37th Parallel Properties

And when you do that, what becomes painfully obvious is that the average individual retail investor’s asset allocation model is vastly different than the average institutional investor. Institutional Investors incorporate far more alternative asset investments in their asset allocation models than individual investors. The research also shows the shift to alternative assets continues apace and marks two decades of considerable change in pension fund asset allocation globally. Real estate, stocks, and bonds are the big three of investments that all investors should consider when looking at asset allocation models to create their portfolio.

In their publication, “Direct real estate’s potential to improve returns and reduce risk for target date funds,” they show why adding direct real estate to target funds can be advantageous. Evaluating 20-year data ending December 31, 2019, they found that direct real estate offered strong return fundamentals and low volatility in comparison to U. S. stocks, international stocks, U.S. bonds, and REITS. Direct investment in real estate offers the potential to improve the outcomes of target date funds. Studies show that adding direct fractional real estate to a portfolio of stocks and bonds increased the return and decreased the volatility.

(“37th Parallel”) is pleased to announce the recent acquisition of Hawthorne at Clairmont, a 269-unit, 2009-built multifamily asset located in Atlanta, GA, on behalf of their investors and joint venture partner, Sophus Investments. This investment gives us the opportunity to secure a core-plus, institutional-quality asset at an attractive basis, with both revenue and operational upside potential,” said Doug Fraser, who leads the acquisition efforts for the firm. With only one multifamily asset under construction in the submarket, a mid-rise product with replacement costs well in excess of our asset’s all-in basis, we expect the supply shortfall to put upwards pressure on rental rates, helping us to capitalize on our business plan. The Hawthorne acquisition, structured as a joint venture with Sophus Investments, was funded with a blend of 1031 Exchange equity, 37th Parallel Fund I equity, and new investor capital from Sophus Investments.

How To Invest In Commercial Real Estate – Syndication I’ll start with syndication since it’s the most transparent and direct way to invest. Unfortunately, REIT investors lose the tax benefits that direct investors receive. REIT investors don’t profit from the tax deferral benefits that commercial real estate investors enjoy. Also, many of those REIT investors are disappointed to learn that REITs are historically much more correlated to the broader market than direct ownership of commercial real estate.