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Rob Gritz

Background​

  • President and CEO of Texas Global Equity and Texas Growth Fund (Austin-based)
  • Extensive private equity and investment banking background
  • Previously worked at Credit Suisse, First Boston (CSFB), Kluge & Company
  • Worked for "the richest man in the United States for a decade" - John Kluge - who was #1 on Forbes 400 but largely unknown to the public
  • UT Austin undergrad (1983-1987), studied business, banking, corporate finance, and securities law
  • Eastern European Jewish background ("from Central Casting")
  • Physical description: Short stature (got "nailed by Grandma Annie" at 4'10" while rest of family are "monster Jews" over 6'4")

Company & Business Model​

Texas Global Equity​

  • Private equity firm specializing in real estate investment
  • Managed six real estate private equity funds with 100% success track record
  • Over $500M in construction costs, $800M in project value
  • 33.0% to 45.0% minimum IRR for equity investors
  • Exclusive EB-5 capital partner to City of Austin
  • "Virtual enterprise with the city, the county, and the state" - official public-private partnership status through RFP

Investment Philosophy​

  • Focuses on "Warren Buffett 101" - buying at market troughs
  • Opportunistic during down cycles when other developers can't get financing
  • Strategic partnerships with government entities
  • Asset-light monetization strategies during land banking phases

Current Major Projects (as of July 2025)​

Third and Congress ($46M acquisition)​

  • 1.2 acres surrounding prestigious Austonian building
  • Purchased from Nate Paul receivership at 67% discount
  • Was under contract to Wildcat (PE firm) for $95M - they walked away
  • Plans for tallest building west of Chicago (1,300+ feet)
  • Mixed use: condos, office, hotel (three separate entrances)
  • Currently generates $2.5M annual revenue (covers interest after Alpha School lease expires)
  • Cash flow positive with $60M loan at SOFR+500 (~8%)

99 Trinity ($41M acquisition)​

  • Located between Four Seasons and future Waterline development
  • Near new $250M Waller Creek trail project
  • Warehouse space for events (hosted 4,000-person South by Southwest events)
  • Positioned to benefit from I-35 burial project ($7B city investment)
  • Adjacent to future $2.5B UT medical facility

Waterloo Park Central Project​

  • Five-acre development in "hidden in plain sight" downtown location
  • View of Moody Amphitheater, UT campus, future medical district
  • Part of larger 10-year strategy with four high-rise developments

Financing & Investment Structure​

  • $60M debt secured on both major projects (60% LTV)
  • $35M equity needed ($20M for Third/Congress, $15M for 99 Trinity)
  • Two-year interest reserve provided by lender
  • Raising money from individual investors as "club deal"
  • Uses subscription model - investors lock in current pricing but get 2-3X lift when construction financing kicks in

Strategic Partnerships​

  • Randall Mays: College friend, Clear Channel family, billionaire backer providing $20M
  • City partnerships: Official development partner status with Austin
  • Live Nation connections: Through Randall Mays (founding chairman)
  • Mexican bank: Primary lender when US banks pulled back

Personal & Family Heritage​

  • Grandmother Annie: Holocaust survivor who built largest liquor store chain in DC with African-American partners
  • Strong African-American community connections in Austin
  • Female African-American development partner for East Austin projects
  • Partnerships with Ebenezer Church and St. James Church (30+ acres)

Development Philosophy & Social Impact​

  • "2028 Plan": Reversing the 1928 racist zoning laws that forced African-Americans east of I-35
  • "Austin High Life": Brand for reintegrating Black East Austin with downtown
  • Griffin and Gospel project: High-rise in Black cultural district with live gospel venue
  • Live music venues on 6th floor of all buildings (North, South, East, West locations)
  • Focus on placemaking and community building, not just profit

Personal Interests & Lifestyle​

  • Lives in high-rise apartment overlooking his Waterloo Park project
  • Walks Waller Creek trail daily
  • Art collector (mentioned "unscheduled purchase of art" causing cash flow constraints)
  • In litigation to recover $30M from former partner Aspen Heights (suing for $130M)
  • $50K/month legal costs for ongoing litigation

Investment Challenges & Opportunities​

  • Currently raising final $35M for land acquisitions
  • Timing market bottom in Austin real estate cycle
  • Competing with perception that "Austin's done" while positioning for next upturn
  • Banking relationship constraints due to down market

Key Quotes​

  • "It is literally impossible for us to get blown up" (on their financing structure)
  • "We don't fucking care. We're doing it anyway" (on buying during down market)
  • "Hidden in plain sight" (describing their development locations)
  • "We are more closely allied with the city of Austin, the state of Texas, and the county of Travis than any other commercial [developer]"

Interactions with Gary Sheng​

  • 2025-07-10: Extended meeting at his apartment and tour of development sites
  • Presented detailed investment opportunity to Gary, Matt Holm, and Zachary Smith
  • Revealed that Alpha School rents space in one of his buildings (Gary didn't know)
  • Expressed interest in connecting with Gary's network for investment opportunities

Notes​

  • Highly sophisticated operator combining private equity background with local government partnerships
  • Strong track record but currently in capital-raising mode during market downturn
  • Represents rare opportunity to invest in prime Austin real estate at significant discount
  • Complex personality: brilliant strategist but can be verbose and overwhelming in presentations
  • Clear vision for Austin's future development and his role in shaping it

Transcripts​

Transcript IDDateSummary
2025-07-10-rob-gritz-real-estate-investment-presentation2025-07-10Extended real estate investment presentation and site tour covering Austin development opportunities and market strategy