With $2 Billion in Its Diversified 11-Year-Old Portfolio, Multi-Family Developer Plans Next Phase of Growth Across the U.S. with Expanded Investment Approach
ROERS COMPANIES EXTENDS ITS EXCLUSIVE INVESTMENT OFFERINGS TO INDIVIDUALS WORKING WITH REGISTERED INVESTMENT ADVISORS & FAMILY OFFICES
TWIN CITIES, MINN. — March 13, 2023 — In just over 10 years, Roers Companies grew a multi-family real estate development portfolio into 14 states, nearly 10,000 apartment units and $2 billion in development with the help of a network of more than 625 “family and friends” investors. Now — as one of the Top 3 Developers in the Twin Cities — it is making its investment opportunities available outside its friends-and-family network for the first time.
In its eleventh year, Roers Cos. is now also offering access to its private real estate investment offerings, or alternative investment syndicates (alts), to accredited investors working with registered investment advisors (RIAs) or family offices.
In 2023, individual investors are looking to diversify their portfolios for a number of reasons. They see growing stock market volatility, rising inflation and interest rates and a barrage of headlines about the prospect of an economic recession. While some are buckling down, savvy investors are pursuing a diverse mix of investments to position themselves to do more than weather the potential storm.
By opening up investment opportunities to be accessed through RIAs and family offices, Roers Cos. leaders are aiming to bolster the firm’s next phase of growth.
In the last year, Roers Cos. closed projects in five new states, Florida, Texas, Arizona, Colorado and Utah. In the next 12 months, its development pipeline is likely to include its first groundbreaks in North Carolina, South Carolina and Tennessee. The company’s latest project in Shakopee, Minn., The Blakeley, is now in the funding stage.
View other project renderings for The Blakeley
The Timing is Right for Advisors Looking to Source Alts for Clients
“According to new research from AltExchange, nine in 10 advisors intend to increase alts allocations over the next two years,” notes Jeffrey Grant, senior managing director at Roers Cos., in charge of rolling out the RIA strategy.
“We are excited to expand our investor community and offer investment opportunities in private multi-family projects to accredited investors through RIAs. A key benefit to these investments is that they are non-correlated to the stock market — they don’t come with the extra layers of management and other fees frequently found in traditional REITs or funds,” Grant adds.
“The offering to RIAs is a smart move on the part of Roers Cos., that should prove attractive to the people we work with and others,” notes RIA Kurt Durrwachter, founder and CEO of the 13-year-old Ledge Wealth Management in Sartell, Minn., with nearly $400 million under management. “The kind of REIT opportunities you often find in this space are usually basket-filled portfolios with hospitals, shopping centers and other big stuff. With this company, we can pick and choose from single projects like The Blakeley in Shakopee, Minn. That’s a very appealing strategy.”
Durrwachter adds, “Their one-stop business model with development, construction and property management is also very attractive. And their regular reporting of construction and other information offers the kind of detail we rarely see in this business. I think they’re pretty unique, and they have a very successful leadership team that has done an impressive job of growing the company in just 10 years to become one of the top developers in the Twin Cities.”
View other project renderings for The Whitney
Smart Scoping and Fast Project Lease-Ups = A Winning Model
Roers Cos.’ current investors agree that the time to focus on real estate investments is now.
James Lee, a veteran California real estate investor and native Minnesotan who has often invested in Roers Cos.’ projects, expects the RIA expansion to be successful, too. He cites the consistent added value the company brings to the table with its history of filling new lease-up projects rapidly — twice as fast as the industry average.
Lee also cites the critical research, scoping and planning Roers Cos. does, plus the biweekly construction and leasing updates and quarterly reporting to their investors that offer true transparency. He notes these details are “often missing with larger investment firms.” The financial returns can be significant, he says.
“Roers Cos. is like a Japanese car maker; they develop a quality product, build it and then redefine it to always improve on the model!” Lee says. “They’ve gotten very good at it, from making strategic site selections to overseeing the property management.”
“They have been very successful in just 10 years’ time,” Lee notes, “because they’re doing projects and making site selections in cities with projected job growth and housing shortages, especially in multi-family housing. That’s been very true in the Twin Cities metropolitan area, and it is true in other parts of the country where they are currently working, or plan to work.”
Roers Cos. Co-Owner and Founder Kent Roers shares Lee’s take on the opportunity available in today’s market for multi-family real estate investors.
“Despite the perceived economic uncertainty, Roers Cos., is well positioned to weather this period,” says Roers. “Single-family home construction is slowing and interest rates are pricing out potential homebuyers, which creates sustained demand for rental housing. Our focus on multi-family housing and our vertically integrated business model with development, in-house construction, and property management puts us in a strong position for growth in the year ahead.”
Roers adds, “My family and I are personally invested in these projects, right alongside our network of investors. We’re excited to expand these unique investment opportunities to RIA clients for the first time.“
For more information — or to interview Jeffrey Grant and/or Kent Roers about Roers Cos.’ RIA strategy, please contact Media Savant Communications, 612-220-6515, firstname.lastname@example.org, @mediasavant. To learn more about investing with Roers Cos. or to request a follow-up from our investment team, visit https://roerscompanies.com/invest/.
More About Roers Companies
Roers Companies is an emerging national leader in multifamily real estate investment, development, construction and property management based in Plymouth, Minn. The company builds quality rental housing in areas where demand outpaces supply. In 2023, the firm’s development projects and properties cover 14 states. The rapidly growing business is on track to reach 20,000 total housing units developed and $5 billion in development by 2025.