How BlackTusk Group uses location intelligence to make faster, smarter site decisions
“We use the Locate feature to find properties, we really pride ourselves on trying to find off market opportunities, so properties that are not being widely marketed either by a brokerage or on MLS.”
- Aaron Yick, Principal at BlackTusk Group Inc.
At Ratio.City we have the pleasure of serving a variety of customers within the planning and real estate development industry from both the public and private sectors. We value connecting with industry professionals because it helps us ensure that our platform meets the needs of users.
Talking to customers is one of my favourite parts of the job, and recently, I had the opportunity to catch up, with Aaron Yick, co-founder of BlackTusk Group (BTG), a real estate private equity firm based in Toronto and a Ratio.City customer since 2021. BTG focuses on transit-oriented, mostly mid-rise and high-rise, high density development. During our chat, we discussed how BTG got its start, operating as a two-man team, and their hope for future advancements in the industry.
Meet BlackTusk Group Inc.
Prior to BlackTusk, Aaron Yick worked at in the Real Estate Investment Banking group at TD Securities which is where he met the other BTG co-founder, Thaine Carter.
“At the time, I (Aaron) was on the real estate corporate banking team and Thaine was on the real estate brokerage team. We worked together for six years, lending to, advising, and financing the largest institutional real estate owners and developers in Canada and parts of the US.”
Over time, Aaron and Thaine realized they had similar career aspirations, “at some point, we knew we wanted to do something a little more entrepreneurial, we decided that it was the right time for us to make that leap,” and that is what they did. Following two years of planning, BTG was officially launched in 2021.
Operating as a Two-Man Team
Currently BTG is a two-man team, which Aaron says has its advantages, one being quicker decision making –
“anytime a larger firm is looking to do any kind of acquisition, there are defined steps, there is an investment committee. So, being able to just sit across from Thaine, and talk for 5 minutes to make a decision keeps things very nimble. It allows us to pivot and explore new opportunities.”
Aaron and Thaine wear many hats requiring them to balance a wide range of responsibilities, and work long hours, which they are familiar with from their investment banking days. How do they manage it all?
“We outsource as much of the consultant work as we can, including lawyers, accountants, bookkeepers, and architects. We also leverage as much technology as possible,” as a result, subscriptions to platforms like Zonda, Altus, and CRM are the biggest line in their budget. Platform and newsletter subscriptions are some of the ways they source important information about ongoing developments, developer activity, and who is buying and selling. Aaron explained, “In our industry, knowledge is extremely important and it’s a huge competitive advantage. Unlike the public stock market, a lot of real estate and real estate development information is closely held, and people don’t like to necessarily share it.”
In terms of other software, “obviously Ratio.City is a big one that we leverage. We use the Locate function to find properties, we really pride ourselves on trying to find off market opportunities, so properties that are not being widely marketed either by a brokerage or on MLS.” When a broker brings BTG a property that’s on the market, they use Explore Mode as an initial sniff test - “it tells us about the zoning, the size of the site, distance to the closest transit station, and prior to having Ratio.City we’d have to look that up in a bunch of different locations.” The Develop tool helps BTG understand the density potential of a site – “being able to incorporate angular planes, setbacks, tower separation is easy to do with a development project. It gives us a very preliminary look before spending on architects, planning consultants, etc.”
Why BTG Can Exist Today – Technological Advancements
Aaron believes that without the current technologies, BTG might not have been able to operate 10 years ago -
“it would have been much more challenging for us on both a time and cost basis. The time it would take for us to diligence one site has been significantly cut by our ability to use Ratio.City and other tools. We look at dozens, if not hundreds, of sites before we actually hone in and try to acquire one. The quicker we are able to assess and say yes or no, the better we are able to operate.” He added, “from a time perspective, these tools allow us to look at way more properties than we ever could have 10 years ago. Before, we probably would have had to rely on consultants to help us do this work which would significantly increase the due diligence cost for a site. Being a small start-up with limited capital would severely limit the number of sites we would be able to assess, and we probably would have run out of capital very quickly before we were actually able to acquire anything and move forward with a project.”
So, what type of industry advancements is BTG hoping for in the next 5 years?
“AI and its proliferation. It has not really taken hold in the real estate industry yet. Most people would say that it’s because the industry is very old school and resistant to change.” Aaron is hoping that won’t continue to be the case and that nimbler developers will be able to change that. “There are a number of use cases that I would like to see AI implemented in throughout the development process that I’m hoping come to fruition and I’m hoping platforms like yours are speaking to developers about these opportunities.”
Advice for Getting Started in the Industry
Aaron’s advice for those getting started in the real estate development industry: be nimble, willing to learn, and curious. Go into the office because it is easier to learn from others in person. Finally, develop your network, “relationships are extremely valuable in the industry. It’s a very tight knit community and information is closely held so you often hear about things over drinks, coffee or lunches.”
BTG currently has three projects on the go in the GTA – take a look!
As Aaron said, developing your network is important, and a great place to do that is in our Planning and Housing LinkedIn Group. It is a place where industry members can engage in meaningful discussions, share best practices and explore GIS-driven solutions that are shaping the future of housing and urban development. As a member you can also share your own success stories and engage in conversations with your peers. Check it out and share your story!
Curious how this could work for your team? In just 15 minutes, we’ll show you our features and how to streamline your due diligence processes.