Q&A with Adam Dunn and Tripp Bell, Founders of The Building, Land & Development Group in Raleigh

By Adriana Pop, Associate Editor

Adam Dunn and Tripp Bell recently launched The Building, Land & Development Group (BLDG US) based in Raleigh, NC.

The company identifies, acquires and improves well-located multi-family real estate assets in desirable, secondary submarkets across the United States. Its leadership team has participated in the sales execution and successful closing of nearly 18,000 apartment units exceeding $2.5 billion in total aggregate value and has professionally managed over $250 million worth of institutional quality multi-family assets.

Q: What’s your forecast for the Raleigh market, and what kind of long-term results do you expect?

We relocated to Raleigh to launch BLDG due to the excellent demand drivers and economic fundamentals in the region. Raleigh is one of the fastest growing cities in the United States. The Triangle submarket of Raleigh, Durham and Chapel Hill is experiencing tremendous population growth fueled by millennials seeking diverse job opportunities. Over the next 15 years, we anticipate that the population will double. With the constant influx of jobs creating demand for quality rental housing, we expect the development pipeline will continue to be absorbed at a healthy pace.

Long term, the area will continue to be one of the most desirable places to live in the United States. Some of the top universities in the nation are in our backyard. Unlike most primary markets, the Triangle is comprised of many undeveloped tracts of land that will potentially offer residents a new place to call home as development continues to spread outward.

Q: Is there any particular product you are focused on? What types of demographics do you target?

BLDG primarily focuses on value-add multi-family assets that were constructed between the 1980s and 1990s. We seek properties that require a strategic exterior and interior renovation program to reposition the asset in a given submarket. We feel that our platform is most effective in Class B rental communities comprised of 100-300 units.

We put a lot of emphasis on analyzing economic drivers and demographics of the submarkets in which we invest. The Triangle boasts a highly educated population and an unemployment rate below the national average. Over the next 15 years, we anticipate that the population will double. The excellent connectivity and reasonable cost of living that this area offers has made it very attractive to businesses looking to expand, relocate or startup. The fundamentals make sense to us.

Q: What are your priorities and what challenges do you foresee?

Our number one priority is continuously creating relationships with potential new investment partners. Recently, we have seen significant interest in our platform from high net worth individuals looking to diversify their investment portfolios and several private equity groups, both domestic and foreign. One of the biggest challenges we face is educating accredited investors who have never invested in real estate. However, as the alternative asset investment landscape becomes more mainstream we expect to see further interest in our platform from this growing group of investors.

Q: Are you optimistic about finding lenders to finance multi-family acquisitions in this region?

We are confident and optimistic that we will find lenders to finance multifamily acquisitions in this region. As we identify potential investment opportunities, lenders are currently quoting us favorable agency and CMBS terms. We have spoken to a number of local, regional and national lenders who have shown great interest in the region, particularly in the type of product we are looking to acquire. We believe the submarket’s fundamentals speak for themselves.

Q: Do you have plans to expand to other parts of the country?

As we continue to grow our operations and track record in Raleigh, we anticipate strategically expanding into other secondary submarkets featuring similar economic drivers as the Triangle. When appropriate, we see BLDG venturing into cities such as, Charlotte, Nashville, Atlanta, Denver and Minneapolis. As our platform grows into other markets, we expect to hire local market experts to join BLDG to deliver world-class service to create optimal value for our investment partners.

For more information, visit www.bldg.us.