Drake Real Estate Partners

We would like to extend our sincere thanks to Professor Christina Wing for inviting Nicolas Ibanez - and the story and journey of Drake Real Estate Partners - back into her classroom at Harvard Business School. It is a privilege for us to connect with students and share insights on how entrepreneurial spirit and strategic vision drive success within private equity. At Drake, we are eager to continue inspiring and supporting the next generation of leaders in real estate, encouraging them to think boldly and create meaningful impact beyond traditional paths.

Investors are turning to new property types as they seek diversification amidst traditional real estate's challenging investment landscape. Here’s what we’re observing: 𝟭.𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗦𝘂𝗿𝗽𝗹𝘂𝘀: Core sectors have been historically overflown with institutional capital, driving up prices and making favorable buy opportunities harder to find 𝟮. 𝗛𝗶𝘀𝘁𝗼𝗿𝗶𝗰𝗮𝗹 𝗩𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆: In recent decades, traditional sectors have not been immune to sudden plunges, such as those that struck the industrial and residential sectors during the global financial crisis (GFC) years of 2008–2009 𝟯. 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗡𝗶𝗰𝗵𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀: Core-plus and Value-Add funds are diversifying into niche strategies for return enhancement and risk management At Drake Real Estate Partners, we have built a strong track record investing in niche sectors for over a decade. Our flexible mandate coupled with our thematic investing approach have enabled us to identify and execute on subsectors of our highest conviction themes. For more, check out this IREI article or contact 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧@𝙙𝙧𝙖𝙠𝙚𝙧𝙚𝙥.𝙘𝙤𝙢 for more information on Drake’s investment strategy. https://lnkd.in/gPB7MTP2

Exurban areas — and the shift toward denser developments in these regions — increasingly bring highly-attractive real estate investing potential. Trends we continue to watch:  1. Hybrid work drives the ability (and desire) to live farther from city centers 2. Millennials see exurbs as cost-effective alternatives to urban cores 3. Emerging technologies like autonomous vehicles will extend viable commuting distances, further expanding growth In short, areas with job hubs, natural amenities, and easy AV adoption for long-term value creation are interesting from an investment standpoint. For more, check out this Thesis Driven article or contact investor@drakerep.com to discuss our approach. https://lnkd.in/eEXxdP_a 

Last Thursday we co-hosted The Annual US Real Estate Meeting East, where our Co-Founder and CIO, David Cotterman, delivered an insightful presentation on Industrial Outdoor Storage. David highlighted the opportunities in this space and the sector’s strong risk adjusted return profile due to high unlevered returns and low-execution risk business plans. Industrial Outdoor Storage has been one of Drake’s high conviction playbooks for over 5 years, within its thematic investment approach.   We would like to extend a big thank you to Carmo Companies for organizing a strong event and for considering us. See you next year! Roy Carmo Salsinha John Sweeney, CFA Raj Sheth

Americans have long shared a singular obsession: having a better life than their parents. This insightful article by The Wall Street Journal delves into this issue, highlighting that when children grow up in a neighborhood where more adults have jobs, those children are better off economically as adults themselves. For an in-depth exploration of this topic, please see the article linked below: https://lnkd.in/eFWnUHyD 

The affordability crisis in the U.S. housing market has led politicians to take desperate measures in an effort to address the issue. A notable example is the current administration's controversial proposal for a nationwide rental rate cap, which could have significant repercussions on the real estate market, potentially resulting in supply shortages and lower quality standards. This insightful article by Judge Glock and @CityJournal delves into the serious consequences that this proposal could have on the U.S. housing market. https://lnkd.in/ejEqiRYk  

Drake BUILDS is the Firm’s holistic approach to sustainability. In addition to our partnership with 1% for the Planet through Drake BUILDS, we are proud of our ongoing commitment to reduce the impact of our operations on the environment. Continuing a 7-year partnership with the Bonneville Environmental Foundation (BEF), Drake is pleased to share its 2024 commitment: • Renewable Energy Certificates (“RECs”): Drake purchased RECs to match 100% of its office electricity usage for calendar year 2024. • Offsets: Drake offset 100% of its unavoidable emissions associated with travel and shipping emissions as well as office waste for calendar year 2024. • Water Restoration Certificates© (WRCs): Drake balanced 100% of its office water usage for calendar year 2024 by purchasing BEF Water Restoration Certificates©. Learn more about BEF here: BEF | Sustainability Products and Services (b-e-f.org)

Why it pays to invest small. This insightful article by Institutional Real Estate, Inc. analyzes how smaller assets have proven an edge when it comes to liquidity in a market that has become increasingly frustrated with the dearth of transaction volume. At Drake Real Estate Partners, we target “under the radar” value-add real estate investment opportunities in secondary markets with strong fundamentals across de U.S. https://lnkd.in/eGTDzZyP 

Drake pursues a thematic investment approach, executing repeatable playbooks to take advantage of the evolving opportunity set, which we believe is particularly compelling today. We invite you to learn more about Drake's most active playbooks at the link below: https://lnkd.in/eN92WgPg

Thank you to the 2024 GW Real Estate Trek attendees for joining Drake Real Estate Partners at our office last week. Co-Founder David Cotterman and Vice President (and GW alum) Maxwell Hengeveld led an insightful conversation around the founding of our firm, challenges of growing an investment management business, and our current investment strategies. We look forward to the opportunity to host again! Rob Valero The George Washington University School of Business https://lnkd.in/eyE8QQdn