Summary
In this live-recorded episode of The Blueprint Tour from the 2024 CREI Summit in Atlanta, hosts Kenneth Shultz and Carter Huddleston sit down with Zach Molzer, a Kansas City–based real estate developer known for his rapid, trust-driven approach to adaptive reuse and multifamily projects. At just 23, Zach is leading a $35M+ historic high-rise conversion—turning a 16-story building into 122 apartments—while demonstrating how transparency, speed, and technical excellence can transform complex projects into lasting success.
The conversation dives deep into how Zach builds and maintains trust with limited partners through bi-weekly reporting, shares both wins and setbacks in real time, and involves trade partners as investors to align incentives. He breaks down his process for assembling an A-team of architects, engineers, and contractors, compressing timelines from months to weeks, and navigating the deeply political side of urban development.
Along the way, the trio explores the engineering and financial realities of adaptive reuse projects: why four-pipe systems and dedicated air strategies outperform “value-engineered” shortcuts, how to plan future upgrades by converting an elevator shaft into an MEP chase, and why master metering often beats individual metering in tight urban footprints. Zach also unpacks how subcontractors are investing alongside him, how creative capital structures build stronger deals, and why he’s targeting a 6.5% unlevered yield on cost using untrended rents to protect investors from macro risks.
Candid, insightful, and packed with practical takeaways, this episode is a blueprint for developers, investors, and engineers who want to build trust, deliver results, and future-proof their projects in today’s multifamily market.
Keywords
CREI Summit, real estate development, Zach Molzer, adaptive reuse, multifamily housing, historic tax credits, four-pipe system, MEP engineering, capital stack, LP reporting, investor trust, unlevered yield on cost, Kansas City real estate, development strategy, missing middle housing
Takeaways
Trust is everything: Bi-weekly investor reporting builds credibility and alignment from day one.
Speed needs the right team: Top architects, engineers, and GCs can compress project timelines from months to weeks.
Future-proof design matters: Converting an elevator shaft into an MEP chase allows easy system upgrades decades later.
Engineering decisions drive outcomes: Four-pipe systems, DOAS, and master metering can make or break multifamily retrofits.
Capital can come from anywhere: Trade partners investing as LPs align incentives and add expertise.
Underwrite conservatively: Base returns on untrended rents and target a 6.5% unlevered yield on cost.
Sound Bites
“The first project isn’t about getting rich—it’s about building your name and making your partners money.”
“Do it once, and do it right. That’s how you future-proof a building.”
“I’m not raising money on guesses. It has to math right now.”
“Subcontractors should have skin in the game. If they believe in their work, why wouldn’t they invest?”
“Transparency builds trust. We share the good, the bad, and the ugly with our LPs every two weeks.”
Chapters
Welcome and CREI Summit Intro
Meet Zach Molzer: Kansas City Developer
How Transparency Builds Trust with LPs
Bi-Weekly Reporting and Investor Alignment
Assembling the A-Team: Architects, Engineers, and GCs
Politics, Incentives, and the Realities of Development
MEP Deep Dive: Four-Pipe Systems, DOAS, and Master Metering
Future-Proofing with MEP Chases and Vertical Space
Creative Capital: Subcontractors as Investors
Unlevered Yield on Cost and Untrended Rents Explained
Macro Outlook: Why Now Is the Time to Build
Final Thoughts and Where to Find Zach
Where to Find Zach Molzer
Twitter · LinkedIn · Molzer Development
Where to Find The Blueprint Tour
YouTube · TikTok · TheBPTour.com · Kenneth Shultz (Host) · Carter Huddleston (Host)
