Brad Olsen- “Ripples and Bridges” (Part 2) (#114)

Icons of DC Area Real Estate

Brad Olsen- "Ripples and Bridges" (Part 2) (#114)

Play Episode Pause Episode

Mute/Unmute Episode Rewind 10 Seconds 1x Fast Forward 30 seconds

00:00 / 02:21:22

Apple Podcasts Spotify Stitcher iTunes

RSS Feed

Share

Link

Embed

Bio

Prior to his retirement at the end of 2021, Brad Olsen had been active in the area of international real estate investment for more than 40 years. During that time, he has represented investors, investment managers and developers from the U.S., Germany, The Netherlands, the U.K., Canada and Japan on transactions valued in excess of $10 billion.

In 1995, he established Atlantic Partners, Ltd., an independent advisory firm, and he served as President of the company until his retirement.

Before forming Atlantic Partners, Mr. Olsen was a principal of Richard Ellis, Inc., the US affiliate of a major international real estate advisory firm, and a shareholder of the international holding company. At Richard Ellis, he served as the director of the firm’s investment advisory group which advised domestic and international investors.

Mr. Olsen was a founder and principal of The Lexington Company, a Chicago‐based independent real estate investment advisory and consulting firm. His responsibilities included acquisitions and dispositions, asset management and property finance. Richard Ellis acquired the company in 1989.

From 1980 through 1983, Mr. Olsen served as senior vice president and regional manager of the Chicago office of Richard Ellis, Inc. He supervised real estate acquisitions, dispositions and management in the Midwest and was responsible for the firm’s business development efforts nationwide.

Before joining Richard Ellis, Mr. Olsen was a practicing real estate lawyer. He served as general counsel of a real estate development and construction company and was in private practice. His assignments involved various aspects of real estate development, financing and property management.

Mr. Olsen is a graduate of Princeton University and Harvard Law School. He was the author of numerous articles on international real estate investment and a frequent lecturer at leading universities and professional conferences, including Expo Real, the USA Conference in Frankfurt and the Global Property Market conference in Toronto. Mr. Olsen was a longtime member of the Association of Foreign Investors in Real Estate (“AFIRE”) and a member of the European Association for Investors in Non-Listed Real Estate Vehicles (“INREV”).

