The field of real estate is often associated with the words “profitable” or “high margin”. However, the reality of real estate has always been about adding value to the most important tangible asset. In ground reality, real estate is linked with every aspect of human life and that explains the importance of real estate.
Understanding the preposition of value in the real estate market and how it influences life and everything that comes with it, Agustin Tristan, the founder and CEO of Lexington Capital, has carved a name for himself and his company in one of the most valued real estate markets.
In conversation with us, he walks us through his journey and how his unique vision of adding value to people’s lives made him one of the most impactful and influential leaders in the industry.
So, without further ado, let’s get started.
The First Sneak Peek
Talking about his first exposure to the real estate industry, Agustin says, ‘I started my first real estate project in Mexico back in 2008 (great timing!) when I was 22 years old while I was in college at the University of Alabama. I had secured a property owner that was going to contribute the land to the project and I had also secured funding from the US to do my first real estate development in Mexico. Unfortunately, we all know what happened so thanks to the crisis my investor backed out and I was forced to focus on school.’
The Inception of Lexington Capital
Before directly entering the market, Agustin worked with some of the most prominent companies in the world. Throwing back to his journey he says, ‘I worked for Goldman Sachs in NY for five years after grad school but I had always had a passion for starting businesses and identifying new areas of opportunity. Lexington Capital is focused on developing infrastructure projects, real estate, and agriculture projects. We also have a venture capital arm that invests in start-ups and we play a very active role in building those businesses. Our real estate vertical is focused on secondary touristic locations and mid-sized cities which are markets that most developers and investors don´t pay attention to and have huge potential.’
Lexington Capital’s Success Story
When we asked about one of the successful projects of Lexington Capital, Agustin happily expressed, ‘Our most successful project is called “Terranda” which is in a historic town called Mineral de Pozos in Guanajuato, Mexico, not far from the beautiful San Miguel de Allende. Terranda is a mixed-use sustainable development of 800+ acres that has 12 magical “Haciendas” inside which used to be mining estates from the late 1500´s and are now in ruins. I joke that these ruins are the Mexican version of the Parthenon-Acropolis and our plan is to develop a unique thematic project in each of the Haciendas.’
‘At the moment we have started the first residential project, a vineyard, an olive tree and agave plantation, a real estate project focused around Mezcal with a boutique hotel, an equestrian project, a linear park similar to the New York High Line, a Thematic Park with multiple countries where you will be able to “travel” to Spain, Tuscany and the Netherlands, and a golf course with a high-end resort,’ he further adds.
Aiming for Sustainability
Understanding that sustainability and innovation as the two pillars of Lexington Capital’s vision, he explains, ‘All our verticals have a sustainability focus. Our real estate projects go through a rigorous process where we get them EDGE-certified by the IFC (World Bank). Our vision is highly committed to the environment, with a strong focus on water and also having a positive impact on the community. In regards to innovation, we like having a first-mover advantage and always coming up with a new product for the market. For example, for our strategy which is focused on mid-sized cities, we developed the first apartment complex in those mid-sized cities where we have developed with a rooftop full of amenities.’
He further adds sayings, ‘Our buyers/tenants can enjoy the views of the city for the first time on a rooftop where they can swim, go to the gym or grill out. This concept may seem quite normal in cities like New York but it is not the case in most of the mid-sized cities in developing economies. We have also innovated by combining real estate with our water and agriculture expertise so we can create a unique concept with an agriculture experience such as the vineyards or the Mezcal. We were also the first developer in Mexico to implement vertical farming in our real estate projects so tenants can prepare their own salad with the freshest and healthiest ingredients using the Freight Farms technology, a Boston-based company that is the leader in the industry.’
Further talking about attaining stability with growth, Agustin says, ‘With the inflation levels that we have seen over the last few years, we have to be smarter about how we use raw materials and create designs that are more efficient from an energy and water consumption perspective. Clients are now looking for projects that have a positive impact on the environment.’
Future Roadmap
Envisioning the future of Lexington Capital for 2024 and beyond, Agustin shares, ‘We are in the process of taking three other companies public this year which is quite exciting, even in a challenging market like the one we are in. I believe that when you manage to have success in a volatile and difficult environment, it makes you stronger and prepares you for better times ahead. Aside from these capital market achievements, we also plan to continue to develop multiple water projects (desalination, aqueducts, and water treatment facilities) given the water crisis that we are experiencing globally, continue to develop Food & Agriculture projects as we need to feed more people with fewer resources, and lastly, focus on Terranda as we strongly believe we are developing the best sustainable real estate project in the region.’
‘I am just excited about what the next years will bring for the group and the team we have built to be able to execute across all these verticals. Sometimes I want to press the fast-forward button and see where we will be in five to ten years but I have learned to enjoy the journey with all its ups and downs,’ he explains.
Passing on the Batton
Advising the young minds entering the field of real estate, Agustin suggests saying, ‘Look for new areas of opportunity and don´t try to replicate what others are doing. It is important to build your own investment thesis and development style so you can stand out from others.’
