Understanding Private Equity Real Estate

An accomplished real estate development executive, Babak “Bobby” Bagheri founded North Development in 2020. As its owner, he oversees the firm’s day to day operations, including finance and staff management. Babak Bagheri also has extensive experience representing enterprises, individuals, and nonprofits in transaction structuring and private equity investments.

Private equity real estate is an alternative asset class made up of pooled private and public real estate assets that are professionally managed. Private equity real estate investing entails the purchase, financing, and direct/indirect ownership of a property or properties through an investment fund. Limited partnerships (LPs), limited liability corporations (LLCs), S-corps, collective investment trusts, and other legal structures are routinely used to pool private equity real estate assets.

Private equity real estate provides a multi-faceted approach to real estate ownership by employing an active management strategy. Real estate private equity sponsors engage in a wide range of property types, including new development and raw land holdings, total rehabilitation of existing properties, and cash injections into distressed assets. This sort of investment is ideal for high net worth individuals and organizations such as pension funds looking to invest in real estate equity and debt holdings.