Dear Investor-
North American Pension Plans collectively own trillions of dollars worth of assets. These large institutional investors have multi-million dollar highly-experienced research departments to do in-depth professional research that the vast majority of individual investors can't do.
Individual investors have a different advantage. We can see where they invest, why they invest, and follow their lead.
Naturally, commercial real estate is a large, stable, and profitable part of institutional portfolios.
In fact, over the last decade pension plans have doubled their real estate holdings from $3 trillion to $6 trillion. With a volatile stock market and large numbers of baby boomers retiring every day, they're looking to add even more real estate to their portfolios to meet their long-term obligations.
Pension plans' $3 trillion expansion of their real estate holdings was far more focused than in the past. They have been divesting their retail and office holdings while adding more multifamily.
The rationale is pretty obvious, especially after the past few years. Multifamily performed very well during the pandemic and has historically performed well during recessions. It's also a proven inflation hedge.
Multifamily can also provide blended returns with yields that have been superior to bonds and equity growth that can be on par with or greater than the stock market (with far less volatility).
Multifamily, like all direct real estate, had been considered an alternative investment. But, professional institutional investors consider it to be an essential portfolio component. And, we can all follow in these institutions highly successful footsteps.
One of the companies I invest with is 37th Parallel Properties. Since their inception in 2008, they have a 100% profitable multifamily track record for their investors. With nearly $1 Billion dollars in transactions, they've maintained a net average annual return of 18% to investors.
(By way of disclosure, we have an advertising relationship with 37th Parallel, meaning we get paid for making this introduction. As always with these types of deals, consider this an introduction and not a recommendation. Every deal is unique and the responsibility to vet any and every deal you invest in still lies with you).
37th Parallel's successful Fund I is closed to new investment, but we now have the opportunity to invest in their Income and Total Return Fund II platform that just launched earlier this month.
Fund II has two separate share classes. One is focused on current income. The other is focused on enhanced total returns. And, you can combine the two based on your investment goals.
We strongly recommend you take a look at their newest offering. And keep in mind, as part of the WCI investor family, you get unique fee discounts not available to other investors.
Learn More About 37th Parallel Today!
Have a great day!
Jim and Brett
James M. Dahle, MD, FACEP
Founder, The White Coat Investor
Brett Stevens, MBA
COO, The White Coat Investor
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