Real Estate

U.S. family offices’ interest in real estate investments — which had declined in the late 2010s as offices looked to diversify their investments — is picking up again, especially when it comes to multifamily and industrial real estate.

Rental properties can be good investments, but operational challenges may make some family offices shy away. Mike Hills is vice president of capital markets at Atlas Real Estate, which partners with family offices to invest in the build-to-rent (BTR) and single-family rental (SFR) market in 14 states. He talks about the benefits and challenges of this type of real estate investment.

There are signs of life in the family office real estate deal market, according to PwC’s Global Family Office Deals Study 2024. The study found that both the volume and the value of family office real estate deals peaked at the end of 2021. And although volume has remained flat, deal values have started trending up again, which could signal a recovery.

Custom residential construction projects for wealthy families and family offices require expert management to navigate complexities such as due diligence, budgeting, and coordination among architects, contractors, and other stakeholders.

Seth Chadwell, president of Kibo Capital, highlights the unique advantages real estate offers family offices, including tax benefits, cash flow, and sentimental value, while emphasizing the importance of a qualified team to manage these assets. Kibo Capital’s integrated model, developed for a Tennessee-based family, aims to provide tailored real estate solutions to family offices, bridging the gap between outsourcing and building in-house teams.