Essential Housing: Stability Through Market Cycles
Key Investment Rationale:
Demographic Momentum
The national rental housing market continues to benefit from powerful demographic shifts, with millennials delaying homeownership and baby boomers increasingly downsizing to rental properties. These trends have maintained national multifamily occupancy rates above 95% for the past decade, creating sustained demand regardless of economic conditions.
Inflation Protection
Residential real estate has historically served as an effective inflation hedge, with urban multifamily properties experiencing 3.8% average annual rent growth over the past 15 years, outpacing inflation by approximately 1.2% annually. This characteristic is particularly valuable in today's economic environment.
Economic Cycle Resilience
During the last three economic downturns, Class B/C multifamily properties maintained the highest rent collection rates among all commercial real estate sectors at 94.3%, demonstrating the prioritization of housing expenses even during financial hardship.
By targeting urban and suburban submarkets with strong employment diversity, limited new supply pipelines, and evolving renter preferences, our housing investments aim to deliver both consistent cash flow and appreciation potential for our investors.
Self Storage: Recession-Resistant Assets with Technological Upside
Key Investment Rationale:
Exceptional Risk-Adjusted Returns
Self-storage has delivered the highest risk-adjusted returns of any commercial real estate sector over the past 25 years, with a 10.6% average annual total return and the lowest volatility among all major property types according to NAREIT data.
Technology-Driven Value Creation
Strategic technology implementation in self-storage assets has demonstrated the ability to increase NOI by 30-45% through reduced staffing requirements, enhanced security, and dynamic pricing algorithms that optimize revenue management.
Recession Resistance
During economic downturns, self-storage facilities consistently outperform other commercial property types, maintaining stable occupancy as both consumers and businesses require flexible storage solutions. During the last recession, self-storage was the only commercial real estate sector to post positive total returns.
Life Science Real Estate: Where Research Meets Returns
Key Investment Rationale:
Institutional-Grade Tenants
Healthcare real estate benefits from high-credit tenancy, with 62% of lab space nationwide leased by public companies and research institutions with strong balance sheets. These tenants demonstrate 82% renewal rates compared to 67% for traditional office tenants.
Premium Rental Rates
Specialized medical and life science properties command premium rents averaging 32% higher than traditional office space in the same markets, while experiencing 78% lower default rates during economic downturns.
Barriers to Competition
The specialized infrastructure requirements of life science facilities—including enhanced HVAC, floor loading capacity, and power systems—create significant barriers to entry that protect well-positioned assets from competition and contribute to sustained rent growth.
Strategic Industrial: The E-Commerce Advantage
Key Investment Rationale:
E-Commerce Driven Demand
E-commerce fulfillment requires approximately 3x more warehouse space than traditional retail distribution, driving sustained industrial absorption with over 450 million square feet of new space demanded annually since 2020.
Urban Infill Premium
Last-mile distribution facilities in proximity to urban population centers command rent premiums of 45-70% over traditional industrial properties, as retailers prioritize delivery speed over real estate costs to meet consumer expectations.
Supply-Demand Imbalance
Limited developable land in key logistics markets has created a structural imbalance between supply and demand, with markets like Southern California, New York, and Miami maintaining industrial vacancy rates below 3.5% and experiencing double-digit annual rent growth.