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Bio
Daniel Klein serves as President of Klein Enterprises, a 4th generation developer, owner, and operator of commercial real estate throughout the Eastern region of the United States.
Daniel runs the Company with a focus on optimizing the performance of the existing portfolio while implementing a strategy for longer term growth. During his tenure as President, he has overseen the growth of the Klein Enterprises portfolio to almost 60 assets totaling over $1.25BN in gross asset value. In 2021, Daniel established Sundeck Capital to manage and grow the Klein family office.
Daniel graduated from Boston University with a BS in Communication and a concentration in Economics. Daniel serves as a member of YPO (Young President’s Organization), ICSC (Innovating Commerce, Serving Communities) and the Urban Land Institute (ULI).
Additionally, Daniel serves as the President of the Philip and Harriet Klein Foundation and has served on numerous philanthropic boards.
Show Notes
- Daniel Klein’s Role at Klein Enterprises (00:06:00)
- Daniel discusses his role as the president of Klein Enterprises and his day-to-day activities.
- Youth and Family Influences (00:07:00)
- Daniel shares his nontraditional childhood, including family trauma and the impact of his family on his life.
- Michael Klein and Transfer of Power (00:10:00)
- Daniel talks about his uncle Michael’s role in the family business and the transfer of power within the company.
- High School Experience at Park School (00:13:30)
- Daniel discusses his experience at Park School, including the influence of stable families and sports as an outlet.
- Post-Graduate Year at Mercersburg Academy (00:16:30)
- Daniel explains his decision to do a post-graduate year at Mercersburg Academy and the valuable experiences he gained there.
- Choosing Boston University (00:17:29)
- Daniel discusses why he chose Boston University for his college education and his expectations for the urban experience.
- College Experience at Boston University (00:21:00)
- Daniel reflects on his college experience, including socializing, joining a fraternity, and his role as fraternity president.
- Leadership roles in high school (00:23:50)
- Daniel discusses being surprised by being voted captain of basketball and lacrosse teams and the challenges of leadership.
- Discovering real estate (00:24:20)
- Daniel’s experience as a college student looking for an apartment led him to consider a career in real estate.
- Getting into real estate (00:25:30)
- Daniel’s decision to obtain a real estate license through a weekend class and his initial intent to attend law school.
- Unexpected career advice (00:26:40)
- Daniel’s encounter with a law firm managing partner who redirected his career path to real estate.
- Gaining confidence as a broker (00:28:00)
- Daniel’s experience as a residential broker during college and buying his first investment property.
- Influential advice from an attorney (00:29:30)
- The impact of an attorney’s advice on Daniel’s career and the value of his time and guidance.
- Transitioning back to Baltimore (00:30:50)
- Daniel’s decision to return to Baltimore and work with his family’s real estate business.
- Family business dynamics (00:35:30)
- Comparing the dynamics of joining the family business in different contexts and company scales.
- Initial challenges and patience (00:39:20)
- Daniel’s initial challenges and patience in acclimating to the family business before pushing for changes.
- Energizing the family business (00:41:00)
- Daniel’s impact on energizing his family members and his early experiences in the real estate business.
- Learning from Early Failures (00:42:00)
- Understanding the mistakes in bidding, inflated assumptions, and learning from others’ failures in real estate deals.
- Discipline and Long-Term Perspective (00:44:00)
- The importance of discipline in not overpaying for assets and recognizing the long-term potential of real estate investments.
- Challenges in Large Projects (00:46:10)
- The difficulties and lessons learned from being constrained by capital and the outcomes of two major development projects.
- Transforming the Business Model (00:50:15)
- The need to change the company’s model, adapt to market conditions, and think bigger during the downturn.
- Leveraging External Capital (00:54:15)
- The decision to bring in external capital, self-preservation, and the shift towards syndication deals for growth.
- Diversification and Partnership (00:57:30)
- Expansion into different property types, grocery-anchored centers, and the importance of partnering with like-minded individuals.
- Bold Moves and Geographical Expansion (00:58:15)
- The bold decision to pursue opportunities outside the region, including joint ventures and diversification into different property types.
- The SSA deal (00:59:10)
- Daniel Klein talks about how his company pursued and won a 500,000 square foot build-to-suit project for the SSA, highlighting the process and the partnerships involved.
