional habitable story. Plans include a 24-story structure with 110 units and a five-story parking deck. Amenities include an indoor/outdoor pool, hot tub, fitness room and lazy river.
The proposal includes public amenities as well, such as a dedicated, 24-foot public beach access, boardwalk, dune walkover, sand rinse station and pedestrian and bicycle facilities.
Business:
1. The work just keeps coming in for Austal USA, which was recently awarded two Navy contracts. A $44 million contract for the expeditionary fast transport USNS Apalachicola (T-EPF-13) will establish the ship as an autonomous prototype. This award builds on the company’s previous autonomous work for the U.S. Department of Defense.
Austal USA also got a $3.6 million contract for the functional design of the Navajo-class Towing, Salvage and Rescue Ship (T-ATS). This marks the first new construction steel contract for Austal after breaking ground on a new steel manufacturing line in March. The line will be operational in April 2022.
2. When Aerostar celebrated 10 years of providing aerospace support in Mobile June 19, they rented out Flight Works Alabama for employees and their families.
The local startup was established in 2011 with only two employees. Aerostar grew to over 50 employees pre-pandemic and has increased its physical footprint from 6,000 square feet to 30,000. Aerostar operates in the aerospace “MRO” sector — maintenance, repair and overhaul. In layman’s terms, it’s an auto mechanic shop for airplane components.
Aerostar serves a client base of domestic carriers including FedEx, Delta, Southwest, Jet Blue and a myriad of regional carriers and businesses that serve the commercial airline industry.
Aerostar President Greg Guzman credits the success of the aerospace segment to years of hard work by the city of Mobile and the Chamber of Commerce to implement policies that attracted companies like Airbus and, in doing so, created a supply chain to support it.
3. Things are rolling right along for AutoMOBILE International Terminal (AIT) LLC, which held its grand opening at the Port of Mobile in June.
The facility’s opening took place just 17 months after AIT signed a concession agreement with the Alabama State Port Authority, creating a U.S. gateway for shipping finished automobiles for U.S. and global manufacturing and consumer markets.
With a $60 million public and private investment, AIT repurposed an old, unused and derelict bulk-handling facility. During construction, the terminal base elevation was raised to exceed the 100-year flood level. The new facility provides a vehicle processing center, ro/ro (roll-on, roll-off) terminal and automobile rail ramp.
The facility sits on a 57-acre site, a preferable location serviced by five Class I railroads with easy access to major interstate and highway systems.
Storage capacity exceeds 7,000 vehicles and the facility has an annual throughput capacity of more than 150,000 vehicles. Officials say that makes it ideally positioned to add value to the finished vehicle logistics supply chain in the Southeast and throughout North America.
“When fully operational, the facility is expected to generate over 800 direct, indirect and induced jobs in the area,” Chief Operating Officer Finn O. Roden said.
Now that construction is complete, wheels are in motion for the next phase. AIT is in active discussions with several auto manufacturers and ocean carriers to drive vehicles and ro/ro cargoes through the new facility.
The company’s location at the Port Authority is indicative of Mobile’s position as an international market. AIT is a joint venture between Terminal Zarate, S.A., a Grupo Murchison company, headquartered in Buenos Aires, Argentina, and Neltume Ports, headquartered in Santiago, Chile.
4. Yet another international company, Finland-based Kemira, completed a $70.8 million expansion and installation of new, state-of-the-art production units at its manufacturing site, located off Highway 43 north of Plateau.
Kemira is a leading global polymer producer serving the pulp and paper, oil and gas, and water treatment industries. The company uses chemistry to add quality and strength to paper and food packaging products.
Production has started and the facility is expected to be fully operational this summer. Company officials said the expansion is expected to create 20 full-time positions at the Mobile site, which already employs about 60.
5. It’s an interesting concept: a retail store aimed at wealthier shoppers, but with most items costing $5 or less. And, yet, here we are.
Two Popshelf stores will open this fall in the area, one at 3787 Airport Blvd. in Mobile and the other at 2863 S. McKenzie St. in Foley, the company announced. Popshelf stores are a new brand launched last fall by Dollar General, offering many of the same items found in those stores, such as home decor, beauty and cosmetics, cleaning supplies, electronics and more.
Popshelf’s merchandise will be changed out frequently so shoppers experience something new with each visit.
Items include on-trend seasonal and home décor, health and beauty must-haves, home cleaning supplies, household and specialty items, arts and crafts, party planning and entertaining needs, electronics, toys and more.
“We are thrilled to expand the Popshelf offerings in Alabama and look forward to having customers pop by our new Mobile and Foley stores later this fall,” Matt Frame, Popshelf’s director of store operations, said. “At Popshelf, there’s fun in every find, happiness in the affordability and joy in stress-free shopping experience we offer, and we look forward to welcoming our communities to our new stores soon.”
Each store is expected to create up to 15 new jobs.
As part of the brand’s commitment to serving its communities, it is partnering with The Confetti Foundation to provide 1,500 birthday parties in 2021 to children who spend their birthdays in a hospital or clinic.
6. Imperial Dade, a leading independently owned and operated distributor of foodservice packaging and janitorial supplies, broke ground on its new logistics hub in Loxley.
The $20 million total investment will create 55 new jobs at the 220,000-square-foot building located off Interstate 10 on County Road 49. Imperial Dade will move to the site from its existing Loxley location.
“Loxley is the ideal location for our new logistics hub, which will allow us to expand our operations in this very important region,” Imperial Dade CEO Robert Tillis said.
Gov. Kay Ivey, who attended the June 29 groundbreaking, said because of investments like this, the state will continue to be the leader in the Southeast for first-class job opportunities.
The new logistics hub, developed and owned by I-10 Gulf Coast Logistics Center LLC, will be the first Class-A industrial facility constructed in Baldwin County.
“We are bringing a new quality level to the market as well as the flexibility to accommodate both smaller distribution users and larger users with tall, clear-height requirements,” Stewart Speed of I-10 Gulf Coast Logistics Center said.
7. Austal USA delivered the future USS Savannah, the 14th Independence-variant Littoral Combat Ship, to the U.S. Navy.
Savannah (LCS-28) is the seventh ship Austal has delivered to the Navy in less than two years.
“Delivering two major ship programs on schedule and on budget is something our team is incredibly proud of,” Austal USA Interim President Rusty Murdaugh said. “It has been especially rewarding to hear the positive feedback from the Navy commanders and sailors on how well these ships are performing operationally.”
The company has reduced the overall time of construction from ship to ship, completing the Savannah in just under three years, a 12-month improvement over earlier ships.
Austal’s Mobile shipyard has five LCS and two Expeditionary Fast Transports under construction, and two additional ships under contract. Austal USA was also awarded a design contract for the U.S. Navy’s Light Amphibious Warship, which will be manufactured on the company’s new steel construction serial production line.
The End
That's all we got for this month! Don't forget to join our investor portal, get more information about the Creative Capital Challenge, check out our podcast, Creative Capital, and follow us on social media for continued updates. As always, God Bless!