HFFS has relationships with the preeminent investors in the real estate community. The Company has an interactive proprietary database that maintains the investment preferences of over 1,100 institutional capital sources, including pension funds, university endowments, private foundations, insurance companies, banks and foreign investors.
HFFS' primary relationships are with the tax-exempt institutional community, which includes pension funds, university endowments, private foundations and their advisors. The investment objectives of these organizations are to satisfy their current and future financial liabilities and needs, such as providing pension fund retirement benefits or funding an endowment's educational programs.
Real estate is a large and growing component of these institutions' investment strategy and asset allocation. Investment approaches for these sources may include core, value-add and opportunistic strategies. Pension funds, endowments and foundations invest directly with real estate sponsors or through an investment advisor. HFFS, on behalf of its clients, specializes in identifying the best institutional capital sources for a given real estate opportunity.
Real estate investments are often part of the investment strategy employed by insurance companies to satisfy current and future liabilities. Real estate is often used within an asset allocation to execute an investment strategy. Many insurance companies invest on their own behalf, while others have formed management arms that invest on behalf of third parties, including tax-exempt institutions.
Commercial and investment banks as well as other finance companies invest in real estate on a direct basis and on behalf of their private banking clients. Specialty finance and credit companies often operate business lines dedicated to real estate investment. In addition, many banks sponsor wealth management strategies and direct private banking clients or high net worth individuals into real estate investments. Banks may also invest their own capital to establish or further client relationships.
Many overseas investors have diversified into U.S. real estate investments. This is a dynamic and growing market with investment preferences changing often due to currency, political and financial market issues.