5 Family Offices Investing in Real Estate

In utilizing the FINTRX Family Office and Investment Advisor Data Platform, which provides intel into thousands of direct deal transactions made by over 3,600+ family offices worldwide, we explore five family offices investing in real estate...

1. Hackman Capital Partners (Michael Hackman Family Office)

Established in 1986, Hackman Capital Partners (Michael Hackman Family Office) is a Culver City, CA-based single-family office with an additional location in Columbus, OH. The firm invests and manages the wealth of its founder Michael Hackman and his family. Hackman's wealth stems from a lengthy career in the real estate market. During this time Hackman acquired, developed, managed, and disposed of properties representing $6B+ in capitalization. Hackman spent time at Majestic Realty and CB Richard Ellis where he focused on industrial properties.

Hackman Capital prides itself on being one of the early pioneers of converting industrial properties into creative office and media spaces across the Southern California area. The group is one of the largest owners and operators of independent film and television studios as well as media facilities. Hackman Capital is also focused on philanthropy and giving back to communities, giving millions to non-profits such as Casa, Catalyst Kitchens, Reading Partners, Refugepoint, and Seva Foundation.

Today, Hackman Capital invests primarily in real estate properties but will also consider alternative asset classes such as private equity via direct investments. The firm takes an agnostic approach to its deal sourcing but has historically focused on properties across North America, the United Kingdom, and Ireland.

Hackman Capital Partners, with its affiliate, The MBS Group, has amassed a portfolio of sound stages, studio facilities, and other media use properties. The firms also target industrial properties in urban infill areas. Additionally, the groups provide services and resources to content producers including product inventory, studio management and oversight, marketing, staffing, and training. Notable portfolio holdings include Sony Pictures Animation Campus, Television City, Silvercup Studios, Radford Studio Center, and MBS Media Campus, among many others.

2. EJT Holdings

Established in 1986, EJT Holdings is a Miami Beach, FL-based single-family office managing the wealth of Eliot Tubis and his family. Tubis is an entrepreneur and private equity investor. Over the course of his career, Tubis has founded multiple companies across many industries including consumer finance, customer relationship management, real estate, and hedge fund investing. In addition to his professional career, Tubis has been a director of The San Diego Chamber Orchestra, Young Presidents Organization, and Clout Financial. In 2008, he authored and published the book The Entrepreneurs' Voyage which outlines the guidelines for success used by many of the world's greatest entrepreneurs.

EJT Holdings' primary aim is to build a diversified portfolio of investments that preserves capital while simultaneously building long-term value. The firm invests across multiple asset classes including private equity, real estate, and public securities. EJT Holdings takes an agnostic industry approach to its deal sourcing. When sourcing private equity opportunities, prime candidates typically have a simple business model, competitive advantages, high-profit margins, ability to scale, and experienced management.

EJT actively acquires real estate holdings with the attributes of 5-20+ years of deal term, 6.5% cap rates, high-visibility locations, builds after the year 2000, and quality demographics. The firm's real estate portfolio has historically partnered with notable companies like Dollar General, United States Post Office, United Rentals, Starbucks, and more. The firm diversifies its portfolio by allocating capital to publicly held securities such as stock, options, and warrants with an emphasis on companies with capital-light business models. 

In April 2019, EJT Holdings acquired Villa Soleil, a vacation rental home in the gated community of Destiny East. Additional acquired properties include Herc Rentals in Corpus Christi (Texas), among others. 

3. Neman Ventures (Shane Neman Family Office)

Founded in 1999, Neman Ventures (Shane Neman Family Office) is a Sunny Isles, FL-based single-family office managing the wealth of Shane Neman and his family. Neman is a career entrepreneur, venture capitalist, and founder of EZ Texting, a SaaS company that delivers a fast and efficient way to connect, and JoonBug, a technology platform designed for events and media across NYC, LA, Miami, Las Vegas, and Atlantic City. Shane has an extensive professional career spanning technology, telecommunications, real estate, and hospitality. Following these two successful ventures, Neman founded Neman Ventures to expand his real estate and private equity portfolio.

Today, Neman Ventures invests primarily in the real estate, private equity, and venture capital asset classes. The firm remains geographically agnostic to its deal sourcing but has historically focused its efforts in North America. Regarding Neman Venture's private wealth investing, the firm takes an active approach to partner with promising technology companies.

