A-Rod On Making The Transition From MLB To CRE

What makes a successful commercial real estate investor? Turns out, it might not be that different from what makes a great batter in Major League Baseball.

That was one of the take-aways from this week’s Walker Webcast. In a special episode, Walker & Dunlop CEO Willy Walker joined Alex Rodriguez, best known for his legendary performance in baseball stadiums across the country, at Monument Capital Management's annual investor meeting.

A 14-time MLB All-Star and a 2009 World Series Champion with the New York Yankees, Rodriguez finished his 22-season baseball career with 696 home runs and 2,086 runs batted in.

But that was just the first game of a career double-header for Rodriguez.

Today, he is chairman and CEO of A-Rod Corp., an investment firm with holdings in the real estate, health and wellness, technology, sports and entertainment sectors. The A-Rod Corp. roster includes Monument, a $900M firm that specializes in multifamily properties in U.S. markets where there is strong demand for workforce housing.

Walker noted that Rodriguez was known for enjoying practicing and preparation even more than games. Rodriguez said that attitude not only made him a star as a professional athlete, but continues to help him in the business world.

“I'm a .295 career hitter, but I bet you that on my third at bat, I was probably about .330,” Rodriguez said. “And the reason is because I'm really good at pattern recognition. I'm not the smartest guy, but I am really hard-working, and when I see something once and I see it twice, I’ve got it.”

Rodriguez said a typical after-game routine for him was to study replays to see what he could learn from his and the opposing pitcher’s performance that day. Similarly, he kept notes on opposing teams and would begin to formulate his tactics a week before a game. 

So, when it came time to face his opponent, “I knew exactly what he’s going to do before he does it,” he said.

Rodriguez told Walker that he takes the same approach to business.

“I'm out there in the world thinking, ‘How can we bring value to our partners?’” he said. “I used to talk to Kobe Bryant about this all the time: You’ve got to be obsessed with the process, the pain of trying to reach perfection, even though perfection is not going to be there. But ultimately that is how we reach our potential, whatever that potential may be. That's what I'm looking for.”

Rodriguez, whose father abandoned his family when Rodriguez was 9 years old, said he was fortunate to have strong role models later in life, whether they were school coaches or more-seasoned business leaders. One of them is Warren Buffett, who insured the young rookie’s first contract with the Texas Rangers and whom he describes as “a great friend and mentor for over 20 years.”

“Warren keeps things simple,” Rodriguez said. “No. 1, he says, always be a gentleman and character is most important. He buys great businesses at a fair price, not a fair business at a great price. And then, invest like you want to own this for years to come. I mean, he really keeps it pretty simple. He says to make two or three big decisions a year, sometimes every couple years. You don't have to swing at every pitch because you wait for your pitch.”

That sort of discipline guides his decision-making in CRE investments, Rodriguez added.

“Over the years we've been approached by so many people saying, ‘Why don't you get into malls? Or warehouses?’” he said. “[Monument Chief Investment Officer] Stuart Zook says, ‘Look, here’s what we do: We do apartments, we do it better than anybody and that's the only thing we do.’ In a world where everyone's trying to scale and diversify, being a master of one thing is our greatest asset.” 

Walker asked whether Monument investors need to be concerned that Rodriguez’s recent purchase of the Minnesota Timberwolves and Lynx basketball franchises might distract him from his work in CRE. 

“I'm out there representing all of us [and] I'm always looking for opportunities,” Rodriguez said. “I think that the Timberwolves [purchase] enhances the opportunity for everyone here, because when you own these franchises, you get to connect with so many people.”

Ever a team player, Rodriguez ended his conversation with Walker by reminding the live audience that they all play for the same team — one that gave him the opportunity to rise from a kid whose family lived on food stamps to become a top ballplayer and businessman.

“There’s so much noise in the world today and I hear so much nonsense about ‘blue’ or ‘red,’ and I think we have to remember that we live in the greatest country in the world,” he said. “This is all about red, white and blue, right? We have to wear that United States jersey all the time. And we have to have pride, we have to listen to each other and we have to be respectful.” 

For information about the Walker Webcast, visit here.

This article was produced in collaboration between Walker & Dunlop and Studio B. Bisnow news staff was not involved in the production of this content.

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