F FOUNDATIONS
FAMILY OFFICE AND HIGH NET WORTH EXPERTS OFFER INDUSTRY INSIGHTS
BY HE ATHER NOEL
High net worth and family office investments were the focus during the Feb. 22 “Industry Insights” event from The Real Estate Council and Real Estate Deal Sheet. The 2017 event series led off with keynote speaker John Calandro’s dive into the stock market and future growth projections. Following his presentation, representatives from family and high net worth offices gave their take on the current market and how it’s impacting their approaches to investments. Here are some takeaways:
JOHN CALANDRO
KEVIN YOUNGBLOOD
MICHAEL SMITH
“We think we’re in a secular bull market. We think there’s a lot to go. We have some great drivers — real estate is one of the biggest ones that we have right now. And, we’re on our way to a 40,000 Dow.”
“We like the South Dallas industrial market. We’re looking at an assemblage of 120 acres down there. Other than that, we’re revisiting some of the markets that perhaps get overlooked. Everybody wants to be in Frisco, but we’re combing over Mansfield, Rockwall, Garland, Mesquite, Grand Prairie, east McKinney, and north Fort Worth.”
“We’re putting assets to work for multi-generations and are very rarely sellers. We’re starting to look more into some limited partnership-type investments but for the most part, we’re putting capital to work for the long term.”
J. SEARCY
WILLIAM FLAHERTY
BILL VANDERSTRAATEN
“We’re going to see a tick up in the cap rates. My career has been the lowest they’ve ever been. So, I would say [we’re] just being conservative and being really careful. When we look at real estate to make the final decision we ask, ‘Are we comfortable holding it through a dialed down cycle? Do we really like this asset?’”
“We’ve turned to development a fair bit in this cycle, and we’ve done it for two reasons: The first being that we get a slightly better yield, and we’re willing to take the risk as long as we can manage the time frame. But, more importantly than that, I think it’s really important that we construct the property we want as a long-term holder.”
“The beauty of a family office is you can move with the market as you see things happening down the road. You can adjust without having to go back and get the approval of 16 partners. That’s been advantageous for us. As you see certain parts of the market maturing, you can shift into areas that feel like they have more margin.”
MATT MILDREN
KING SCOVELL
ELIZABETH LUND
“We have 26 investments now, and we’re just trying to remain as patient as we can. We’re cash flow buyers whether it’s retail, industrial, multifamily — we’re just trying to get a good yield. It doesn’t have to be day one, but within the first year.”
“Historically, on the big deals, we come with the GP capital and then raise institutional capital. Lately, we’ve formed a few different platforms to capitalize our assets through friends and family.”
“Family offices that their wealth originally came from real estate are still playing. If family wealth was not in real estate, they’re starting to sit on the sidelines a little bit.”
THE CALANDRO GROUP
TAILWIND REAL ESTATE EQUITIES LLC
TUG HILL REAL ESTATE PARTNERS
1 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
SOWELL & CO.
ROSEWOOD PROPERTY CO.
WOODBINE DEVELOPMENT CORP
TRT HOLDINGS INC.
CHIEF PARTNERS LP
PALETTE INVESTMENT CO. (RAY L. HUNT FAMILY OFFICE)
SPRING 2017