Family Offices Target CRE Opportunities

Family offices boost CRE investments as wealth shifts to a new generation and market conditions create prime entry points.

December 5, 2025

Nina Dale

A generational wealth transfer and rise in new billionaires is fueling increased interest in direct real estate investment by family offices.
Family offices are turning away from large asset managers in favor of customized, tax-efficient strategies — often by investing with one another.
As CRE prices reset and interest rates soften, 44% of family offices say they plan to boost real estate allocations.

Key Takeaways

A Wealth Shift Meets a Market Reset

More than $100T is expected to change hands by 2048 as part of the “Great Wealth Transfer.” This shift is helping a new generation of ultra-wealthy Americans reshape how capital flows — and commercial real estate (CRE) is a key part of their strategy, per Bisnow.

Since CRE’s 2021 peak, global investment volume has dropped 60%. For family offices, though, this reset is an opportunity — not a red flag.

From Hedge Funds to Hands-On Investing

Newbrook Capital Properties reflects this new approach. Robert Boucai, who once ran a $1B hedge fund, launched the firm in 2023. He now manages over $400M in real estate assets across 2,000+ multifamily units. He built the portfolio with tax efficiency and alignment in mind, often partnering with other families.

More family offices now prefer control over third-party management. “They’re asking if the people executing the strategy share their values and decision-making style,” said Adam Donahue, Managing Director at Newbrook.

The Numbers Behind the Trend

In 2024, North America had 970,000 people worth over $10M — a 5.2% increase from the year before.
More than 44,000 of them held $100M+ in wealth, and US billionaires controlled $5.7T — more than the next 10 countries combined.
The number of global family offices is on track to grow 75% between 2019 and 2030, rising from 6,100 to 10,700.

The capital surge is happening alongside strong market performance. The S&P 500 rose over 20% for the second straight year, and Bitcoin doubled in value in 2024. Tax laws also remain favorable, with 1031 exchanges and bonus depreciation intact.

Big Names, Bigger Moves

High-profile families are moving aggressively.

Declaration Partners, backed by Carlyle Group Chairman David Rubenstein, raised a $303M fund to target CRE. By October, nearly 60% of that capital had been deployed.

MSD Partners, the merged firm combining Michael Dell’s family office with BDT & Co., raised $3.2B for a real estate credit fund. Dell and employees contributed $600M of that total.

Entrepreneurial Families Enter the Arena

Smaller family offices are stepping in too. Jeremey Tahari took over his father Elie Tahari’s business in 2020. He restructured it into Tahari Capital, a private equity platform that includes a brokerage arm.

“We had a 50-year-old business that needed to become more corporate to grow,” Tahari said.

Since late 2023, the firm has been active in real estate. It bought a 31-unit East Harlem apartment building for $11.8M in January using a 1031 exchange. The deal was part of a strategy to move from East Hampton retail into Manhattan multifamily — aiming to recession-proof the portfolio.

Collaboration Is Rising

As family offices formalize operations, many are raising their own funds and investing together. Real estate attorney Elena Otero says she’s seeing more fund discussions among families, as some seek indirect investment options for relatives and peers.

This evolution comes as family offices adjust to shifting macroeconomic conditions and explore alternative strategies to protect wealth in a changing investment landscape.

Realm CEO Travis King, who advises 115 families with $200M–$250M in investable assets each, said real estate often requires collaboration. Many families want exposure but lack a direct entry point.

Why Direct Ownership Matters

Large asset managers like Blackstone and Apollo are attracting institutional capital. But many are slow to deploy funds, making it hard for investors to recycle their capital.

In response, asset managers have started targeting smaller investors — including high-net-worth families and retirees. But family offices often require more tailored solutions.

“They don’t always understand the tax strategies and interconnections families rely on,” said King.

Families also want control, even when co-investing. Real estate remains one of the few asset classes with intrinsic value, which makes it a long-term hold.