Investment Management

Yes, as the market evolves seasoned commercial real estate firms are targeting properties overlooked with operational deficiencies, adding to upside returns.

• Core Investing – Purchase of property that generates long-term income. The properties are occupied by tenants and are typically investment grade tenants.
• Core-Plus Investing – Acquisition of a property that needs some minor repairs or renovations that generates relatively stable income. These properties are about a decade old and after repairs, the income they generate are offset by higher income, NOI returned to the investor.
• Value-Add – Property with existing income but potential to increase that cash flow with significant property improvements or repositioning the property.
• Opportunistic Investing – Riskiest investment due to the condition of the properties. These properties need total renovation with little to no cash flow. However, the potential for the return can be incredibly high.  Foreclosures and bankruptcies generally fall in this category.

A commercial property fund is a form of property investment whereby investors buy a share of a commercial asset held in a professionally managed LLC. Choosing to go it alone and invest in commercial real estate one property at a time adds a significant level of risk that you can avoid by investing in a fund. By diversifying the collection of commercial property in a fund, the fund manager can provide you with more security for your portfolio, professionally managed and leased.

Banks consider this asset class to be risky for their High Net Worth investors while this investment category is widely accessible to HNW investors with proven sponsors.

The typical structure of a family office investment program consists of an executive team, an investment team, and a back office. Family offices can be structured as traditional corporations or limited liability companies. Some family offices may also use a family investment company model.