As the number of high-net-worth and ultra-high-net-worth individuals continues to grow, so does their appetite for alternative investments, particularly real estate. Yet, most of these investors limit their real estate investments to residential property or real estate investment trusts (REITs) instead of direct ownership in commercial property. In overlooking direct investment opportunities, however, these investors are missing out on a very effective tool to create wealth, many advisers contend.
“Qualified investors should strongly consider direct investments in commercial real estate,” suggests Dennis Moon, head of U.S. Trust’s Specialty Asset Management group, which includes real estate, timberland, farmland, oil and gas, and private businesses. “It provides customization that can help them achieve their specific financial goals along with unique benefits — tax and wealth planning for example, that only derive from direct ownership that frankly other forms of in