RE #90: Evan Kasper - Founder of ELK Development - Co-Living Pioneer

Evan Kasper, Founder/CEO of ELK Development, is an established leader in the furnished rental sector. Before starting ELK Development, Evan was the co-founder of the Medici Group, the largest co-living company globally with thousands of units under management. In 2016, he launched Medici Group’s US division and grew it to a $100MM operating business.  On this episode, Chris and Evan dive into the world of co-living real estate. Evan describes the three pillars of co-living: affordability, flexibility, and convenience. Evan also touches on how co-living has been affected by the pandemic, and then Evan breaks down the pros and cons of the three structural practices in this space: master leasing, management partnerships & owner-operators. Enjoy!  Follow Chris on Twitter: www.Twitter.com/FortWorthChris Learn more about Chris Powers and Fort Capital: www.FortCapitalLP.com (01:18) - Evan’s Background (03:47) - Evan’s First Experience in Co-Living Spaces Quarters.com (06:33) - How did you cut a billion dollars of the GSA from the government? Was it easy? (08:19) - How long were you at Medici and when did you leave to start ELK? (09:48) - At Medici, would you master lease a developed building, or would you go into apartments and convert them into co-living spaces? (10:41) - How many buildings were empty and simply ready to be occupied? (12:00) - In general, how do you define co-living? How does that relate to what you’re doing at ELK? (15:04) - Three Pillars of Co-Living: Affordability, Flexibility, Convenience (17:03) - How big is a micro-unit or co-living unit? (18:14) - What are the advantages of owning this kind of real estate as an operator? How would each party make money if they’re separate (owners and operators)? (20:38) - As the operator/owner, are you signing a master lease to yourself to provide this flexibility or is it done lease by lease?  (20:57) - Are you designing these units to be able to furnish them with the demand in each lease? (21:56) - The Difference Between Micro-Units and Co-Living Spaces (22:56) - What's the percentage of people requesting furnished vs not furnished? Has that changed at all through COVID? (24:08) - Are you renting the furniture provided in units or purchasing it? (24:18) - What amenities do you see in co-living that you don’t see in a traditional multifamily community? (27:08) - Is the sharing economy still an amenity in 2020? (29:01) - How are these assets financed? How did the lenders look at it? (32:07) - Why would you be getting less in rent if you’re converting these into bigger units? (54:50) - How do you think about the potential for discrimination lawsuits or fair housing issues as it relates to curating a unit mix? (56:42) - Is there any personality profiling to help see who would be good fits together? (Similar to dorm room housing in college) (57:42) - What are your thoughts on the DC co-living project that doesn’t have locks on bedroom doors to create more trust? (58:37) - What questions should an owner or developer be asking when deciding between a master lease or management agreement? How do you detect their financial strength? (1:00:35) - Are there best practices for converting existing units into co-living? (1:02:15) - Are there any zoning challenges that come up within these conversions? (1:03:32) - Why did you choose the LA market? The Weekly Take Podcast with Spencer levy (1:07:39) - What’s the best advice you’ve ever received? (1:08:24) - Is there a book you would recommend? Principals: Ray Dalio (1:08:54) - If you owned a billboard, what would you put on it? (1:09:56) - How to Contact Evan Evan on LinkedIn Website Email: [email protected] The FORT with Chris Powers is produced by Straight Up Podcasts