Ahead of the marcus evans Private Wealth Management Summit 2021, Steve Fifield discusses which sectors of the real estate market investors can gain the most from

1. The Real Estate Investment
Opportunities Today
Interview with: Steve Fifield,
Chairman & CEO, FRC Realty Inc.
“After every recession, the value of real
estate tends to go up, usually above
previous highs. Although many people
are moving to the suburbs, either due to
COVID or to accommodate their growing
families, we do not expect a long-term
impact on the demand for housing in
major cities,” said Steve Fifield, Chair-
man & CEO, FRC Realty Inc.
FRC Realty Inc. is a real estate devel-
oper at the marcus evans Private
Wealth Management Summit 2021.
What real estate investment oppor-
tunities would you point private
wealth managers to? Why?
The safest bets for those looking for
lower risk will be existing distribution
centers in major hubs, such as LA,
Dallas, Chicago and Atlanta. For
modestly leveraged deals, expect eight
to nine percent compounded returns
(including profit on sale) as well as
existing neighborhood and suburban
apartments near major job centers with
good job and population growth, like
Dallas, Miami, Phoenix, Denver, DC,
Minneapolis, Nashville and Salt Lake
City.
For higher returns, investing in dis-
tressed turnaround deals in these same
cities, or in new construction projects
for 2021-2022 to deliver in 2023-2024
when the recovery has begun will yield
outsized returns in the high teens or 20
percent compounded. Other asset
classes like hotels, retail and net lease
restaurants still have much uncertainty.
What challenges are real estate
investors facing today in this space?
What is the way around them?
For acquisitions of existing properties,
lenders (like Fannie Mae, Freddie Mac,
the banks and insurance companies) are
sometimes requiring up to a year of
prepaid interest to be escrowed while
the pandemic pans out. For new
construction in 2021 and beyond, the
banks are being more selective and
limiting their activity to the most
experienced players.
How would your properties add
value to their portfolio?
Every portfolio needs some balance with
risk and return. We play in the new
construction and turnaround space
which requires a more hands-on
approach.
No one should put all their money into
these higher return areas, but some
minority of the portfolio. If one allocates
say 30 percent of their portfolio to real
estate, two-thirds of it should be in
stable existing assets with the balance
in higher yield new construction or
turnaround deals. If the existing assets
yield nine percent and the turnaround
18 percent, then the real estate portfo-
lio overall adds a 12 percent return
weighed to the portfolio.
We focus on urban infill and suburban
communities with robust “downtowns”.
The demand for multi-family housing is
still more than the supply in most major
urban areas.
What demographic shifts or indus-
try trends should investors prepare
for?
Our first hand knowledge with apart-
ments is that “some” of our renters are
shifting from downtown high rises to
neighborhoods and suburbs. But the
shift we have noted is in the ten percent
range, not 50 percent. With more jobs
in cities, will generation Z and millenni-
als abandon the city? We do not think
so. But some of the older millennials will
move to the suburbs with young
children. This will have a positive effect
on suburban and city neighborhood
demand, while lowering demand for new
high rise constructions in the down-
towns. Likewise, distribution centers will
continue to grow where the population
is densest.
What risks should investors be
aware and plan for? How?
The Federal Reserve has “primed the
pump” with more liquidity in the
system. With the deep job losses we are
slowly recovering from, investors should
be cautious about acquiring real estate
with a lot of debt as it may take through
2022 before markets fully recover. But I
am very optimistic about 2023 and
beyond.
Besides distribution and multi-family,
what other property types do we expect
to fare well? Medical office, data
centers, and biosciences offices/labs
should do well. Not for the faint of heart
would be converting failed hotels into
other uses, like micro units or workforce
housing. With older millennials and
empty nesters considering suburban
options, a rising new area are 150-200
rental single-family home subdivisions
in Phoenix, Dallas, Denver and Florida.
Besides hotels, the verdict’s out on
retail, senior housing, offices and
nursing homes. With senior housing, the
peak population demand is expected
around 2029. In the meantime, it
appears that supply exceeds demand.
Every portfolio
needs some
balance with
risk and return

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About the Private Wealth Management Summit 2021
The Private Wealth Management Summit is the premium forum bringing leaders
from America’s leading single and multi-family offices and service providers
together. The Summit offers service providers and executives from single and multi-
family offices an intimate environment for a focused discussion of key new drivers
shaping the future of the industry.
www.s1.privatewealthsummit.com
About FRC Realty Inc.
Fifield Companies is a boutique real estate developer with deep expertise in land acquisition, finance, construction management,
architecture, design, marketing, operations, and management.
In our more than four decades in business, we have seen and adapted to almost every challenge in large-scale real estate
development. We have executed more than $7 billion in developments with 21 million square feet of residential and office projects,
comprising over 13,000 multifamily units and 8.7 million square feet of commercial projects. Our collaborative team allows us to be
agile and reactive – employing creative solutions to overcome obstacles. The experience we’ve acquired has helped refine our
process to plan and build developments that not only make sense economically, but help improve markets and leave minimal
environmental impact.
www.fifieldco.com
About marcus evans Summits
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