Here at McKenna Capital, we're thrilled to provide access to commercial real estate investments, because markets grow stronger when more people participate. We'd love to enhance your relationship with your advisor by sharing what we're doing and providing him or her information about your investments. As the fine print at the bottom of our website states: McKenna Capital is not a registered investment advisor (RIA), and we do not provide investment advice.
But that doesn’t mean we haven’t specifically developed our commercial real estate investment offerings to work in service of registered investment advisors and other financial professionals. McKenna Capital not only complements advisory services and facilitates investment management, but makes it easy for advisors to create value and attract more clients.
How McKenna Capital Works for—Not Against—Financial Advisors
Investors throughout the U.S. are taking greater interest in commercial real estate, and for good reason: real estate investment is an effective form of portfolio diversification. Given our strong economy, the current volatility in the stock market and the savings opportunities generated by the recent tax reform law, numerous market analysts believe now is an ideal time to invest in real estate.
To keep up with the demand, RIAs and other financial advisors are looking at new ways of connecting investors with real estate investment opportunities. Historically, advisors considering putting clients’ money to work in CRE have been limited to real estate investment trusts (REITs), which can carry significant upfront costs, deliver middling returns and are subject to the risks of any publicly-traded asset. McKenna Capital provides a viable alternative for investors to passively invest in institutional-quality, recession-resistant, real estate investments through private placement offerings. Our direct access allows investors to invest alongside experienced operating partners who have a proven track record of delivering attractive risk-adjusted returns.
For instance, McKenna Capital allows an investor who is interested in directly investing in CRE, but lacks the capital sufficient to purchase a large property outright, to participate in offerings alongside other high-net-worth individuals. Because of our unique structure and close relationships with many operating partners we make it possible for our investors to build even greater wealth by spreading money across multiple operators, geographies and asset classes.
We focus on three specific value-add investment niches (multifamily apartments, self-storage and manufactured home parks) because they are non-speculative and have consistently been the top performing asset classes in the real estate sector for decades. Whether you're in the camp that this economic expansion has long legs or you're starting to get concerned about how to protect your assets in a downturn and minimize damage, you should consider diversifying into these "all weather" assets. We believe one of the reasons they have performed so well for so long is that they handle downturns much better than other asset classes or real estate niches, thus recover faster with less damage to your returns while performing admirably well during good times.
At McKenna Capital, we welcome financial advisors and are happy to talk further to see if these types of alternative real estate investments are a good fit for your investment portfolio. There’s nothing to lose here, just an opportunity to generate more passive income and grow your wealth.