Unlike Europe, the U.S. population has positive growth every year. The forecast is for 335 million people to live in the U.S. by 2020 (both from natural growth and immigration) and close to 400 million by 2050.
Even though the U.S. economy is growing, the middle class still hasn't fully recovered from the 2008 crisis and many people have had to forego the American dream of owning their own home, so they are renters by necessity. Additionally, two segments of the population (Millennials and Baby Boomers), each for their own reasons, have shown preferences to renting over owning real estate. This creates strong and sustainable demand for U.S. multifamily properties.
On tangent asset classes such as student housing and assisted living there is also increased demand.
The advancement of distribution and delivery technologies along with improved communications capabilities shifts the equilibrium and demand for distribution centers, data centers, office and retail that requires a fresh look at emerging opportunities in these asset classes.
Due to its stability and the realization that in today's global economy the U.S. market and U.S. real estate in particular, are possibly the only safe haven for investors globally, the U.S. market is a major draw to investors worldwide.
Employing its “Best in Class” multi-manager approach, RealAssets™ will invest in the above asset classes and will build a portfolio that as its backbone will mainly rely on cash flowing properties located in major and secondary U.S. metro areas. Particularly, RealAssets™ will look to invest in locations where the team has previous experience and is supported by robust market and employment fundamentals as well as the demographics range to match. These markets highly "fly below the radar" of other investors and therefore investment properties situated in these locations provide higher yields very often, assuming certain demographic criteria is met.