Covercy | Alternative Investment Opportunities

Multifamily Properties

While the market has cooled off some, industry experts remain optimistic: in its 2023 Multifamily Outlook Report, Freddie Mac expects market performance to pick up in the second half of the year, meaning multifamily properties will continue to be a stable asset class for the foreseeable future.

Self-Storage Facilities

Before investing in a self-storage facility, it's essential to assess whether it fits with your company's investment strategy and philosophy, and whether your investors would be keen on funding such an opportunity, despite its current popularity.

Hospitality

The hospitality industry is experiencing a construction boom, with a 14 percent year-over-year increase in new builds planned over the next 12 months, according to a recent report from Lodging Econometrics. However, an alternative perspective has emerged, as many firms and investors are evaluating the conversion of hospitality properties into multifamily housing.

Conversions

Whether it’s an office building with a high vacancyConverting one asset to another type is common in commercial real estate, tied to local trends or growing needs, such as population shifts. For example, an underperforming office building in a trendy neighborhood may be converted into a multifamily property. Mixed-use conversions may also be advantageous for retail opportunities.

Ebook Sneak Peek⬇️

With many of these sectors still shifting in light of the current economic climate and other factors, GPs of commercial real estate firms may want to consider alternative investment assets to expand their portfolios & continue generating revenues and supporting investors’ goals. To that end, alternative investments are a growing opportunity for GPs and investors alike. They’re by no means new, but including them in your assets under management is a great way to diversify your overall portfolio, mitigate risks associated with traditional investments and assets, and capitalize on properties that have consistent, reliable demand. Here, we’ll explore a few of these asset types and what you as a GP should consider to make your endeavor into them successful.