Have been spending a lot of time over the past few weeks speaking with capital partners, both existing and prospective.
Yesterday, a guy who has backed us for a lot of years said something that really stuck with me.
He said something like: “The way you describe your business has really changed over the past few years.”
And it’s not just words – our business has changed in some important ways.
But, critically, those changes weren’t random.
Our north star on every deal is trying to maximize unlevered yield while minimizing all-in price per square foot.
As the environment in which we operate (asset pricing, construction pricing, zoning, rents, etc.) has changed, we have made changes to our business model in order to continue to head in the direction of our north star.
When an organism undergoes changes in order to thrive in a changed environment, we describe those changes as “adaptive”.