Institutional Real Estate Direct Investments
Our risk-balanced, multi-family value-added strategy provides institutional investors with access to compelling direct investment opportunities and attractive risk-adjusted returns.
For institutional investors
Optimized asset performance
We believe that asset performance is optimized through the execution of a value-added property improvement plan emphasizing capital investments, revenue growth, expense controls, proactive asset management and repositioning of rents to market. Fundamental imbalances between user demand and market supply create compelling opportunities for value-added sector-focused managers to reposition and stabilize streams of income and sustain a steady appreciation of value.
Our capital partners benefit from:
Performance that is differentiated by portfolio diversification
Garden, mid-rise, high-rise
25-30 research approved US markets
Core plus, value-added, joint venture development / "build to core"
Transit hub, retail,
medical center, higher education
Real estate investing is unrelentingly local. Opportunities must be vetted submarket by submarket, block by block and property by property.
Value-added investing leverages the expertise of an operator to optimize the competitive positioning of assets.
It articulates a path to equity appreciation that is underwritten by the disciplined execution of a comprehensive capital improvement plan.
Repositioning the underperformance of Class A and B multifamily assets acquired at a discount to replacement cost, in prime submarkets where "barriers-to-entry" mitigate the risk of oversupply, is a cycle tested real estate investment discipline.
A "build to core" strategy limited to 25% of invested capital will emphasize construction in markets where cap rate compression has aggressively narrowed discount to replacement cost spreads and absorption confirms strong demand.
As a matter of principle and practice, the investment team has not used subscription lines / credit facilities in excess of 2% of committed capital in any fund.
The Fund's value added strategy is guided by a principle of generating demographically neutral outcomes. The success of our strategies is not dependent upon gentrifying portfolio properties.
Research is foundational to the goal of building a well-diversified portfolio of multifamily assets.
Allowable multifamily investments can only be sourced in research-approved target markets tracked by the investment team.
Top-down macro data informs the question of "where" and bottom-up research addresses the challenge of "which one" and at "what price." The broader bandwidth of national, regional and MSA research provides useful directional data. However, to execute at the transaction level, "boots on the ground" intel is required.
The investment team has acquired properties in more than 25 research approved markets including Atlanta, Austin, Boston, Charlotte, Chicago, Dallas, Delray Beach, Denver, Ft. Lauderdale, Greenville, Houston, Miami, Minneapolis, Nashville, Northern VA, NJ/NYC Metro, Orlando, Philadelphia, Phoenix, Portland, LA Metro, San Diego, Seattle, Tampa and Washington DC.
Tactical execution of the strategy incorporates the following investment themes: deep value-added repositioning, light value-added enhancement, value-added purchase and JV development | "build to core".
The investment team constructs a portfolio of properties with a weighting of risks, ranging from core+ to opportunistic, that is designed to generate risk-adjusted performance capable of realizing the return target of the fund and delivering compensation that reflects a value added risk/return profile.
Primary risk mitigators governing portfolio construction include:
Ground-up joint venture development limited to 25 percent
Leverage limited to 65 percent of portfolio market value
Risk-balanced (opportunistic j-curve exposure offset by core+ income)
Fund exposure capped at 20 percent per investment
290+ years of aggregated investment team experience and intellectual capital committed towards creating value in a property type that is fully aligned with their investment expertise.
Core members of the investment team have successfully invested together for over 20 years; diverse talent represents 50% of professional hires in IRED since 2014.
34,000 multifamily units acquired, managed, repositioned and sold by the investment team over time; equivalent to the average size of a publicly traded REIT.
A sector focused strategy in a favored property type reduces the risk of diversifying into underperforming sectors.
Mesirow Institutional Real Estate Direct (IRED) is structured to proactively optimize control over the investment process as a discretionary operator.
Flexibility is maximized to retain “Best in Class” property management support in the target markets where we invest. The best property manager in one market will not be the best in all markets.
IRED emphasizes the calling of limited partner capital to construct property portfolios.
Our quarterly email featuring insights on markets, sectors and investing in what matters
Institutional Real Estate Direct ("IRED") is a division of Mesirow Financial Investment Management, Inc., an SEC-registered investment advisor. Mesirow Financial refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial name and logo are registered service marks of Mesirow Financial Holdings, Inc., © 2022. All rights reserved. This communication contains confidential information. It is intended solely for the use of the addressee. If this information was received in error, you are strictly prohibited from disclosing, copying, distributing or using any of this information and are requested to contact the sender immediately and destroy the material in its entirety, whether electronic or hardcopy. Some information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions expressed are subject to change without notice. Nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy an interest in any Mesirow Financial investment vehicle(s). Any offer can only be made to Qualified or “accredited” investors through the appropriate Offering Memorandum. The Memorandum contains important information concerning risk factors and other material aspects of the investment and should be read carefully before an investment decision is made. Mesirow Financial does not provide legal or tax advice. It should not be assumed that any reference to past performance or recommendations incorporated herein will be profitable or will equal past performance. Projected or hypothetical or model performance information and results do not reflect actual trading or asset or fund advisory management; the results may not reflect the impact that material, economic and market factors may have had, may be materially different from actual results, and can reflect the benefit of hindsight on MFDRE’s decision-making if MFDRE were actually managing client’s money. It should be assumed that client returns will be reduced by advisory, management or any other such fees and expenses that may be incurred in the management of the account. Advisory Fees are described in MFDRE’s Part 2 of the Form ADV. Performance information provided also contemplates reinvestment of dividends. Any chart, graph, or formula should not be used by itself to make any trading or investment decision. Securities offered through Mesirow Financial, Inc., member FINRA and SIPC.
Real Estate assets under management are as of 12.31.2021 and include regulatory assets under management (gross asset value plus unfunded commitments). The most recent data is preliminary and estimated. Investment management services are provided through Mesirow Financial Investment Management, Inc. an SEC-registered investment advisor. Nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy an interest in any Mesirow investment vehicle. Any offer can only be made to Qualified and/or “accredited” investors as appropriately defined in the OM particular to any investment. The Memorandum contains important information concerning risk factors and other material aspects of the investment and should be read carefully before an investment decision is made.