-
April 15, 2025
Navigating 2025 Market Volatility: Why Private Real Estate May Offer Stability for Investors
The public markets are experiencing high volatility—driven by sweeping tariffs, geopolitical uncertainty, and investor anxiety around a potential economic slowdown. In this kind of environment, many high-net-worth investors are re-evaluating their asset allocation strategies. One increasingly popular question: Is it time to move beyond the public markets? While publicly traded REITs (Real Estate Investment Trusts) offer exposure to real estate, they behave more like stocks than the underlying real estate itself. This is because public REITs trade on exchanges and are subject to the same sentiment-driven swings as the broader equity markets. This disconnect highlights the key difference between public REITs and private real estate investments: private real estate is less correlated to public markets. At MLG Capital, we track and compare the performance of public equities, REITs, and private real estate using trusted benchmarks like the S&P 500, the IYR ETF (for public REITs), and the NCREIF Property Index (for institutional private real estate). Historically, and continuing into this volatile 2025 environment, private real estate has shown considerably lower volatility and less correlation with the ups and downs of the stock market. Overexposure to highly correlated, and currently volatile assets, may result in increased risk when compared with a…
-
January 14, 2025
Meet Our Newest Principals
As we begin a new chapter at MLG Capital, we are proud to announce an expanded leadership structure under the continued guidance of CEO Tim Wallen. This change reflects our commitment to fostering long-term growth and ensuring a sustainable future for our company. Effective immediately, we are excited to welcome five outstanding team members as Principals within our organization. Billy Fox: President and Principal Billy Fox, a dedicated member of MLG for the past decade, has been named President and Principal, and will remain a key member of the Investment Committee. In this role, Billy will lead efforts to enhance team building, refine investment strategies, and improve the overall customer experience. Known for his intelligence, empathy, and hard work, Billy exemplifies the qualities of a true leader. His vision and dedication will strengthen MLG’s culture and continue the tradition of providing exceptional service to our clients and investors. Dan Price: Chief Investment Officer and Principal With 16 years in the commercial real estate industry, including four years at MLG, Dan Price has been named Chief Investment Officer and Principal. As CIO, Dan will oversee the development of diversified and attractive real estate funds, bringing his deep industry relationships and market…
-
January 13, 2025
2024 Year in Review
As we close the chapter on 2024, I want to take a moment to reflect on a year defined by purposeful growth, resilience, and the pursuit of excellence. Guided by over 37 years of experience, our team has remained steadfast in our mission: to provide access to a variety of investment opportunities that deliver tax-efficient cash flow and long-term appreciation. Thank you to our investors, deal partners and industry partners for your trust and partnership. To download our 2024 Year-end newsletter, click here or on the image below, and join us in celebrating the collective accomplishments that would not have been possible without your support.
-
October 10, 2024
What is the J-Curve?
The term “J-curve” is a concept often used to describe the typical investment performance trajectory of private equity and real estate funds over time. It represents the pattern of cash flows and returns that investors can usually expect during the lifecycle of these types of funds. The J-curve’s name is derived from the shape of the curve, which resembles the letter “J” when plotted on a graph, with time on the horizontal axis and returns on the vertical axis. When applied to real estate funds, the typical J-curve illustrates an initial dip in performance, a gradual increase, and eventual positive returns (as demonstrated on the graph below). Understanding the J-curve is important for investors, fund managers, and related parties as it provides insights into the expected timing of returns and the associated risks of investing in private real estate. The Stages of the J-Curve Stage 1: Investment Period (Capital Deployed into Markets) Stage 2: Value Creation (Operational, Financial, and Managerial Improvements) Stage 3: Harvest Period (Exit Investments to Realize Gains) Understanding the Stages of the J-Curve Stage 1: Investment Period This initial downturn is primarily due to the upfront costs associated with establishing the fund and acquiring real estate, such…
-
September 23, 2024
2024 Annual Fall Event
We recently had the privilege of hosting investors, partners, and team members at our headquarters for our Annual Fall Event! With nearly 350 registrants, the event was a tremendous success, made even more memorable by the enthusiastic participation of everyone who attended. From start to finish, the evening was filled with excitement, inspiration, and meaningful connections. One of the highlights of the evening was the panel discussion featuring Principal & CEO, Tim Wallen, along with SVPs Billy Fox and Daniel Price, and moderated by VP Nathan Clayberg. The panelists shared their deep insights into what sets MLG apart, our perspective on the current market, and our proven investment strategy. Their expertise and perspectives highlighted the essence of MLG and the strategic vision guiding our approach. During the event, there were countless opportunities for networking, great conversation, and exploring new partnerships. The room was energetic as individuals and industry leaders exchanged ideas, shared experiences, and celebrated each other’s successes. As we reflect on this remarkable evening, we are excited about the opportunities ahead. We look forward to continuing our collaboration, fostering innovation, and celebrating ongoing successes! View Photos From the Event Here (Click image for photos of the evening)
-
September 17, 2024
2024 MLG Market View: Navigating the Private Real Estate Investment Market
2024 Insights The real estate market is constantly evolving, influenced by macroeconomic pressures, shifting work habits, and changing investor sentiment. Each Fall we share our insights on the multifamily, industrial, retail, and office sectors, along with the current trends in capital markets. Above you’ll find a quick video of Tim Wallen, Principal & CEO, Billy Fox, Senior Vice President and Dan Price, Senior Vice President, sharing their core takeaways. If you’d like, you can download a full explanation of our Market View by asset class and full deck presentation below in this post. Here’s a breakdown of the key takeaways from the MLG Capital 2024 Market View: Multifamily Sector: Long term stability amid short term supply wave The multifamily sector continues to demonstrate resilience, even as broader economic challenges persist. Our analysis underscores the enduring appeal of multifamily investments: Sustained Demand: Demand for multifamily housing remains strong. Continued population and household formation growth combined with increasing unaffordability of single-family homes, driven by higher mortgage rates and home prices, is pushing more people into renting. Further, many renters are renting for longer as marriage and having children are pushed out to later ages, bolstering the multifamily market. Short–Term Supply…
-
September 4, 2024
Is Now the Right Time to Invest in Private Real Estate? Insights from Tim Wallen, Principal & CEO
Why Timing the Market is Hard: Insights from a 35-Year Real Estate Veteran The real estate market has always been a dynamic landscape, filled with challenges and opportunities for both investors and professionals. With over 35 years of experience in the real estate business, I’ve seen numerous cycles and many opportunities arise. One common theme I’ve encountered is the desire among many investors to time the market perfectly. However, timing the market is incredibly difficult, and this approach can often lead to missed opportunities. Market Conditions & Investment Opportunities The real estate market is currently experiencing a shift that has created a favorable environment for buyers: Institutional fund inflows are down approximately 80% from previous years, resulting in reduced competition. This reduced competition allows us to acquire assets at historically favorable cap rates of 5.5% to 6% and significantly below replacement cost. Consistent investment over a long period of time tends to produce the best results. Trying to time the market precisely, aiming to buy at the absolute low, often means missing out on great opportunities. Today’s market presents an interesting scenario where the assets we purchase now are likely to be sold in the future when interest rates are…
Blog
Investing in private real estate across all aspects of the business has put our team in the unique position to allow us to share our industry knowledge. Want to learn more about MLG or real estate? Take a look below.
Subscribe to Our Blog
Scroll Down
Featured Articles
Subscribe to MLG Updates
Join our mailing list to get the latest news and blog updates from MLG!
