opportunity to buy these properties at the right price are fewer and farther between than any time in recent years. We have the most success identifying distressed properties we are well- equipped to manage. These properties can generate the high risk-adjusted returns we require. With that said, we have continued our efforts to analyze data and trends, as well as pair that with anecdotal and qualitative data we receive on a regular basis to create investment opportunities we feel will generate exceptional risk-adjusted returns. As we evaluate the real estate market as a whole, and especially other property types and sectors, we notice other supply/demand imbalances that are riper for the picking than multifamily is today. The areas where we are especially interested today are in neighborhood retail, neighborhood office, well- located Class A office, and flex industrial properties. Why are each of these compelling to us at this time? We have data and anecdotal evidence to support that on the physical supply/demand side, we have stronger physical demand than is largely believed to exist standing against a flat or flattening supply. On the capital markets side, these
properties are trading at spreads above their historical cap rates. What this means is these properties are performing better physically than the market believes; yet the capital markets, due to some foundational misunderstanding about these properties, are not highly demanding these properties, bringing asset prices to historical lows. If you believe capital demand for these assets will come back once these assets have a longer time to prove their resilience and necessity in the physical marketplace, as we do, then now is the time to acquire these properties at a discounted price and be in a position to sell back into a higher capital demand (thus, higher priced) market. Although the majority of our strategy focuses on value-add and core plus assets, we have also identified opportunities for ground-up development where there are unique and profound supply demand imbalances. These can be found in particular markets and submarkets today in multifamily, build-to-rent (BTR), and industrial where new Class A properties are often selling for well above completion costs. We will pursue opportunities in these strategies with the right partners at the right time
as they become available; however, we do principally believe the majority of ours and our investors’ portfolios are better off in the value-add and core-plus strategies. When you can start with evaluating risk, your investment thesis can be formed, tested, and reformed. It seems these days, you need to be testing more often than not.
Logan Freeman brings over five years of real estate experience to the team. He started his real estate career with a single-family rental
portfolio where he executed over $50 million in acquisitions. From there, he moved to Clemons Real Estate where he was the leading salesperson year over year as he created, lead, and executed a unique strategy for representing buyers in 1031 transactions. Freeman oversees the Investor Relations and Marketing Divisions at FTW Investments and contributes heavily to its project sourcing and capital raising efforts. He leads XchangeCRE, an affiliate of the firm that assists 1031 exchange investors in identifying replacement properties and other tax-advantaged reinvestment strategies, including TIC investments with FTW Investments. He leverages his people skills and transaction background to drive new acquisitions, capital raising, and investor relations. Freeman is a voting member of the firm’s investment committee..
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