Multifamily Offices: Investing in Commercial Real Estate
Key Takeaways from the CNBC Article on Realm, a Multifamily Office Investing in Real Estate:
Here’s a summary of the main points from the CNBC article:
* Rise of Multifamily Offices: High-net-worth family offices are increasingly pooling resources through multifamily offices to access larger and better real estate deals.
* Realm’s Model: Realm is a multifamily office investment platform with over $12 billion under management, catering to families with around $200 million in investable assets.
* Collective Strength: Realm’s CEO, Travis King, emphasizes that the power of the model lies in combining capital, relationships, and knowledge to make superior investment decisions.
* Institutional vs. family Office Allocations: While institutions have significantly increased their real estate allocations, family offices are still catching up, despite a strong desire to do so.
* Access to direct Real estate: Multifamily offices like Realm provide a way for families to access direct real estate investments without the time commitment and staffing requirements of managing properties themselves.
* Diversified Approach: Realm doesn’t focus on a single property type or geography. They leverage their scale to analyze a wide range of deals across different markets.
* Importance of Macro-Cycles: Realm recognizes the importance of understanding and working with the broader economic cycles in real estate, rather than fighting against them.
In essence, the article highlights a trend of collaboration among wealthy families to unlock opportunities in the real estate market that would be tough to access individually. Realm is presented as a key player facilitating this trend.