Lower risk.
Attractive returns.
Tax-efficient.
Multifamily has historically generated stronger, risk-adjusted returns than other property types—and with favorable tax advantage.
*Bubble sizes represent the sharpe-ratio for each property type—a measure of excess return, above the risk-free rate, per unit of risk for a given property type. Represents the average annual risk-adjusted return over a 10-year hold period, using a dataset from 1987 to 2016. Source: National Council of Real Estate Investment Fiduciaries (NCREIF).
Why Multifamily?
Multifamily has a 30-year history as one of the strongest performing real estate asset classes and is highly resilient when compared to other commercial real estate sectors.
Tax advantages
Taxed at lower rates and potential for interest and depreciation expense, which can defer taxable income.
Wealth preservation
Current income with long-term capital appreciation potential.
Less volatility
The value of multifamily real estate is not tied to the broader markets and their volatility.
Diversified benefits
Current income with long-term capital appreciation potential.
Inflation hedge
Annual multifamily rental income increases tend to rise over time, along with property value.
Competitive returns
Direct real estate has provided better risk-adjusted returns than any asset class in the last 20 years.