Average annual returns up to 20% (NCREIF Property Index) with lower volatility compared to direct property ownership or public equities.
All loans target LTVs below 75%, meaning loan amounts are always less than the appraised value, built-in cushion in any downturn.
Real estate serves as a natural inflation hedge with floating-rate debt adjusting to maintain attractive income returns.
CRE Private Debt delivers a Sharpe Ratio of 1.02 vs REITs at 0.51 and Global Equities at 0.36 — better risk-adjusted returns, period.
A senior mortgage position sits at the lowest risk tier of the capital stack, providing greater downside mitigation than equity investments.
Construction costs ~$300/sq ft vs retail selling price of $1,000/sq ft — a 233% return on build cost, creating exceptional margin safety.