Show Notes

• Growth of Atlantic Partners (00:01:35)
  • Brad Olson discusses the growth of his business, Atlantic Partners, and the types of clients he worked with. He elaborates on the initial challenges and milestones, including key partnerships and the expansion of services offered by Atlantic Partners.
• Establishing Atlantic Partners (00:03:07)
  • Brad Olson shares the process of establishing Atlantic Partners, including the initial clients and business plan. He recounts the early days, the strategic decisions that shaped the company’s direction, and the importance of a solid business plan in attracting initial clients.
• Building an International Business (00:05:28)
  • Brad Olson discusses his unconventional approach to building an international business and achieving work-life balance. He emphasizes the importance of cultural understanding and flexibility in managing a global client base while maintaining personal well-being.
• Attracting International Clients (00:08:01)
  • Brad Olson talks about attracting international clients, specifically focusing on his interactions with Dutch and other foreign investors. He shares anecdotes about his first meetings with international clients and the strategies he used to build trust and rapport.
• Global Real Estate Investment (00:10:28)
  • Brad Olson explains the dynamics of global real estate investment and the role of different countries in the market. He provides insights into the economic factors driving real estate investments and the comparative advantages of various international markets.
• Norwegian Real Estate Investment (00:13:17)
  • Brad Olson discusses the limitations and dynamics of Norwegian real estate investment, particularly related to their oil wealth. He explores how Norway’s economic policies and oil revenues impact real estate investment opportunities and challenges.
• Client Relationships and Business Growth (00:14:58)
  • Brad Olson reflects on the relationships with his clients and the unexpected growth of his business. He highlights the importance of building strong, long-term relationships and how they have contributed to the company’s success.
• Working with Dutch Clients (00:15:37)
  • Brad Olson shares the story of his first Dutch client and the ripple effect of relationships in the industry. He describes how this initial connection led to a network of Dutch investors and the growth of his business in the Netherlands.
• International Real Estate Investments (00:19:20)
  • Brad Olson details his involvement in international real estate investments, including the structure of transactions with foreign investors. He explains the complexities of cross-border deals and the strategies used to navigate different regulatory environments.
• Consulting for Blue Sky Group (00:22:48)
  • Brad Olson explains his role as a consultant for the Blue Sky Group, including the process of hiring a pension fund consultant. He discusses the challenges and successes of working with Blue Sky Group and the impact of his consulting work on their investment strategy.
• The strategy for Townsend (00:23:13)
  • A 50/50 weighting of public and private real estate, using domestically controlled restructure, and tax provisions awareness. Brad Olson elaborates on the strategic considerations and the importance of balancing public and private investments.
• The Dutch construction pension fund (00:24:09)
  • Discussion about the real estate arm of the Dutch construction pension fund industry and its significance. Brad Olson provides insights into the fund’s investment strategies and the role of real estate in their portfolio.
• Developing a strategy to attract Canadian pension plans (00:26:04)
  • Assisting Blue Sky Group in developing a strategy to attract Canadian pension plans to invest in the Netherlands. Brad Olson outlines the steps taken to appeal to Canadian investors and the benefits of cross-border investment collaborations.
• Creating a commingled fund using domestic control REITs (00:27:04)
  • The idea of creating a commingled fund using a series of domestic control REITs to attract Dutch capital. Brad Olson discusses the innovative approach and the potential advantages for investors.
• Collaboration with Prudential, Principal, and AEW (00:28:10)
  • The process of approaching and collaborating with Prudential, Principal, and AEW for the commingled fund idea. Brad Olson shares the challenges and successes of these collaborations and the impact on the fund’s performance.
• The innovative transaction of commingled capital (00:30:23)
  • The discussion of the most innovative transaction of Brad’s career, involving commingled capital using the domestic control REIT structure. He explains the complexities and the creative solutions that made the transaction successful.
• Creating a structure to attract capital from German banks (00:31:22)
  • The idea of creating a structure, not using domestic control REIT, to attract capital from German banks for investment in the US. Brad Olson discusses the strategic considerations and the potential benefits for both parties.
• Fee structure and payment model (00:32:25)
  • Brad’s preference for a retainer plus a bonus payment model and its evolution over time. He explains how this model aligns incentives and ensures long-term commitment from clients.
• Relationship with Gordon Grubb and Grubb Ventures (00:40:59)
  • Brad’s relationship with Gordon Grubb and the work with Grubb Ventures, including a joint venture with Walton Street and a project with Jamestown. He shares the story of their collaboration and the impact on both companies.
• Transition from family capital to institutional side (00:44:29)
  • Assisting Gordon Grubb in transitioning from typical friends and family capital to the institutional side for real estate projects. Brad Olson discusses the challenges and strategies involved in this transition.
• The Dutch Deal and Walton Street (00:45:16)
  • Discussion of the Dutch client’s deal and the connection with Walton Street and Grubb Ventures. Brad Olson provides insights into the complexities and the strategic importance of this deal.
• Venture with Jamestown and Grubb Ventures (00:45:53)
  • Formation of a venture with Jamestown and Grubb for a mixed-use project in Raleigh, including negotiation details. Brad Olson shares the story of the project’s development and the unique features that made it successful.
• Raleigh Ironworks Project (00:46:50)
  • Description and unique features of the Raleigh Ironworks project, including the history of the building and its adaptation. Brad Olson discusses the challenges and successes of this redevelopment project.
• Relationship with Behringer Harvard (00:48:31)
  • The development of a relationship with Behringer Harvard and the successful creation of a venture with institutional capital. Brad Olson shares the story of their collaboration and the impact on both companies.
• Entry into European Real Estate Market (00:52:42)
  • Discussion of the conditions and challenges of helping Behringer Harvard enter the European real estate market. Brad Olson provides insights into the strategic considerations and the potential benefits of this expansion.
• Multifamily Market in Germany (00:56:05)
  • Insights into the multifamily market in Germany, including rent control laws and tenant lease duration. Brad Olson discusses the unique aspects of the German market and the opportunities for investors.
• Investment Strategy in Germany (00:59:45)
  • Explanation of the investment strategy in Germany, including underwriting and expected returns. Brad Olson provides a detailed overview of the strategic considerations and the potential risks and rewards.
• Comparison of Investment Strategies (01:03:03)