Neman's team, spearheaded by Shane Neman, uses their extensive industry experience to provide managerial, operational, and capital support and service. Prime targets include early-stage companies that have a clear and sustainable business that has a clear roadmap to profitability and scalability. Regarding Neman's real estate holdings, the firm acquires a variety of holdings across the United States such as commercial shopping centers, distressed properties, luxury vacation homes, large residential buildings, and hotels. Neman Ventures sources real estate opportunities that have the possibility of adding significant value. For instance, in February 2020, Neman Ventures acquired Residence Inn by Marriott Boca Raton.

4. Propst Companies (Propst Family Office)

Established in 2008, Propst Companies (Propst Family Office) is a Huntsville, AL-based single-family office managing the wealth of the Propst Family. The family's wealth stems from William Propst Sr., a career entrepreneur who founded Propst Drugs of Huntsville and Kmart Pharmacies. Kmart then purchased the pharmacies in 1970 from Propst Sr. While at Kmart he started Qualitest Pharmaceuticals, Kmart's primary supplier for generic drugs. Shortly after, Propst purchased Medico Pharma, which later became Vintage Pharmaceuticals, and eventually grew the company to be one of the largest generic drug manufacturing companies in the United States.

Most recently, Propst founded Propst Companies to diversify into real estate. Late in his career, he focused much of his attention on philanthropic activities such as making substantial donations to Samford University, Hudson Alpha Institute, Randolph School, renovations of Propst Arena, and the construction of the Eloise McDonald Propst Welcome Center at Huntsville Botanical Gardens, among others.

Today, Propst Companies is a diversified family office investing primarily via direct investments into real estate and private equity. The firm takes a geographic agnostic approach to its deal sourcing but has historically favored North America. Propst Companies seeks alpha and aims to deliver returns by leveraging the group's extensive industry knowledge. The firm operates an in-house real estate services team and a real estate development company. To supplement cash flow and grow asset value, the firm also enters joint ventures with private companies.

Industries of interest include travel, entertainment, waste treatment, and manufacturing, among others. Regarding the firm's real estate investing, Propst Companies targets retail, multi-family and office properties while focusing on delivering value in emerging and high-growth markets. Acting as a full-service commercial real estate partner, the firm leases, manages, and services leading retail and office spaces. In May 2019, Propst Companies acquired Conrad Hotels & Resorts, an American multinational brand of high-end luxury hotels and resorts owned and operated by Hilton Worldwide.

5. Seaview Capital (Joseph Fryzer Family Office)

Established in 1994, Seaview Capital is a Beverly Hills, CA0-based single-family office managing the wealth of Joseph Fryzer and his family. Fryzer is a career entrepreneur having successfully founded Public Communications Services Inc., a telecommunication company based in New Orleans, Louisiana. Under Fryzer, the company grew to exceed annual sales of $100M before selling in November 2010 to private equity firm Veritas Capital for approximately $7B. Additionally, Fryzer is an active investor in the real estate industry, identifying opportunistic deals focused on the multi-family space.

Seaview Capital is the umbrella company for all family office activities and looks to add value to its portfolio by leveraging its industry experience to create sustainable profitability. The firm invests primarily in real estate opportunities, taking an active approach to deal sourcing with a focus on single- and multi-family properties across Southern California, Utah, Nevada, Massachusetts, and Arizona. Seaview's management has experience in telecommunications, energy, resort development, and commercial real estate.

Prime multi-family real estate properties typically are garden-style, mid-rise, or multi-family development land with 10-250 units as individual assets or portfolios. The most optimal portfolio holdings for Seaview are those built in 1950 or newer, funded with all cash to the seller, and can include situations of restore to core, value-add, opportunistic, and core-plus.

As for single-family properties, Seaview Capital looks for single-family homes or development land funded by internal equity. Historical check sizes differ between the two types with multi-family landing between $2M-$75M and single-family between $1M-$25M. The group does not take any outside investment and currently self-funds all projects allowing them to have a generational viewpoint for long-term investment holding periods.

Notable portfolio holdings include Wilshire Corridor Condominium, Mega Mansion in Beverly Hills, and The Premiere at Eastmark, among others. 

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