About Redwood: Why Invest in Real Estate?
Real estate provides investment diversification to overall investment portfolios of stocks and bonds, potentially raising returns and / or lowering investors’ risk due to this asset class’ low correlation with publicly traded securities. Real estate assets can provide reliable annual income and longer-term appreciation to an investment portfolio. Most organized markets of stocks and bonds are very efficient and provide limited opportunity for investors to purchase investments below intrinsic value whereas real estate is a highly inefficient market which can provide investors with opportunities to purchase assets at attractive prices and return levels. Although real estate does not benefit from the liquidity of publicly traded securities, investors’ risk-adjusted returns often match or exceed the returns associated with publicly traded securities. Real estate investments can also provide investors with meaningful tax deductions, further supplementing returns.
During all parts of an economic cycle commercial real estate market remains an inefficient market and thus offers promising investment opportunities to sophisticated owners and operators. At Redwood, we view market inefficiencies and cycles as long-term opportunities. Market inefficiencies can result from fluctuating capital market conditions for both debt and equity, property mis-management, misunderstood and poorly marketed properties, and improper leasing strategies. Given changing market conditions and our broad network of professional relationships, Redwood anticipates a strong future pipeline of value-added acquisition and development investment opportunities.