High-net-worth investors are turning to real estate alternatives, with many joining multifamily offices to pool resources and expertise. Realm, a multifamily office investment platform, manages over $12 billion with clients averaging $200 million in assets. CEO Travis King highlights the benefits of collective investing for families seeking real estate opportunities.
Realm focuses on diverse real estate investments, moving across property types and geographies to capitalize on various market cycles. With over $12 billion in assets, Realm has the capacity to explore different deals and opportunities in the evolving real estate landscape. King emphasizes the importance of understanding both macro and micro market trends in real estate investments.
In the commercial real estate sector, King sees potential in the office space as pricing stabilizes in certain areas. With some properties selling at 15% of replacement cost, Realm is eyeing opportunities in office markets like Northern California. King’s strategic approach involves identifying intrinsic value rather than solely focusing on pricing, leading to well-informed investment decisions.
While some sectors may be considered overinvested, King avoids broad categories and focuses on niche opportunities in the lower middle market. By steering clear of heavily saturated sectors like data centers, Realm can capitalize on deals below $50 million. King emphasizes the importance of finding unique angles and avoiding crowded markets to maintain a competitive edge in real estate investments.
Reduced interest rates can benefit the real estate market by increasing transaction volume and boosting property values. King believes that lower interest rates would provide a favorable environment for real estate transactions, driving growth and value across the sector. Interest rate changes can have a significant impact on the real estate market, influencing investment decisions and market dynamics.
Read more at CNBC: How multifamily offices are playing commercial real estate