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For the average Florida real estate investor, Wall Street banking and investing practices may seem worlds away. However, one investor and developer in the state has managed to successfully fuse his expertise in Wall Street investing with the Florida real estate market.
Santosh Govindaraju is a Florida developer with an interesting history. Prior to finding success in Florida real estate markets, Santosh was immersed in the world of high-strategy investment banking on Wall Street. After moving to Florida, Santosh applied his investment banking expertise to Florida real estate with a focus on the Tampa market. Santosh and his firm, Convergent Capital Partners, have been providing equity and debt investment options in a variety of Florida commercial real estate for over 17 years. This episode, he discusses his transition to real estate investing and what’s next for the Tampa market.
- Wall Street Lessons
- “Reversion to the Mean” – markets and prices fluctuate, but they will always indicate a trend, or mean
- Relative-value trading – With two similar asset classes, sell asset class sitting above the mean and buy the asset class sitting below the mean
- Convergent Capital Partners
- Santosh paired his understanding of financial side of investing with partner’s physical knowledge of real estate
- Saw relatively stable markets in FL during late 1990s
- Opportunistic commercial investing: all commercial asset classes except industrial; looking for properties with mixed-use potential
- Private Equity Platform Fund-Operation: base of 10 investors; deal offered first to fund as whole, then to individual memebers
- Tampa Market
- Strong recent investment/development growth
- Institutional capital competing for projects
- New vision for Downtown Tampa
- Harbor Island Project: “The Point” – Convergent Capital developing 115k sqf. property in Tampa harbor