Insights from Blueprint: OpCo-PropCo Models

Thesis Driven dives deep into emerging themes and real estate operating models. This week’s letter shares perspectives and insights on the OpCo-PropCo model from the recent Blueprint real estate tech conference.

Last week we hosted a live discussion at Blueprint on the future of the OpCo-PropCo model. Panelists included:

• Ryan Freedman, General Partner, Alpaca VC 
• Tom Rockford, Vice President, Barclays 
• Jason Fudin, CEO & Co-Founder, Placemakr

We’ve written at length about the OpCo-PropCo model here at Thesis Driven. OpCo-PropCo structures enable real estate operators and entrepreneurs to pair high-octane venture investments with real estate capital, putting each to its best use. But these structures can be complex and come with risks. Today’s letter will cover the takeaways from the Blueprint discussion, including:

• When OpCo-PropCo structures are useful;
• How the panelists have seen OpCo-PropCo structures successful deployed;
• Structuring questions and pitfalls;
• Investor interest and perspectives on the OpCo-PropCo model;
• The future of the model and recommendations for entrepreneurs.