Steven Gage

My wife and I have 2 kids.

And if there’s one thing I hope I’ve taught them, it’s this:

Character is everything.

• In business.
• In relationships.
• In how you show up when no one’s watching.

I tell them:

→ Keep your word. Every time.
→ Aim for win-win deals. Always.
→ Choose the work you love. Life’s too short not to.

But no matter what?

Faith and family come first.

That’s the foundation I want them to build on.

What values do you try to pass on to your kids?

I knew a developer who built a $5,000,000 strip mall.

Brand new. & it still flopped.

- Vacant units. 
- Poor traction. 
- Sold at a loss.

Why did it flop?

In my opinion?

The developer didn’t do the proper due diligence.

Development is tricky. It’s nuanced.

You have to “read the room.”

You’ve got to know the site. 
You’ve got to know the city. 
You’ve got to know what each of them need.

As a limited partner, it’s hard to know what the city needs. 
As a limited partner, it’s hard to know what the site needs.

Here’s 3 questions to ask every developer before investing:

1. How’d you conclude this asset-type for this project? 
2. How’d you identify this tract of land for this project? 
3. How’d you pick this level of finish for this project?

You want to see market research. 
You want to see local surveys. 
You want to be overwhelmed.

If you aren’t overwhelmed by the research?

PASS.

P.S. What’s your fear of investing in a development?

We’ve developed $300,000,000 worth of real estate.

Here’s a capital structure we used for several deals:

• Investors receive 100% of invested capital. 
• Then, receive an 8% preferred return on investment. 
• 20% of profits until 14% return on capital. 
• After the 14% return is reached, 
• A 10%/90% split on the remaining profit.

Otherwise known as a waterfall split.

We received some questions about the structure when I last posted about this, & I wanted to speak a bit about it today.

1. “The structure seems to favor the developer.”

- I can understand the perception, but here’s the reasoning: 
- Our investors understand the inherent risk of developing.
- The structure is meant to create downside protection. 
↳ BEFORE the GP participates in any upside returns, 
↳ 100% of invested capital is returned to investors, 
↳ & LP’s receive an 8% preferred return.

This structure prioritizes investor capital and stable returns first. We only participated meaningfully once we’ve delivered both your principal and a strong preferred return.

After that, we earn our upside through performance.

Not fees.

Curious to hear your thoughts on the capital structure.

Comment below with other structures you’ve seen.

$5,000,000,000+.

That’s how much “flex warehouse” inventory is being built right now.

Yet, so many investors haven’t heard of the asset-class.

Here’s what you need to know:

1) The niche is filling a massive need.

- These spaces are small-bay industrial properties. 
- Think warehouse/showroom/office space…
- All in one. 
- With industrial & manufacturing skyrocketing. 
- These “warehouse condos” fill the size gap.

2) The opportunity.

- There’s a large need for warehouse space, BUT
- The typical industrial warehouse is too big. 
- So smaller warehouse condos fill it. 
- Some as little as 1,250 SF.

These assets provide real opportunities for the growing small business sector to be in a warehouse unit.

Pictured is our most recent warehouse condo development.

18-units. 12 of which were sold before we were done.

Have you heard of warehouse flex spaces?

I’ve invested in a $48,000,000 retail center.

I’ve invested in a $21,600,000 warehouse.

I’ve invested in a $18mm mixed-use build.

We’ve invested in these assets with our own capital, investor private equity, and local banking relationships.

Here’s 2 tips I recommend every LP follow:

1) Don’t take risks you don’t know.

- Jon Gray of Blackstone has an amazing quote for this: 
- “You don’t get outsized returns without taking risk,” 
- “but we take risk we understand.”

LESSON:

As an LP, your job is to understand the risk you’re taking. 
Then make a decision based on what you know. 
Getting the process right is your goal. 
Not the outcome right.

2) Don’t invest in products not needed.

- Invest in projects with a proven need in the community. 
- What do I mean by this? 
- The GP should prove to you the asset is in demand.

LESSON:

As an LP, have the GP prove to you their asset is needed. 
So if you’re investing in an apartment development. 
What research shows this asset is needed? 
Don’t invest if you’re not convinced.

P.S. What would you add to the list?

I recently spoke with an investor (who’s invested $10,000,000 into real estate in 2025) about our retail projects.

Here’s why they liked retail real estate in today’s market:

For investors, retail offers stability.

Here’s the 2 specific factors they mentioned that really stuck out:

1. Retail’s resilience in a Post-COVID world

• Retail has evolved.
• It’s no longer “big box or bust.”
• Consumers want experiences. 
• Food. Fitness. Service-based businesses. 
• Those tenants aren’t easily replaced by e-commerce.
• The result?
• Steady, in-person demand from businesses that thrive on foot traffic and convenience.

2.Income Diversity & Stability

• A well-built retail center has multiple tenants.
• Each with staggered lease terms.
• This creates diversified income streams.
• And when combined with built-in rental escalators?
• Investors gain consistent cash flow insulated from short-term market swings.

I’m curious, what’s your take on retail in 2025?

Are you looking at it?

If not, what asset type has your attention?

Our last flex-warehouse project sold for $6,000,000.

Here’s 7 lessons I’ve learned from building this asset class, and scaling Vision Development along the way:

1. The best projects start with the market in mind. You can’t just build and hope it leases. You have to know the unmet demand of the community & build according to the demand.

2. As an LP, the alignment of your risk tolerance with the capital structure & business plan is almost as important as the track record of the GP. 

3. A flex-warehouse is proof that you don’t need complexity to create value. Simplicity is a profitable business model.

4. As an LP, you must understand the development you invest in is only as good as the team you invest with.

5. The business is the tenant. As an LP, invest with GPs who understand what business they are in.

6. Family & faith come first. What you work for is more important than what you work on.

7. The profit is in the small details.

Which lesson stands out most to you?