00:00You've already got a lot of money already put to work in this, a couple hundred million dollars.
00:03You're seeking, what, up to about $500 million out of the gate in terms of investments?
00:07Yeah, that's correct.
00:08Yeah, so actively we've got about $200 in an active pipeline.
00:12I would say our strongest markets are in New Jersey, Newark and East Orange, where we have active developments.
00:17I would say our project in East Orange, we're scaling that up to about 150 units.
00:20And we have a couple infill projects in Newark where it's about 50 to 75 units,
00:25where it's very important to kind of touch those parts in the real estate sector to kind of really provide
00:31density and demand.
00:32We're talking about residential.
00:33Residential.
00:34Multifamily, mixed-use, primarily workforce.
00:37We try to target AMIs, area median income, between 60 to 110 percent.
00:42And this isn't, I mean, obviously this is an investment for you,
00:45but there's also a personal connection with regards, particularly Malcolm,
00:48with regards to your ties to some of the communities you just talked about.
00:51Yeah, everything that we do, we try to have community impact.
00:53And even Pleasant Rock to the name is based off the streets that we grew up in, the neighborhood we
00:58grew up in, in Jersey.
00:59And so we target those areas that we have longstanding relationships with in the city that we've done work with,
01:06whether it be business, charitable work, and then we open that up to invest in real estate
01:11and invite others to participate in kind of what we built.
01:15Well, when it comes to investors, Brian, that's what I'm particularly interested in.
01:19You know, what form of investor you see as the target audience here, you know,
01:24whether that includes private equity, institutional, what are you sort of looking at here?
01:28Yeah, I think the ideal investor mix would be family offices, athletes, and, you know, friends and family.
01:35I think institutions play a role in that factor, but I think for us, we like to lean into our
01:41strengths.
01:41I think for us, when we have, look at our strategy, the public-private partnership, it's a new modern mix
01:46to it.
01:47And we want to bring the athletes to the center of focuses.
01:49So we want to make sure the athlete is empowered and being at the forefront of it.
01:53So we want to kind of bring that together, allow them to be the core focus of how we're looking
01:57at capital raising
01:58and leveraging that aspect to it.
02:00But we do believe as we scale and we get over that $500 million mark,
02:04we will have to, you know, leverage institutions more at a higher level.
02:06But I think in the box that we're playing in now, probably more or less family offices and friends and
02:11family.
02:11And we've talked a little bit about geography already when it comes to, you know, where you're investing,
02:16where you're seeing the strength.
02:17I'm curious about the sports side of things, Malcolm, here.
02:21So talk to us a little bit about the different types of sports and teams that you're looking at here.
02:26Yeah, I mean, everything we do, we try to keep it around our expertise.
02:30And obviously, being an athlete, sports is something we know very well.
02:33So even if it's adjacent to sports, we've been into franchising, we do foods and things that we know are
02:39going to be a part of the sport experience,
02:41whether it be pizza, wings, things like that.
02:43And so we're looking at, you know, how we want to activate.
02:46It is really all around the game, the athlete, and how we build communities.
02:52As an athlete, we know markets are where we have the most influence, not necessarily around the country, but in
02:57this specific area.
02:59And so that gives us a leg up to be able to convene the people that we need in order
03:04to provide these opportunities.
03:06We're seeing a lot more athletes sort of take this route once their professional careers are over,
03:12with not only just regards to investing overall, but specifically this more targeted investing.
03:16Are you seeing that a lot from some of your peers back when you were in the NFL,
03:19or maybe even some of the younger guys that are still there, and maybe thinking about what their post-career
03:24future is?
03:25Yeah, and I think the fun part about it is we're seeing athletes not wait until they're retiring,
03:29they're doing it while they're active, building teams similar to what I've done myself.
03:32My entire team has built the people I knew, I grew up with, who've been doing great things,
03:36and I'm able to put them in position to build together.
03:40Group economics, collective effort is really our model, and we've done that across different sectors.
03:45This is just another addition to what we've been able to do, Malcolm Mink, my family office, and the partners
03:50we have.
03:51So, Brian, with regards to the strategy, though, with some of these investments,
03:54is the idea that these are going to be sort of long-term income generators,
03:57or are you looking to sort of build things and then sell them at a profit?
04:00I mean, what's your vision?
04:02Yeah, I think that's a great question.
04:04I think from a balanced approach, if we had to liken some football terminology,
04:08we look at more from a check down kind of slants, longer passes, and then some Hail Marys, if you
04:15want to call it.
04:15So in terms ofâ
04:16You're losing, Katie.
04:17Yeah, all of that is over my head, but it sounds really cool.
04:22Sounds good.
04:23Yeah, so keep onâ
04:23That's what I was going for.
04:25No, in terms of, I guess, long-term, I think if you think about a traditional real estate cycle or
04:30hold period, it's about five years.
04:31So some of those infill projects, we try to get in and out within two to three years, get return
04:36of capital back to investors.
04:37And some of the larger projects, you can expect us to hold about five to seven years.
04:40Long-term, we want to selectively hold these assets for a longer period of time.
04:44Not all of them, probably about 25 to 30 percent of it, because we are invested in the community,
04:48and we believe that having that long-term hold helps us stay entrenched in the community,
04:52not just kind of be traditional real estate investors, flip and get out and pass a buck.
04:56We found interesting in different introspective ways to get liquidity to our investors by balancing our approach of smaller deals
05:03and then larger deals to kind of balance that approach.
05:07I'm trying to think of, like, a dressage reference I can get in here, but coming up a little bit
05:11short,
05:12I do want to talk about the interplay between sports and real estate.
05:17And, Brian, how you're potentially thinking about sequencing here.
05:20I mean, is the idea to start in real estate, expand to sports, or, you know, what were the conversations
05:25around that?
05:26Yeah, you know, real estate, we're at the center of real estate in sports, and that's kind of how we
05:31look.
05:31We're at the very center of real estate in sports.
05:32And when you think about sports, you can't talk about sports without real estate.
05:37Everything is housed somewhere.
05:39I really believe that all of us, you know, consume real estate every day of our lives.
05:44So if you think about how you intertwine sports into it, as we're going out and we're seeking these minority
05:50ownerships
05:51in these either leagues or emerging leagues, we're at the table to have these conversations and say,
05:55hey, listen, we're at the grassroots, we see that this league is emerging, we're investing.
06:00Is there a training facility that needs to be built?
06:02Is there housing around here that needs to be built?
06:04And we kind of integrate that into our real estate strategy while we're having both of those conversations.
06:08And because we have the expertise in-house, we are more better suited as investors to kind of help round
06:15out the team,
06:16not round out the investing team that's looking to invest in sports.
06:19He's here to pay to stand half of the people that want to spend the contract PD.
06:19So if we should be doing that, please take our business.
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