Newly minted brokerage firm targets property syndications
Ned Cohen, a commercial real estate syndication veteran, has formed an investment company that will identify opportunities for high-net-worth investors to participate in limited partnerships as equity investors. NHCohen Partners, and its affiliate broker-dealer NHCohen Capital, hopes to invest nationally in transactions of $15-50m.
Real estate syndications continue to be a popular investment for wealthy individuals. "It has been long established that alternative investments like real estate don't move in lockstep with the stock and bond markets and have become an invaluable part of a diversified property portfolio," Cohen said. "The benefit of a real estate syndication is that you have direct ownership in income-producing real estate that is designed to provide cash distributions and serve as a partial tax shelter."
Cohen is best known for his long tenure at Malkin Securities Corp., where he directed the securities offerings for the real estate syndications of Malkin Holdings. The company's portfolio, which includes the Empire State Building, is now part of Empire State Realty Trust. He decided to strike out on his own in order to follow an entrepreneurial bent as well as a shift in direction of Malkin Securities following the IPO of Empire State Realty Trust.
NHCohen Capital is registered with the SEC and FINRA and Cohen anticipates being able to conduct offerings starting in the New Year. The company will seek assets in the office, retail, multifamily and hospitality sectors. Within hospitality, Cohen likes the prospects of select-service hotels. The company will also consider investments in the industrial sector. "My goal is to work with the best quality sponsors I can identify," he added, underscoring that a main goal is to create product and geographic diversification.