Two ‘Unreal’ Guys Team Up

In 2021, two college buddies co-founded Unreal Capital, which specializes in identifying, acquiring, and “executing on value-add and opportunistic projects” in the Southeast. Through Unreal, Jared Barnett and Spencer Coan work directly with strategic partners in a joint venture capacity that uses a programmatic approach to real estate investments rather than a fund structure.

Barnett said, “Our team has a strong knowledge of real estate and business operations and takes pride in being a generalist — investing where deals present themselves (primarily real estate, but not exclusively) and adapting to the constantly changing state of the economy.”

Spencer Coan co-founded Unreal Capital with Jared Barnett.

Unreal Capital is their answer to inserting creativity into an industry that often takes itself too seriously. Coan said, “While real estate is our primary focus, we don’t limit ourselves to one class of investment in the future. Jared’s substantial experience in business formation and growth and my financial acumen may lead to a substantial investment opportunity down the line — we are often evaluating new business ideas and concepts.”

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In terms of top deals, they are just now entering the disposition phase of UC investments (their typical hold period is three to five years). One of their top upcoming deals aims to be Paulding Place, a 50,000-square-foot shopping center on seven-plus acres, located a block down from WellStar Paulding Hospital. They purchased the deal off-market and had to navigate through an inherited lawsuit, but the asset is expected to sell in the near future and have a substantial equity multiple.

While Unreal Capital is not opposed to working with institutional capital partners, their preference has been to work with private investors with whom they have developed relationships over time. They pride themselves on being inclusive for many investors who don’t typically have the opportunity to partner up with private commercial real estate.

Barnett explained, “Many other funds require a minimum of $500,000 and offer little to no communication in return. Over time, our investment pool has grown from secondary and tertiary introductions.”

Jared Barnett met Coan in college and went on to co-found Unreal Capital with him.

Conjuring up a funky office, last year they purchased a defunct church with two buildings on half an acre in Reynoldstown. The property on Memorial Drive is two blocks from the BeltLine (Muchacho/Madison Yards intersection) and happens to be across from a joint venture that Unreal Capital arranged at 1061 Memorial Drive, a 120,000-square-foot, future mixed-use climate-controlled self-storage development, with site work underway.

Coan stated, “While the church may be part of a larger development in the future, the ability to put our office into the Memorial corridor and reuse an eclectic building with stained glass windows and a lot of character was hard to pass up, especially because we have a number of ongoing projects nearby; and the property is walking distance from Jared’s and my respective homes.”

As two of only five Jewish members of their MBA class, Barnett and Coan hit it off from the jump. Prior to Unreal Capital, Coan was Senior Vice President at SK Commercial Realty, where he created the Investment Sales Division. Before that, he was Vice President and senior analyst at Ackerman & Co. and acquisitions analyst at Levy Affiliated Holdings in Santa Monica.

Throughout his career, Coan has participated in the acquisition and/or sale of more than $500 million of commercial property. Coan has an MBA in finance and real estate from the University of Georgia’s Terry School of Business, and a BA from the University of Michigan in organizational studies and communications. He is a certified commercial investment member (CCIM), a chartered alternative investment analyst (CAIA), a life member of the ATLCBR Million Dollar Club, and a recipient of the ATLCBR’s Phoenix Award.

This old church serves as the company’s headquarters and is a possible site for future development.

Prior to co-founding UC, Barnett was Vice President of Investments at SK Commercial Realty. Before enrolling in the JD/MBA program at the University of Georgia, Barnett co-founded and served as a managing partner of Insomnia Cookies. Barnett earned his JD from the University of Georgia School of Law and his MBA in real estate from the University of Georgia’s Terry College of Business. He holds a BA in history and a minor in real estate and urban development from the University of Pennsylvania. He is a member of the State Bar of Georgia and The Temple.