Real estate capital raising and syndication
Family Office Investor Mandate: Sun Belt Real Estate and Direct Deals
Single Family Office & Direct Investment Investor Mandate Interview
Capital raisers, real estate sponsors and operators who want to understand how a Sun Belt family office describes its mandate and priorities.
Said on the call
"We're allocators, but we're also very focused on operational and direct deals."
"I wouldn't say that all multifamily is doing well, but where you are, it's held up very well."
"Markets like Austin, even San Antonio and in Dallas Fort Worth, have held up much better. So you still have delinquencies, but they're still in the single digits."
What you will hear
Christian describes his team as allocators who also focus on operational and direct deals. Their commercial real estate work is concentrated in the Sun Belt. Other capital goes into public markets, private deals and angel deals. The team is based in Austin, Texas. Richard C. Wilson interviews him about mandate, geography and what the team is watching during the pandemic.
Christian says the team has moved toward a more defensive position, with more real income, hard assets and commodities. They made moves into energy early in the downturn and like multifamily and housing. He adds that multifamily results depend on location. Houston has seen delinquencies of 15 to 20 percent, while Austin, San Antonio and Dallas Fort Worth stay in single digits.
On the record
- The team is based in Austin, Texas and focuses its commercial real estate on the Sun Belt.
- Houston multifamily delinquencies rose to 15 to 20 percent, according to Christian.
- The team's investments range from public markets to private deals and angel deals.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Single Family Office & Direct Investment Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
5 key takeaways
- Know your investor type. Christian calls his team allocators that also focus on operational and direct deals. A clear self-description helps other investors and sponsors see where they fit.
- Geography shapes the mandate. Commercial real estate is focused on the Sun Belt. Other investments and allocations are broader, covering public markets, private deals and angel deals.
- Defensive positioning in a downturn. Christian suggests that moving to a more defensive allocation is not necessarily a bad thing. His team has added real income producing assets, hard assets and commodities.
- Multifamily depends on location. Houston saw delinquencies of 15 to 20 percent. Austin, San Antonio and Dallas Fort Worth held up better, with delinquencies still in the single digits.
- Energy and housing are focus areas. The team made moves into energy early during the downturn and has seen it bounce back. They also like multifamily and housing because those categories have weathered the downturn well.
Related questions
- How much of my own money should a sponsor co-invest?A sponsor should put in an amount that is meaningful to them, and there is no universal number.
- What is a joint venture equity partner in real estate?A joint venture equity partner in real estate is a partner who puts up equity capital for a project while another party, the sponsor, finds the deal and runs it.
- How do I raise capital for a hotel purchase?Many hotel buyers fund the equity through joint ventures with family offices and wealthy individuals, then add debt on top.
Questions about this video
What type of investor is Christian?
He describes his team as allocators that are also very focused on operational and direct deals. They invest across public markets, private deals and angel deals.
Where does the team focus on real estate?
On the commercial real estate side, the team is very focused on the Sun Belt area. The team is based in Austin, Texas.
How has multifamily performed according to Christian?
He says it depends on location. Houston delinquencies rose to 15 to 20 percent, while Austin, San Antonio and Dallas Fort Worth remained in the single digits.
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