Real Estate Insider: 3 Tips for Buying Commercial Real Estate - Black Enterprise
Black Enterprise Magazine September/October 2018 Issue

Peebles has a new real estate venture in the works

Real Estate mogul R. Donahue Peebles, owner of Miami-based Peebles Corp. spoke with Black Enterprise about his most recent venture, a majority ownership in The Mardis Gras Hotel & Casino, a 320-room hotel and casino located across the street from the  Las Vegas Convention Center. He plans to develop the property, along with 14 acres of land he owns nearby, and unveil it as the Las Palmas Resort and Casino when the market recovers.  The $2 billion development will be a full-scale convention center resort and casino featuring both a three-, four-, and five-star hotel which will be flagged and branded by Best Western.

Currently, commercial real estate in the U.S. is stagnant and treading water, but there are still many opportunities that investors can take advantage of, says Peebles. Here are three things he says  to consider before venturing into commercial real estate:

The geographic market. “Obviously we look at what the national outlook is, but when we make a specific decision on what we are going to invest in, we look at location in a strategic sense,” says Peebles (No. 32 on the BLACK ENTERPRISE Industrial Service List). “We don’t look to buy in the best location. We look strategically at where it is right now and what it can be.” For example, Peebles points to the Paradise Road corridor off of the main strip of hotels in Las Vegas. It only housed the Hard Rock Hotel 10 to 15 years ago, but now it has been and continues to be transformed, says Peebles.

How it fits into your portfolio. “As an investor … we’re looking to get a good return in comparison to what we can earn placing our money in the financial markets or leaving it in the bank, or getting CDs and the like,” says Peebles. Peebles likes to buy properties that have inflation income potential and the potential for that income to grow as the market recovers. Because, ultimately, where you make big dollars is in redevelopment and a long term upside, he says.

Initial return on equity and revenue. “We’re looking for potential revenue to grow in the marketplace as it recovers. For the future upside/future development is why the strategic nature of location is important. “When that market recovers, then you have the opportunity to either develop it like we are,” says Peebles. “or if you’re an investor, sell it to a developer.” Since you are selling as a development parcel it will have greater value.

For more information about R. Donahue Peebles and commercial real estate:

The Master Builder Strikes Again!

Real Estate Mogul Celebrates Book Launch

R. Donahue Peebles: ‘We Will Land Aqueduct Deal’

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Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.