  • Comparison of investment strategies in Germany and the United States, considering market variations and growth prospects. Brad Olson discusses the differences and similarities between the two markets and the implications for investors.
• Challenges in German Retail Property (01:07:01)
  • Discussion of challenges in rezoning retail property in Germany, including the impact of local zoning and planning regulations. Brad Olson provides insights into the complexities and the potential solutions for investors.
• Zoning restrictions and historic buildings (01:07:47)
  • Comparison of zoning restrictions and historic buildings between the US and Europe, impact on real estate development. Brad Olson discusses the challenges and opportunities of working with historic properties and the regulatory environment.
• Introduction to USAA relationship (01:08:43)
  • Brad Olson’s introduction to USAA and his initial interaction with the company through a pitch in 1999 or 2000. He shares the story of their first meeting and the development of their relationship over time.
• USAA’s access to capital in Europe (01:09:46)
  • Brad Olson’s initial refusal to help USAA access capital in Europe and later agreement to work with them until 2017. He discusses the strategic considerations and the impact of their collaboration.
• Multinational deal with a French institution (01:12:04)
  • Details of a multinational deal involving a French insurance company, highlighting the international nature of the transaction. Brad Olson provides insights into the complexities and the strategic importance of this deal.
• Building bridges and long-term relationships (01:13:03)
  • Brad Olson’s approach to building long-term relationships and the significance of maintaining connections over time. He shares the story of his relationship-building efforts and the impact on his business.
• Relationship with Lili Dunn and Bell Partners (01:17:21)
  • Brad Olson’s relationship with Lili Dunn, from their initial meeting in 1989 to collaborating on raising capital for Bell Partners. He discusses the importance of trust and collaboration in their successful partnership.
• Comparison of real estate markets in the Netherlands and Germany (01:25:01)
  • Brad Olson’s observations on the differences between the real estate markets in the Netherlands and Germany, including language barriers and formality in relationships. He provides insights into the unique aspects of each market and the implications for investors.
• German Cultural Sensitivity (01:30:53)
  • Brad discusses the importance of cultural sensitivity when dealing with German contacts, particularly regarding the use of first names. He shares anecdotes and tips for navigating cultural differences in business relationships.
• Misconceptions About German Culture (01:32:15)
  • Brad dispels misconceptions about German culture, including the perception of rigidity and punctuality. He provides a more nuanced view of German business practices and cultural norms.
• Accidental Opportunity with German Newspaper (01:36:29)
  • Brad recounts how a chance meeting with a German newspaper editor led to the serialization of his treatise on the US real estate market in a major German newspaper. He discusses the impact of this unexpected opportunity on his career.
• Consulting Assignment Turned Retainer (01:40:56)
  • Brad describes how a minor consulting assignment for a German syndicator led to a long-term retainer due to his expertise in US real estate deals. He shares the story of this successful transition and the benefits for both parties.
• Relationship Building with German Clients (01:44:27)
  • Brad reflects on the value of relationships and networking in establishing long-term connections with German clients. He discusses the importance of trust and personal connections in building successful business relationships.
• Conservative German Investors (01:49:08)
  • Brad discusses his experience working with a conservative German family investing in ground lease positions in the US, emphasizing long-term security for future generations. He provides insights into their investment strategy and the importance of stability.
• The difference in motivation (01:53:32)
  • Comparison of motivations between old and new generation ground lessors, financing structures, and future generations. Brad Olson discusses the evolving motivations and strategies of different generations of investors.
• The Manhattan transaction (01:54:10)
  • Closing a transaction in Manhattan, working with Steve Collins, and identifying opportunities. Brad Olson shares the story of this significant deal and the strategic considerations involved.
• Evaluating potential deals (01:54:48)
  • Assessing 2-3 potential deals in Washington, D.C., and a deal in downtown Chicago, focusing on operational risks and credit of retail tenants. Brad Olson discusses the criteria and process for evaluating potential investments.
• Introduction to Cubilis (01:56:42)
  • Brad Olson introduces Cubilis, a specialist real estate investment management company with a focus on logistics. He elaborates on the relationship with Klaas Ockens, the founder of Cubilis, and their shared vision for the logistics sector. Brad discusses the strategic importance of logistics investments in the context of global supply chain dynamics and e-commerce growth. He highlights key projects and partnerships that have defined their collaboration, emphasizing the innovative approaches taken to optimize logistics real estate assets.
• Strategic Logistics Investments (01:58:15)
  • Brad Olson delves deeper into the strategic logistics investments made by Cubilis, detailing specific case studies and the outcomes of these investments. He explains the criteria used to select logistics properties, including location, infrastructure, and tenant quality. Brad also discusses the impact of technological advancements on logistics real estate, such as automation and smart warehousing, and how Cubilis has adapted to these changes to stay ahead in the market.
• Partnership with Klaas Ockens (02:00:32)
  • Brad Olson shares the story of his partnership with Klaas Ockens, highlighting the complementary skills and expertise they bring to the table. He recounts their first meeting and the mutual respect and trust that have developed over the years. Brad discusses how their collaboration has led to innovative investment strategies and successful projects, and he reflects on the lessons learned from their partnership.
• Expansion into European Logistics Market (02:02:47)
  • Brad Olson discusses the expansion of Cubilis into the European logistics market, detailing the challenges and opportunities encountered. He provides insights into the differences between the US and European logistics markets, including regulatory environments, market demand, and investment returns. Brad shares success stories of key investments in Europe and the strategic decisions that have driven growth in this region.
• Capital Partnership (02:04:00)
  • Brad discusses the role of his contacts in New York and London in securing capital for a real estate deal in Germany. Brad talks about leveraging his network in New York and London to secure capital for a German real estate deal. He emphasizes the importance of international connections in facilitating cross-border investments.
• BNP Paribas Assignment (2:06:00)
  • Brad is hired to help a large French bank to invest in a European investment fund. A Dutch insurance company, ASR, was represented by Rodney Zimmerman who agreed to do business with BNP Paribas. His friend Barbara in Frankfort led the BNP Paribas Real Estate Fund and then left and there was some challenges. Four years after it began, the fund closed with a 100 Million Euro deal.
• Gideon Testimonial (02:20:00)
  • Rodney Zimmerman’s mentee, Gideon, is quoted about Brad Olsen and his impact. (See below)

