Family Office Real Estate Blog

A question that I get asked often is my thoughts on international capital and foreign family offices investing into US Real Estate.  Does the amount of international capital coming to the US continue to increase? Yes.  For those that are looking to sell in major markets like NYC, LA or Miami this is great as they drive down cap raps and sometimes to the point where you are left scratching your head.   There are a number of good reasons for this influx of international capital and Charles Clinton, the CEO of EquityMultiple Inc., does a good job discussing this in the latest electronic version of National Real Estate Investor. While global volatility will have both positive and negative effects on the U.S. economy , the country’s commercial real estate market stands to gain from upheaval abroad in the short to medium term. The U.S. economy still has a relatively stable outlook due to strong underlying market fundamentals, and global volatility will result in an influx of capital in U.

For family offices new to the investment arena I thought I would share some insight as to the types of real estate investments that are available.   These types are defined as Core, Core Plus, Value Add, and Opportunistic.  Most commercial real estate investors will focus one or two of these strategies when investing.  Core: These are fully stabilized properties with credit quality tenants on long term leases.  These investments are well located in primary and secondary markets.  Usually these properties are purchased by institutional investors that are looking for a a safe reliable return.  Core investments in commercial real estate are often purchased as a way to diversify an investment portfolio. Core Plus:  Investors who generally want a safe return, but are looking for a little bit of upside prefer Core Plus.  These properties are match the physical description of Core investments, but usually have some opportunity to increase the Net Operating Income or NOI.  A common Core P

In a recent post by www.famcap.com they discuss how family office direct investing drives real estate deals. REAL ESTATE DEALS DRIVE FAMILY OFFICE DIRECT INVESTING Family Capital     July 14, 2016 The number of deals involving real estate is a big part of the current direct deal boom driven by family offices, as the world’s wealthiest investors bet on strong property demand in the top real estate markets. Just this week the family office of Stefan Persson, Sweden’s wealthiest individual and the chairman of the fashion chain H&M,  was reported  to have purchased a retail property complex in central London for a massive £400 million. If the deal goes through, it will be a big vote of confidence in the London commercial property market after the recent turmoil brought about by Brexit. It will also be indicative of how family offices are often able to take riskier investment bets than their institutional counterparts. After Brexit, many institutional and retail investors pulled mo