The Black Creek Diversified Property Fund (Class I Share) returned 7.09 percent over five years under Recknor’s guidance. The fund is a net asset value real estate investment trust that invests in real estate from the ground up.
Recknor said he likes to invest in properties in areas where there are tight restrictions on development, including Los Angeles and New Jersey. “The longer you hold on to these assets, the harder they are to duplicate. They produce a good return over time,” he said.
Jack Goldberg, an associate in the equity division of Time Equities Inc., is a contrarian who said he is favoring industrial warehouses and grocery store-based retail. “Amazon and Home Depot will be reconfiguring their delivery channels for years and are accelerating their reach. I’m still long on warehouses,” said Goldberg, who has helped guide the firm’s TEI Diversified Income & Opportunity private equity funds to success. The funds seek to provide investors with a 6 percent distribution rate (paid quarterly) and year-end bonus distributions with the objective of returning 100 percent of an investor’s capital over a seven-year period.
Time Equities has been in the real estate investment and development business for more than 50 years and owns 300 properties worldwide. Unlike many real estate investment firms, the firm is buying brick and mortar with a focus on retail. But it has to be the right retail, Goldberg said. “We’re buying a lot of brick and mortar from REITs at deep discounts, but we like shopping centers in communities that need them—places where people rely on the center for haircuts, urgent care, restaurants and theaters.”
Goldberg said the fund likes multi-tenant properties, which are less risky. “Our interest continues to be on needs-based, grocery store-centered retail, which we think will be a continuing commerce phenom,” he added.