If you’ve grown wary of the prolonged bull market in public equities, cryptocurrency, middle market corporate credit, etc. and are looking for an undervalued asset class, it doesn’t take a die-hard contrarian investor to see the opportunity in private real estate today.
The below chart from AEW recently caught our attention. The capital value component of the NCREIF NPI Index, when adjusted for inflation, is at the lowest level since the fourth quarter of 2009 - the trough of the Global Financial Crisis – which was arguably the most attractive entry point for commercial real estate since World War II given the outsized total returns that followed.
If you are an RIA interested in exploring opportunities in real assets, including private real estate, we welcome you to contact us today.