Grupo Ferré Rangel has launched a new wholly owned subsidiary, Kingbird Properties, to expand its real estate portfolio in the United States and Latin America.
Kingbird Properties will be led by Kenneth Munkacy as it senior managing director. He brings to the company more than 25 years of U.S. and international real estate investment experience. And Antonio Luis Ferré Rangel, chief operations officer of Grupo Ferré Rangel, will serve as Kingbird Properties chairman and CEO.
“Kingbird has the right strategy for the opportunities in the markets we want,” said Munkacy in an interview. “There are tremendous risk-adjusted investment opportunities in the workforce housing sector. As a result, our associated investors want to diversify their portfolio with investments in the United States and Latin American residential markets.”
Grupo Ferré Rangel is a family office that owns and invests in a consumer-centric diversified portfolio that includes media, real estate, printing, distribution and digital marketing solutions industries. The company holds real estate in Puerto Rico, including City View Plaza, a unique class A real estate development in the San Juan metro area, as well as in the continental United States and Chile.
Munkacy added, “There are a lot of supply and demand imbalances in the secondary and tertiary markets. Families with incomes under $75,000 can’t afford newly constructed apartments. As a result, there is considerable demand pressure on the workforce housing units, which is chronically underserved.”
The real estate sector offers compelling risk-adjusted opportunities for family offices right now, and there is an enhanced appreciation for this risk- return investment profile in both the U.S. and Latin America.
Kingbird Properties’ investment approach will be to seek risk-adjusted opportunities to expand their portfolio in the United States and in Latin America, particularly in secondary and tertiary U.S. markets. They will use the family office’s own capital, and form partnerships with third-party investors, other family offices and local operating partners. Investments are expected to commence immediately in the Indianapolis and Columbus, Ohio, markets, and then expand into other markets thereafter.
“We see great potential to focus on long-term value creation by working with other investors to capture opportunities in secondary and tertiary markets. We see growing demand in smaller cities, particularly in the workforce housing subsector,” said Antonio Luis Ferré Rangel, in a statement.
Munkacy added, “We are looking for joint venture partners who have vertically integrated real estate operating companies with experience in adding value to apartment projects. Our local partners will have strong property management and capital improvement track records that will drive rents and help reposition the assets. We are targeting assets between $20 million and $60 million and are taking a long-term hold perspective.”
Munkacy has worked on real estate investments and managed real estate operating platforms and projects in 15 states and 16 countries. He joins Kingbird Properties after 10 years with Boston-based GID Investment Advisors, where he was a member of its executive committee and was responsible for its international real estate strategy, investments, joint ventures and portfolio companies. Munkacy previously held senior executive positions with GE Capital, Starwood Capital, TrizecHahn, and Golub & Company. He currently serves as vice chairman of the Global Exchange Council with the Urban Land Institute and is a member of Pension Real Estate Association.