Is Investing In Private Real Estate Right For You?
Living and working in the dynamic and rapidly growing Pacific Northwest we are experiencing firsthand the rise in real estate values. For many, the topic of investing in “private” real estate is something that isn’t given much thought outside of a media headline or when it occasionally pops up at a happy hour with friends talking about financial planning. Deciding whether real estate investing is the right move can feel daunting, but you may be happily surprised to learn that it doesn’t have to be that way.
The recent “Beyond the Buy: Private Real Estate Edition” event hosted by Cornerstone Advisors was a good opportunity to attend a primer to learn more. Dave Freudenberg, who leads Cornerstone’s Real Estate practice and his associate, Evan Wirkkala presented a Private Real Estate overview to a crowd of over one hundred interested Cornerstone clients and prospective clients. The room had a vibrant, enthusiastic energy and it was clear there was a lot of interest and optimism in the topic.
Dave introduced the session with an overview of the commercial real estate market cycle and shared insights of successful real estate investing. Evan followed by talking us through opportunity assessment and trend identification. To bring all of this to life he highlighted select transactions including Seattle’s iconic Smith Tower and a Chelsea (NYC) Historic renovation of an original Siegal & Cooper Warehouse that is now the East Coast HQ for Twitter.
After the presentation, there was an opportunity to mingle with some of the attendees who were consistently buzzing about a few of the key take-aways:
- Cornerstone has a long-standing track record of experience and success rooted in strategic involvement in dynamic markets across the US.
- The real estate team’s sweet spot is in identifying and working with partners who have expertise in their local markets and can execute to create value and generate attractive returns. Their expertise in selecting investment managers who are patient, disciplined and who can showcase repeatable, measured success speaks for itself over the last two decades.
- Cornerstone’s real estate funds allow individual investors access to unique opportunities; participation in these funds to date has yielded strong returns for clients demonstrating that it can be a real growth driver.
While not all investors are at the point of diversifying their portfolio with private real estate (suitable for those with >$5MM total investable assets), attendees were confident that they have a partner in Cornerstone — experts who empower them with knowledge, experience and the tools they need to evaluate investment options that suit their goals and financial planning aspirations.