Advising Family Offices on Complex Real Estate Investments Requires a Specialized, Bespoke Approach

As family offices consider including sophisticated real estate investment strategies in their holdings, they are seeking qualified professionals who can not only perform diligence and close these complex deals but, just as importantly, provide the personalized service to which they are accustomed. Family offices have unique characteristics that differentiate them from other investors, and working effectively with them requires a customized approach.

The number of U.S.-based family offices exploded after a pivotal 2017 ruling in a lawsuit filed against the Internal Revenue Service by the Lender’s Bagels family, which paved the way for favorable tax treatment for family offices. This trend is expected to continue in the coming years, particularly as the wealth of the super-rich continues to skyrocket and lucrative investment opportunities continue to emerge in today’s dynamic real estate market. Consider: Despite the COVID-19 pandemic, an estimated 86% of family offices experienced growth during 2021, with a 58% increase in assets under management, and returns averaging near 20%, according to the 2021 Campden Family Office Report. Clearly, this massive market growth has created attractive new opportunities for a full spectrum of professionals to serve these family offices, including lawyers, bankers and other lenders, accountants, real estate developers and wealth managers.

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