Direct Real Estate Preferred Equity Income Opportunity in Multi-Family
By Time Equities Inc.
May 25, 2020
Real Estate
May 25, 2020
Preferred Equity Investments - Income Structure Offering Attractive Returns
In evaluating real estate opportunities, the core tenants of evaluation do not change even as markets boom and recede. Your appetite for alpha and risk may change but solid investments in real estate can and do in most cases weather the storms.
We interviewed Francis Greenberger, the renowned founder of TIME EQUITIES INC (“TEI”), to get his perspective on how he looks at the real estate investment selection process and why he is taking a unique approach by providing high-quality projects directly to investors.
Typically in the past, these types of high profile, alpha, and income-generating multi-use mega real estate projects have not been available to investors directly. Capacity in these opportunities has been typically filled by intermediary funds. TEI has recently launched its latest development project, a 72 story, 656,000 sq ft luxury residential condo/rental tower in downtown Chicago called 1000 South Michigan Avenue (“1000M”).
The 4 Tenants of Real Estate Investments for Multi-Family
When reviewing opportunities there are several core salient guidelines identified and built over a lifetime of investing. Francis walks us through his top 4 selection parameters and how his 1000M development primarily fits within each parameter.
1. For investors, the value must be clear. Overall the asset has the possibility to be developed and deliver above-average returns for investors.
- A location that fully captures upside potential, purchased with strong value and opportunity.
- Well thought out investment/product offering that maximizes returns, meanwhile protecting the downside and isolating risk.
- Significant alignment of interest provided by the developer.
Location: TEI’s network sources off-market deals that offer low land basis and attractive investment characteristics.
Investment structure offering:
- Direct to investor - no middle man receiving management or performance fees.
- Flexible - uniquely devised, proven business strategy to offer durable returns and timely liquidity for investors.
- Risk-Adjusted - added sponsor/developer significant co-invest.
Product offering: