Comprehensive transaction expertise
Principal Real Estate Investors offers investors holistic transaction expertise, with capabilities in asset management, acquisitions, dispositions, and property development.
Our asset management team, comprised of 53 investment professionals with an average of 18 years of industry experience, is responsible for the day-to-day execution of our clients’ goals and objectives. Our team is actively involved throughout the investment cycle and uses its relationships with local brokers, property managers, partners, owners, and peers to tactically execute a property’s business plan, with the focused objective of creating and realizing value for our clients.
Some key numbers relating to our asset management capabilities are summarized in the table below.
Our asset managers operate in more than 50 markets, covering the full real estate spectrum of core, value-added, and opportunistic, as well as a broad range of property types, including:
Acquisitions & Dispositions
Our dedicated 15-person acquisition/disposition team is organized by geographic region, with a managing director leading each region. This regional geographic focus allows our acquisition/disposition managers to develop a better understanding of key players in their particular market, as well as the pros and cons of property locations. It also allows us to cover a wide range of markets, giving us in-depth knowledge of over 50 markets nationwide.
Each acquisition/disposition manager evaluates transactions for all four property types: retail, industrial, office, and multi-family. They are client-neutral, with responsibility for all property sales in their region. We believe this allows our investment professionals to be more attuned to their respective market from a buyer’s and a seller’s perspective.
Our acquisitions services include transaction sourcing, underwriting, due diligence, contract negotiations, and closing. Our acquisition process is highly standardized and is primarily responsible for the origination, negotiation, structuring, and closing of acquisitions. Our standardized process allows smooth and efficient execution to create a high volume of quality investments for our clients. As a result, since 2003, our private equity investment production (acquisitions, dispositions, and development) has totaled approximately $50.7 billion.
We bring a dedicated focus to the disposition needs of our clients. Acting on the hold/sell analysis developed in the annual business plan process, our disposition managers oversee every aspect of the disposition process, including:
- Developing a marketing strategy to optimize our client’s return on the sale
- Leveraging our deep network to select the group or individual best qualified to execute the strategy
- Managing the due diligence process in our client’s best interest
- Overseeing the closing of the transaction.
Acquisitions sourcing: key channels
Since 2001, the majority of acquisitions we’ve made for clients have been sourced and procured through three main channels:
- Direct from the seller or in limited competition and not fully bid in the larger market
- Multiple transactions with the same seller
- Existing lending relationship with the seller
In many cases, these channels have allowed us to procure an acquisition even if we have not submitted the highest bid.
We have been actively involved in the development of more than $11.1 billion in commercial real estate projects since 2003. Investments in land throughout the major metropolitan markets in the United States are developed into suburban office, flex, service center, multi-family, and industrial buildings.
Our primary mandate is to meet the investment objectives of our clients. We focus on markets with favorable supply and demand characteristics, and will invest only when the projected returns compensate our clients for the development risk. In making all of our investment decisions, we apply a relative value framework with the goal of delivering long-term performance for our clients.
Property development parameters
Disciplined investment process