Origin Investments Review 2023: Commercial Real Estate

Investing in commercial real estate can be a lucrative venture for those looking to diversify their investment portfolio. Origin Investments, a reputable investment management firm, has been providing investment opportunities to its clients in the commercial real estate space since 2007. In this review, we will take an in-depth look at Origin Investments and its various offerings, strategies, and track record to help you make an informed decision.

Overview of Origin Investments

Origin Investments is an investment management firm specializing in commercial real estate. Founded in 2007, the company has since grown to manage over $1 billion in assets, with a focus on the multifamily sector. Origin Investments has a diverse team of experienced professionals who are dedicated to delivering value to their clients through a disciplined and research-driven investment strategy.

Company Background and History

The idea for Origin Investments was borne out of a shared passion for real estate investing that its founders, David Scherer and Michael Episcope, had. Both had years of experience in the industry and noticed a gap in the market for a professional and transparent investment management firm. They founded Origin Investments with the aim of providing investors with access to institutional-quality commercial real estate investment opportunities.

David Scherer, co-founder and CEO of Origin Investments, has over 25 years of experience in real estate investment and development. Prior to founding Origin Investments, he was the CEO of a national real estate development firm that specialized in multifamily properties. Michael Episcope, co-founder and president of Origin Investments, has over 20 years of experience in real estate investment and management. He has held senior positions at several national real estate investment firms and has overseen the acquisition and management of over $1 billion in real estate assets.

Investment Strategy and Focus

Origin Investments’ investment strategy is centered around acquiring well-located, middle-market properties in the multifamily space. The company’s focus is on cash flow, with a goal of providing stable, long-term returns to its investors. Origin Investments does this through a combination of rigorous research, due diligence, and disciplined underwriting.

The company’s investment team focuses on identifying markets that are expected to see long-term growth potential, with a particular focus on areas with strong job growth, population growth, and affordability. This research-driven approach allows the company to be proactive in identifying investment opportunities that can deliver value to its clients.

Origin Investments’ multifamily properties are typically located in areas with high demand for rental housing, such as urban centers and college towns. The company’s properties are well-maintained and offer a range of amenities, including fitness centers, swimming pools, and community spaces.

Management Team and Experience

Origin Investments has a diverse and experienced management team, which includes professionals with backgrounds in real estate underwriting, acquisitions, asset management, and portfolio management. The company’s leadership team has a track record of success in the industry and has been recognized for its innovative approach to investment management.

In addition to David Scherer and Michael Episcope, the company’s management team includes Managing Director David Scherer Jr., who oversees the company’s asset management and property operations, and Managing Director Michael Episcope Jr., who leads the company’s investor relations and capital raising efforts. The team also includes a number of experienced professionals in areas such as acquisitions, underwriting, and portfolio management.

Investment Offerings

Origin Investments provides investors with access to a range of investment offerings, tailored to meet their specific needs and risk profiles. With the goal of providing investors with the best possible returns, Origin Investments has developed a range of investment options that cater to a variety of investment strategies.

Private Real Estate Funds

Origin Investments offers private real estate funds, which are investment vehicles designed to provide investors with exposure to a diversified portfolio of commercial real estate assets. These funds are managed by experienced professionals who have a deep understanding of the commercial real estate market and are able to identify and capitalize on opportunities that are not available to individual investors. The funds are typically open to accredited investors and have a minimum investment amount.

Investing in private real estate funds can provide investors with several benefits. Firstly, it allows them to access a diversified portfolio of commercial real estate assets, which can help to spread risk and reduce exposure to individual properties. Secondly, it provides investors with access to professional management, which can help to maximize returns and reduce risk. Finally, private real estate funds can provide investors with tax benefits, such as depreciation deductions and pass-through income.

Direct Investment Opportunities

Origin Investments also offers direct investment opportunities, which are individual investment opportunities in a specific property. These investments are typically available to both accredited and non-accredited investors and may have varying minimum investment amounts.

Direct investment opportunities can provide investors with several benefits. Firstly, they allow investors to have direct ownership of a specific property, which can provide them with more control over the investment. Secondly, they can provide investors with potentially higher returns, as they are not subject to the fees and expenses associated with investing in a fund. Finally, direct investment opportunities can provide investors with tax benefits, such as depreciation deductions and pass-through income.

Real Estate Investment Trusts (REITs)

REITs are publicly traded companies that own and operate income-generating real estate assets. Origin Investments offers access to REITs through its investment platform, allowing investors to participate in the commercial real estate market without the hassle of directly owning and managing properties.

Investing in REITs can provide investors with several benefits. Firstly, they provide investors with exposure to a diversified portfolio of commercial real estate assets, which can help to spread risk and reduce exposure to individual properties. Secondly, they provide investors with access to professional management, which can help to maximize returns and reduce risk. Finally, REITs can provide investors with potentially higher liquidity, as they are publicly traded and can be bought and sold on stock exchanges.

Performance and Track Record

Origin Investments has a strong track record of delivering attractive returns to its investors. The company’s investments have historically outperformed its benchmarks and delivered stable, long-term returns. With a focus on risk management and mitigation, Origin Investments has become a trusted name in the real estate investment industry.

Historical Returns and Comparisons

Origin Investments’ private real estate funds have historically delivered annualized returns of over 15%, outperforming industry benchmarks. This impressive track record is a testament to the company’s expertise in identifying high-quality investment opportunities and executing on them with precision. The company’s commitment to delivering strong returns to its investors has made it a leader in the real estate investment space.

When compared to other real estate investment firms, Origin Investments stands out for its consistent performance and focus on risk management. While other firms may experience volatility in their returns, Origin Investments has a proven track record of delivering stable, long-term results.

Notable Investment Successes

One of Origin Investments’ notable investment successes is the acquisition and subsequent sale of a multifamily property in Dallas. The property, which was acquired for $31 million in 2015, was sold for $56 million in 2021, delivering a return of over 80% to investors. This impressive return is a testament to the company’s ability to identify undervalued assets and unlock their full potential through strategic management and value-add initiatives.

Another notable success story for Origin Investments is the acquisition and redevelopment of a mixed-use property in Chicago. The property, which was acquired in 2017, underwent extensive renovations and repositioning efforts, resulting in a significant increase in rental income and property value. The property was eventually sold for a substantial profit, delivering strong returns to investors.

Risk Management and Mitigation

Origin Investments has a rigorous risk management process in place, which includes thorough due diligence and underwriting, ongoing property management, and proactive asset management. The company’s focus on risk management is evident in its investment strategy, which prioritizes properties that generate stable cash flows and have a strong potential for appreciation.

By investing in properties with strong fundamentals and a focus on minimizing downside risk, Origin Investments has been able to deliver consistent returns to its investors. The company’s commitment to risk management and mitigation has also helped it weather economic downturns and market volatility, further solidifying its position as a leader in the real estate investment industry.

Fees and Expenses

As with any investment, it’s important to understand the fees and expenses associated with investing with Origin Investments.

Management Fees and Incentives

Origin Investments typically charges a management fee of 1.25% of assets under management and a performance fee of about 10% for select funds on profits above a hurdle rate. The hurdle rate is typically set at 6%, meaning that Origin Investments only charges a performance fee if the investment returns exceed 6%.

Transaction and Operating Costs

Transaction and operating costs can vary depending on the investment vehicle and the specific investment opportunity. These costs typically include legal fees, due diligence costs, and ongoing property management fees.

Tax Implications for Investors

Investing in commercial real estate can have tax implications for investors. Origin Investments provides investors with detailed information regarding the tax implications of their investments and works with them to minimize their taxes.

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