Family Office Real Estate Blog

Richard Wilson, the CEO of the Wilson Family Office has been doing a fantastic job at providing family office education for years now. Below is from a recent email that I received that discusses how one Single Family Office wants someone to go about contacting her. In the following recent interview Richard Wilson shared his conversation that he conducted with Elizabeth Hammack who has worked for the single family office C.M. Capital for a number of years and now serves as Executive Director of the C.M. Capital Foundation. Elizabeth shared some great advice for anyone who is looking to partner with family offices, raise capital, or just know how to contact a single family office when you don't already have the relationship. Richard Wilson : How do you deal with the overwhelming amount of inquiries you undoubtedly receive from those trying to raise capital from your family office for their investment fund or private offering? Elizabeth Hammack: Well, first we are pret

Two of the traditional means for institutional investors to privately invest in commercial real estate are the commingled fund and the joint venture (JV) with an operating partner. The commingled fund typically has a large number of investors. The general partner or investment manager has the discretion to purchase, finance, manage and sell a portfolio of properties that it selects at its discretion, according to some fairly broad investment criteria. The general partner customarily receives a management fee of up to 2%, and carried interest distributions of 20% of profits after the investors receive some preferred return.  In contrast, a real estate JV usually consists of a single “money” partner and an operating partner, and invests only in properties that have been preapproved by the money partner. The money partner also has veto rights over financings, business plans, dispositions and other major decisions. The operating partner often puts in a larger percentage of the capital

Global Family Office Report 2015: Largest Family Office Research Study undertaken offers insight into family office investments in real estate  The average family office portfolio allocates approximately 13% to real estate, and there is a home bias in holdings according to The Global Family Office Report 2015, produced by Campden Wealth Research, in partnership with UBS.  The average family office, with assets under management of USD 806 million, invested approximately USD 105 million in real estate activity in 2014, be it in residential or commercial real estate.  Family offices prefer to invest locally or nationally for both commercial and residential property. Since real estate direct investment typically takes place in-house, this may be a reflection of the local knowledge and skill set of the staff. Where investments are made further afield, they are made with the expectations of higher returns, with international or regional investments coming with significant premium

Looking forward to participating in the upcoming IMN Family Office Real Estate in may Forum http://www.imn.org/real-estate/conference/Real-Estate-Family-Office-West-2016/Agenda.html

The following blog is from my partner at usfamilyofficerealestate.com.  Akhil Patel from the firm Ascendant Strategy (www.theascendantstrategy.com) explains why the following deals show that the property cycle is in full swing. In July 2015, German lender, Commerzbank, sold two commercial real estate portfolios for around $2.9 billion . It’s not a particularly remarkable story but I am bringing it to your attention because it’s an important part of the 18 year cycle, particularly the first half of the cycle – the de-leveraging process. US funds have been in the vanguard of this process. Having snapped up loan portfolios from US banks in the wake of the 2008/09 financial crisis, they are doing the same in Europe following the Eurozone crisis . The strong dollar gives them additional firepower as well. Note some of the key facts in the article – all classic elements of the cycle:          The bank had to be bailed out by the German government with an $18.2 billio

Look for the upcoming article in the Spring Issue of Family Office Elite. Real Estate In The Family Office Portfolio "How to Add Quality Real Estate to Your Portfolio"                                                      By DJ Van Keuren