Michael Powers, vice president of industrial investment at Molto Properties, recently shard with Chicago Industrial Properties why his side of the real estate business is full of great people, and what sets Molto Properties apart from the rest. Here’s what he had to say.
Michael Powers has worked in industrial real estate for 17 years. His first job out of college was in the research department of Grubb & Ellis, covering the industrial market.
“As soon as I saw my first truck court, I knew I found my calling,” Powers said. “I went on to work at a public REIT for 10 years and have worked for two private companies, including Molto Properties whom I joined in January.”
After a 17 year career- with plenty of gas left in his tank to expand that number- Powers said, he is always learning something new or different.
“It’s very difficult to get bored in this business, frustrated, yes, but not bored,” he said. “When I made the shift from a public REIT to a private company, it was almost like starting over in this business. Also, I have been lucky to work with really great people, whose enthusiasm is contagious and who like to have fun. I look forward to working with them as we continue to grow Molto Properties.”
Some people might not consider industrial buildings as exciting on the outside as office or retail, but to Powers, what happens inside is much more interesting.
“It’s truly amazing to see all the things that are made or stored in industrial buildings,” he said. “In addition, learning what happens inside a building is incredibly valuable as we make investment decisions on acquiring and developing buildings.”
“We strive to predict our tenant decisions; their location preference, desired layout, renewal probabilities and rent threshold. These predictions are based on what we see each time we go through a building. When our predictions are correct and we pick the right location to develop a building or make a good acquisition, it’s very rewarding.”
Molto Properties can make decisions very quickly, and they have the capital to stand behind their commitments which, according to Powers, sets them apart from other companies.
“In addition our Principals have experience running a successful company, with a large warehouse and distribution footprint. They provide a unique perspective of being a user/occupant that helps us as we make our leasing and investment decisions.”
Success has been nothing but the name of the game for Molto Properties, as they started the year by creating a +/- $250M fund to acquire and develop industrial buildings throughout the central part of the United States.
“We’ve closed on 10 acres in Romeoville, IL and are under construction on a 190,000 square feet spec building,” he said. “We purchased 20 acres in Houston, and are under construction on a 166,000 square feet spec building there as well. We are under contract on three other land sites in Chicago and Louisville, KY, and are pursuing a couple other acquisitions. In addition we leased 209,000 square feet in our Joliet building to a fortune 500 company.”
When Powers isn’t working, he enjoys spending time with the three most important people to him, his wife Carrie, son Conor, and daughter Madalyn. He also relaxes by partaking in Calligraphy. He once also took a trapeze class.
“I am not very flexible, and not incredibly fond of hanging upside down at great heights,” he said. “So as you can imagine, I wasn’t a very good student. I think my wife put it on You Tube, if anyone wants a good laugh.”