Family Office Real Estate Blog

Capital Scarcity Persists T here remains scheduled maturities in excess of $300 billion for each of the four years, 2014 through 2017. Most of this debt was underwritten during the peak of the last cycle from 2004 to 2007, when valuations were high and loan underwriting standards were loose, amortization disappeared and interest-only payment terms took its place. The majority of these loans are either under water (the loan is in excess of today's value of the property) or un-refinanceable, given today's lower asset valuations and more restrictive debt covenants. Additionally, a huge portion of the debt that matured during the 2009-2012 timeframe (per the graph below, in excess of $300 billion per year) has not yet been resolved.   Maturities Catalyze opportunity It has been "extended and pretended" and still awaits recapitalization and resolution. In other words,   the majority of the problem in CRE is still to be solved and the majority of the distre...

Reaching out to family offices in the hope of doing business together is something that people, including myself always wrestle with.   Some Family Offices are  easier to work with than others, and some have certain steps that they want you to take.   This post is from 5 Family Office Representatives that list what they suggest is t he best way for a new manager to approach a family office that they want to do business with :  CEO -  Single Family Office (SFO) The approach really depends on if we have an interest in the strategy the manager is presenting.  With that being said we are always looking for great new managers. PRESIDENT & CIO -  Single Family Office (SFO) Email / Call / Meeting.  Send Deck First! CIO//SENIRO WEALTH ADVISER AND PORTFOLIO MANAGER-  Multi Family Office (MFO) The team should be first rate, experienced and trustworthy.  The investment thesis must accord with Team experience and fit current ...

Often Family Offices don’t take advantage of networking with other family offices.  The resources and contacts that families have can benefit other families from investment ideas from Hedge Funds, Private Equity and Real Estate Opportunities from off market opportunities.  Family Offices are very open to relationships with other Family Offices and often they are not explored. The next time this opportunity presents itself, you should pursue a discussion.  You would be surprised where it could lead.