- Lessons in Real Estate Evolution (01:03:20)
- Klein reflects on the lessons learned from pursuing the SSA deal, emphasizing the need to reach beyond perceived limitations and the evolution of the firm.
- Recognizing Investment in People (01:05:00)
- Klein discusses the importance of investing in people with financial analytical capabilities and the need for infrastructure ahead of growth.
- Diversification into Multifamily (01:07:30)
- Klein explains the firm’s pivot into multifamily real estate in 2012 and the strategic decisions made to diversify the portfolio.
- Strategic Growth and Geographic Expansion (01:13:30)
- Klein discusses the company’s shift in strategy, focusing on value-add and opportunistic deals, and the geographical expansion along the east coast.
- Portfolio Composition and Management (01:15:00)
- Klein provides an overview of the company’s portfolio composition, including class A multifamily and grocery-anchored retail, and discusses the asset management approach.
- Portfolio Growth and Asset Disposition (01:18:45)
- Klein explains the company’s approach to portfolio growth and asset disposition, highlighting the annual selling percentage and the overall net growth strategy.
- Marketplace at Fells Point (01:20:30)
- Klein describes the Marketplace at Fells Point project, emphasizing its location, completion, and the distressed deal nature it involved.
- Aura Apartments in Largo, Maryland (01:23:00)
- Acquisition from Peter Schwartz, project details, financing with Prince George’s County, and market analysis.
- Venturing into Self-Storage (01:25:12)
- Strategic venture with Morningstar, ground-up facilities, joint venture with Greenberg Gibbons, and diversification of portfolio.
- Waldorf Townhouse Deal (01:27:00)
- Build-to-rent community, market challenges, potential conversion, and institutional buyer interest.
- Acquisition Strategy and Cedar Realty Deal (01:29:15)
- Challenges of acquiring portfolios, relationship-based deal, and details of the Cedar Realty acquisition.
- Multifamily Project in New Jersey (01:35:50)
- Groundbreaking of a $100 million+ project, financing with Northwestern Mutual, and the Kempson project as an example of collaboration and challenges.
- Almanac Realty Investors (01:39:15)
- Experience with Almanac Realty Investors, their impact on growth, and past experience with Rothschild Real Estate.
- The transformation of the company (01:40:30)
- Details the pivotal event in the company’s transformation and the roll-up of single-purpose entities.
- Formation of the holding company (01:42:00)
- Explains the reasons behind the formation of the holding company and the challenges faced prior to its establishment.
- Building an institutional quality management team (01:42:50)
- Describes the process of building a high-quality management team and the key individuals brought in to elevate the company.
- Impact of COVID-19 on capital raising (01:45:20)
- Discusses the challenges faced during the capital raising process due to the onset of the COVID-19 pandemic.
- Partnership with Almanac (01:47:00)
- Details the decision to partner with Almanac, the due diligence process, and the commitment made to the company.
- Deal structure and corporate changes (01:48:45)
- Explains the deal structure, including preferred equity and debt components, and the corporate changes made post-partnership.
- Almanac’s impact on business growth (01:54:45)
- Illustrates the impact of Almanac’s commitment on the company’s ability to pursue larger deals and enhance credibility in the real estate market.
- Governance and board structure (01:58:15)
- Outlines the board structure, governance practices, and the involvement of Almanac in the company’s decision-making processes.
- The importance of board members (02:00:00)
- Discussion about the valuable contributions of board members, particularly the wisdom and experience they bring to the table.
- Commitment to sustainability (02:01:15)
- The focus on sustainability, including brownfields remediation, alternative energy, and the importance of sustainable development in today’s world.
- Social responsibility in a small company (02:03:30)
- Challenges and strategies related to social responsibility in a smaller company, including diversity in hiring and fostering a positive company culture.
- Adapting to AI and career advice (02:05:00)
- The importance of adapting to AI in the real estate business and career advice for younger professionals, including the need for continuous learning and adaptability.
- Reflecting on career wins, losses, and surprises (02:07:20)
- Discussion of career highlights, setbacks, and unexpected turns, including lessons learned from both successes and challenges.
- The value of industry affiliations (02:10:00)
- Insights gained from affiliations with industry organizations, such as YPO, ICSC, and ULI, and the transformative impact of these connections on professional and personal growth.
- Advice for a younger self and a billboard statement (02:12:00)
- Reflecting on the passage of time and offering advice to a younger self, as well as sharing a powerful statement for a billboard about the importance of doing good and being kind.
