×

Tanner Mainstain Encourages Clients to Invest in Real Estate

In 40 years, Bill Tanner and Peter Mainstain have seen a lot of changes in the real estate market. Prices skyrocketed in the ‘70s — particularly in Southern California — and continued to rise over the decades. While there have been cycles of boom and bust, real estate’s long-term upward trajectory has been more than healthy enough to make it the cornerstone of the firm’s investment strategy.

“We haven’t missed a year of investing in real estate, not only in Los Angeles, but throughout the United States,” says Tanner. “With specific general partners that Peter and I invest with first, we test the market, how they report and all the variables, and, once it comes back to us that they’re successful in their endeavor with us, we bring in our clients to invest as well. We’re limited partners in everything we do, meaning we have no liability.”

At first, they focused on apartments and storage facilities, then branched out into small shopping centers that would generally include a supermarket, a liquor store, and several other small businesses such as nail salons.

“The typical shopping center we invested in was 100,000 to 150,000 square feet,” says Mainstain. “That sounds like a lot, but it’s a lot different than your typical Westfield mall. Those are 500,000 to a million square feet.”

Over the years, Tanner Mainstain’s shopping center investments have trended smaller, as tenants have shifted from retail stores like Best Buy and the now-defunct Circuit City to service businesses such as restaurants and gyms.

“Even the retailers that have stayed in business don’t use as much space as they used to,” observes Mainstain. “They’re carrying less inventory and trying to have a duplicate strategy, both on the internet and in a retail space.”

These days, Tanner Mainstain’s real estate investments are increasingly focusing on assisted-living facilities, which are rising in demand as the baby boomers age, and apartment buildings outside Southern California. “It’s hard to find ones that make sense financially in L.A.,” Mainstain says.

According to the duo, current real-estate investment hot spots include growing tech hub Portland, Ore., and Reno, where electric car manufacturer Tesla is building a $5 billion battery factory.

The population for the Reno-Sparks metropolitan area is 400,000, “and they’re expecting it to go to 600,000 within four years,” says Mainstain. “That’s a huge increase. They have to live somewhere, buy groceries, go out to restaurants.”

Popular on Variety

More Biz

  • Barron HiltonBarron Hilton 1990

    Famed Hotelier Barron Hilton Dies at 91

    Barron Hilton, a famed hotelier who helped expand the Hilton Hotels empire and a founding owner of the Chargers NFL football team, has died, the Conrad N. Hilton Foundation announced. He was 91. “Today the world of hospitality mourns for one of the greats. Barron Hilton was an incredible family man, business leader and philanthropist. [...]

  • Patrick Whitesell and Ari Emanuel WME

    Endeavor Targets Sept. 27 for Stock Debut, IPO Video Tells Company's Origin Story

    After years of preparation, Endeavor is set to make its formal Wall Street debut on Sept. 27, when its stock will begin trading on the New York Stock Exchange. Endeavor has targeted Sept. 26 for the final pricing of its shares. The stock will trade publicly the following day. Earlier this week, Endeavor said its [...]

  • Netflix - Apple TV

    Netflix Stock Drops After CEO Acknowledges 'Tough Competition' Coming From Disney, Apple

    Netflix shares fell as much as 7% Friday to a nine-month low, coming after CEO Reed Hastings commented that the November launches of Disney Plus and Apple TV Plus will introduce a “whole new world” of competition. Hastings, speaking at the Royal Television Society conference Friday in Cambridge, England, said, “While we’ve been competing with [...]

  • Charlie Rose Sexual Harassment

    Charlie Rose Sued for Sexual Harassment by Longtime Makeup Artist

    A makeup artist who worked for Charlie Rose for 22 years has filed a sexual harassment lawsuit, accusing the former CBS and PBS host of years of unlawful behavior toward female employees. Gina Riggi alleges that Rose was verbally abusive with her and would often make derogatory comments about her weight. She also alleges that [...]

  • Rob Stringer

    Sony Music Chief Rob Stringer on Sustaining Growth and Recovering From the 'Dark Times'

    The Goldman Sachs Communacopia conference, now in its 28th year, gives top executives at major companies the opportunity to make their case to investors — and the Goldman analysts the opportunity to keep things on the up and up. While the analysts don’t necessarily grill the executives, they don’t lob softball questions either. That was [...]

  • Frank Grillo'Avengers: Endgame' Film Premiere, Arrivals,

    Matt Phelps Tapped as President of Joe Carnahan, Frank Grillo's Warparty

    Frank Grillo and Joe Carnahan’s Warparty productikon banner has appointed Matt Phelps president of the company. Phelps will head the Los Angeles office and be responsible for overseeing all film and television projects. “We searched long and hard to find the right fit for Warparty and felt that Matt embodied everything that we were looking [...]

  • Jack Gilardi, Longtime ICM Partners Agent,

    Jack Gilardi, Longtime ICM Partners Agent, Dies at 88

    Jack Gilardi, a longtime ICM Partners agent who represented such stars as Burt Reynolds, Sylvester Stallone, Jerry Lewis, Charlton Heston and Shirley MacLaine, died Thursday at his home in Los Angeles. He was 88. Gilardi was known for his gentlemanly style, love of the Los Angeles Dodgers and his skill at representing top actors. He [...]

More From Our Brands

Access exclusive content