Keith Lampi, President and CEO of Inland Real Estate Investment Corporation, joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Summit to discuss investing in alternative real estate property types.
Inland Real Estate Investment Corporation is the largest of the Inland companies. Over the last sixty years, Inland has managed real estate through many different market cycles.
Core real estate property types include retail, industrial, office, and multifamily. Inland’s focus is on alternative property types, such as self-storage, student housing, senior living, and manufactured housing. Lampi notes that these property types benefit from demographic trends and may be less sensitive to economic cycles. Over the last fifteen years, institutional investors have shown a growing demand for real estate in these niche sectors.
Inland makes these property investments available in a number of ways, including 1031 funds, qualified opportunity zone (QOZ) funds, and private placements for high-net-worth investors. Inland’s NAV REIT makes these alternative property types available to mass affluent investors.
Financial advisors can serve and grow their client base by having knowledge of tax-advantaged real estate investment structures. Inland was a pioneer in the securitized 1031 space. Under a section 1031 exchange, an investor can sell a property and reinvest the proceeds into another property while deferring the capital gains tax liability for the sale of the property. An investor can move from an individual property to another property in a 1031 exchange and later contribute that property to a diversified fund (UPREIT) organized under section 721.
Inland supports financial advisors through a consultative and educational approach. Inland can discuss the nuances of these transactions. Lampi sees opportunities driven by supply and demand fundamentals across the alternative property types. Supply has been low in many property sectors, while declining prices may represent a buying opportunity, especially if and when interest rate levels and volatility decline.
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