Testimonials about Brad

• Gordon Grubb, Grubb Ventures
  • I met Brad around 1995 shortly after he moved to Cary.   He was an advisor when I was running our family company, Grubb Ventures, and he helped close our first institutional partnership.   Then he advised me shortly after 9/11 to start my own company and leave the family firm.   As my wife says, that was the “second best decision I ever made.”  I don’t think I would have had the guts to leave and start over were it not for Brad and another colleague, Gary Joyner, who has unfortunately passed away.  Since that time,  Brad has been the primary advisor for our new company, Grubb Ventures, and even been an investor.  He has helped me in so many ways that I don’t know where to start.  He is one of the smartest people I know and one of the best connected.  Ironically, he is connected all over the world but not so much in the Triangle.  We are working on that now that is supposedly “retired.”  I am incredibly fortunate that Louise allowed him to continue to work with me after retirement (perhaps we should not put that on your podcast as others will be jealous and I don’t want to get Louise in trouble).  I can’t say enough about Brad’s mentorship and friendship over the years.  I will be forever grateful for all that he has done for me.
• Todd Everett, Principal Global Investors
  • Brad’s ability to “connect” people of different backgrounds and experiences is legendary, allowing us to not only find common ground in business initiatives but creating forums of interaction to foster the development of personal relationships in creative, unique, and durable ways.  His Expo Real dinner was a “must have” invitation, filled with games and personal sharing opportunities.  Investment management negotiations might occur on a sailing boat during a regatta event as often as in a board room.  It was rarely the usual when Brad approached or organized something, more often the exceptional.
• Gideon Agymang, ASR Real Asset Investment Partners
  • If I were to describe Brad in one sentence, my description would be: “If relationship management was a person it would be Bradley Olsen.” I think the biggest lesson I learned from Brad would be summarized as followed:
    • ‘Business is business. But you should never forget that business is conducted with people. If you genuinely invest in people, business will always be conducted in a good manner. When business is conducted in a good manner, you can maybe even gain a genuine friendship in a somewhat cold industry. A genuine friendship can open the door to many more opportunities in life and not just business per se.’