One of the alternative investment vehicles we often talk about is real estate. The fact of the matter is, even with market dips, real estate delivers great returns over long periods of time. It is an important component of a diversified portfolio, a great hedge against inflation, and offers decent cash flow, should specific criteria be met.
Exposure to real estate is important in alternative investing, and one of our partners in this arena is 13th Floor Investments. 13th Floor is a boutique investment and development firm focused on value-investments in Florida and the Southeast US. The firm has managed over $3.6B in real property since inception.
Value-add real estate investments provide excellent room for growth through potential cash flows after the value-creating initiatives have been completed. These initiatives can come in the form of renovations, upgrades, management improvement, and other maintenance activities to increase the property’s value.
13th Floor’s focus on value-add properties and their experience with creative structuring and deal -making make them a perfect investment for our Alternative Asset Trust.
Our partnership with the company has started in 2008 when MAAM founder, David MacNicol, met Arnaud Karsenti through a real estate conference.
Arnaud is a seasoned real estate investor and a Managing Partner at 13th Floor. He walked us through the growth and earnings forecast of the company, showing tremendous opportunities even amidst the credit crisis. This brief encounter has made way for a profitable partnership that stands strong for over a decade now.
Today, 13th Floor focuses on multi-family and mixed-use developments, including redevelopment of non-operational golf courses into residential townhouses and villas. Their in-house development team allows them to work on the projects from start to finish, with the quality they expect and desire.
Want to diversify your portfolio through value-add real estate investments? Talk with one of our portfolio managers today.