Roers looks to family offices as it plots real estate expansion
Roers — a full-service construction, property management and real estate firm — is expanding its financing base with a dedicated RIA and family office.
The firm offers high-net-worth investors private placement access to syndicated real estate in the multi-family space, given the increased demand for owning more direct real estate in their portfolios, said Jeff Grant, senior managing director of capital markets at Roers.
“The new allocation for family offices in this new economy is a 50/30/20 — 30 [percent] being in real estate and private credit,” he said.
The access to private real estate in an uncertain economy gives rise to the opportunity in multi-family housing, given that single-family home construction is slowing. In addition, interest rates are pricing out potential homebuyers, creating sustained demand for rental housing.
In terms of real estate trends, Grant sees a continued migration to the “smile states” of Texas, Utah, Tennessee, Florida and the Carolinas, as well as a boom in the upper Midwest “flyover states” that tend to be very steady.
“We’ve done 27 projects in Minnesota in the last 11 years,” Grant said.
Family offices, he said, are more attracted to direct real estate, given that in other types of investment vehicles, such as REITS, aren’t sure where their money is going.
“What they tend to like is that they know we’re building a project down the road, over there, and in a town that’s booming and businesses are moving to and they own 26 bricks in that building,” Grant said. “They know exactly what it looks like; and [they] can see it, touch it, taste it.”