The W5 Group is now encouraging further family offices and institutional investors in Europe to participate in real estate club deals in the US. The group began operations at its new Frankfurt office a few weeks ago.
Targeting family offices and ultra-high net worth private and institutional investors, the W5 Group is a residential real estate specialist that invests in the US and Europe. Developed out of the Ralph Winter Family Office, the group was founded in 2009. The founder of the W5 Group has built up a portfolio of 40,000 student housing units and 100,000 multifamily units in Europe, generating over 30 billion euros in investment transaction volume.
The W5 Group has US offices in Miami and New York and has invested a total of USD 5 billion in 9,000 residential units since 2018, including indirect public securities investments. 1.2 billion dollars of this has been planned and developed in the Innovative Living segment. The company manages a total of 2,050 units in its own portfolio.
The co-investors of the W5 Group invest in various types of residential real estate in the US through club deals. The Winter Family Office is itself a co-investor and holds a significant stake. The focus is on innovative living concepts, such as micro-living, shared living, single-family-rentals and student housing.
“We have launched in Germany in response to the growing demand for investments in the US. Our defining characteristics are that we offer local management expertise and include the family’s own shares in every investment. This gives us a unique position in the market. We decided that it was now time for us to take the next step and launch the W5 Group in my home country, too,” explains Celine Winter.
In the US, the W5 Group’s Innovative Living concept is primarily aimed at responding to the particular needs of millennials and Generation Z. The main elements of the concept include flexibility, the mobile 21st century lifestyle and offering plenty of (in some cases) unusual amenities such as gym areas, pools, golf simulators, club rooms, office areas and study rooms. The aim is to create completely new and affordable living spaces which include hotel-like amenities. The idea of community is also central. Interaction among residents is encouraged through the creation of a vibrant community. The new Innovative Living concept was developed by Celine Winter. Representing the second generation, she has played an active role in the Winter Family Office since 2020.
The W5 Group has registered strong demand for US real estate. Investors are currently favoring club deals, particularly in the residential sector, both for equity and for individual mezzanine investments. Currency risks are only of secondary importance for them at present, with their main focus lying on the potential returns and the comparatively uncomplicated regulatory framework of the US. The negative sentiment in Europe is seen as a further factor behind the current interest in US investments. Co-investment of the sponsor is crucial for family offices, as is the presence of a professional and experienced team on the ground in the US.
“We believe that it is a very good time to enter the US real estate market. Indeed, right now is the best time to invest in US real estate since 2011. Interest rates are likely to be reduced in the not-too-distant future and we are seeing clear signs of a market revival,” explains Raphael Sidelsky, Head of Real Estate at the W5 Group.
