Why is It Important to Geographically Diversify REITs? Pangea Properties CEO Explains Successful Portfolio Diversification.
Chicago, IL, July 31, 2013 --(PR.com)-- Diversification is an important component of any portfolio. For Pangea Properties, a private real estate investment trust (REIT), geographic diversification is a strategic and necessary element of their business model. Creating a portfolio that provides geographic diversification not only helps mitigate risk by allocating investments among various locations but can also enhance overall returns.
“We currently have properties in Chicago, Baltimore and Indianapolis, with plans to eventually expand into additional markets,” says Pangea Properties CEO Al Goldstein. “With the initial success we had breaking into the Chicago real estate market, the easiest trap we could have fallen into was to rest on our laurels. Instead, we looked for opportunities to expand into new markets, helping to substantiate our business model.”
But diversifying geographically extends beyond simply selecting different areas in which to invest. With the volatile nature of real estate, preparation is key to the success of any investment. “Before entering into any market, we collect as much background information as possible and fully educate ourselves on an area. Geographic diversification alone is not a sufficient reason for a REIT to enter into a new market. You need to determine whether the financial strength, infrastructure, zoning laws and management skills are all aligned before taking the plunge,” says Goldstein.
“Having truly geographically diverse REIT placements helps mitigate risk and enhance returns,” continues Goldstein. “The success of our model lies greatly on the fact that our expansion strategy is extremely refined. We dedicate a significant amount of time researching a market’s potential as well as the positive impact we can bring to it. Not only are we looking for places where we are able to grow, but where we can help improve the overall community.”
About Pangea Properties:
Pangea Properties is a private real estate investment trust (REIT) targeting the distressed residential multi-family real estate market. Pangea was founded in 2008 by Al Goldstein and Steve Joung with one mission: to bring service, value and care to its residents. The entrepreneurs saw an opportunity in the Chicago market to create a real estate firm that serves as both the property owner and the building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has over $250 million into 8,000+ apartment units throughout Chicago, Indianapolis and Baltimore, with the goal of continuing to expand within current markets as well as into new markets. Pangea has been highlighted by several media outlets including WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. Pangea’s founder Al Goldstein has been named one of Crain’s 2013 40 under 40 and is a recipient of the Ernst & Young Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com, www.Facebook.com/PangeaRE, www.linkedin.com/company/pangea-properties or on Twitter @PangeaRE.
“We currently have properties in Chicago, Baltimore and Indianapolis, with plans to eventually expand into additional markets,” says Pangea Properties CEO Al Goldstein. “With the initial success we had breaking into the Chicago real estate market, the easiest trap we could have fallen into was to rest on our laurels. Instead, we looked for opportunities to expand into new markets, helping to substantiate our business model.”
But diversifying geographically extends beyond simply selecting different areas in which to invest. With the volatile nature of real estate, preparation is key to the success of any investment. “Before entering into any market, we collect as much background information as possible and fully educate ourselves on an area. Geographic diversification alone is not a sufficient reason for a REIT to enter into a new market. You need to determine whether the financial strength, infrastructure, zoning laws and management skills are all aligned before taking the plunge,” says Goldstein.
“Having truly geographically diverse REIT placements helps mitigate risk and enhance returns,” continues Goldstein. “The success of our model lies greatly on the fact that our expansion strategy is extremely refined. We dedicate a significant amount of time researching a market’s potential as well as the positive impact we can bring to it. Not only are we looking for places where we are able to grow, but where we can help improve the overall community.”
About Pangea Properties:
Pangea Properties is a private real estate investment trust (REIT) targeting the distressed residential multi-family real estate market. Pangea was founded in 2008 by Al Goldstein and Steve Joung with one mission: to bring service, value and care to its residents. The entrepreneurs saw an opportunity in the Chicago market to create a real estate firm that serves as both the property owner and the building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has over $250 million into 8,000+ apartment units throughout Chicago, Indianapolis and Baltimore, with the goal of continuing to expand within current markets as well as into new markets. Pangea has been highlighted by several media outlets including WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. Pangea’s founder Al Goldstein has been named one of Crain’s 2013 40 under 40 and is a recipient of the Ernst & Young Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com, www.Facebook.com/PangeaRE, www.linkedin.com/company/pangea-properties or on Twitter @PangeaRE.
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Empower Public Relations
Natalie Cammarata
312-854-8818
www.empowerpr.com
Natalie Cammarata
312-854-8818
www.empowerpr.com
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