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​Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Jun 1, 2018

Middle Market Real Estate: An Inefficient Market Prime For High Yields

Middle Market Real Estate: An Inefficient Market Prime For High Yields

Better pricing and better structure in the middle market

Middle Market Real Estate is an inefficient market with mispriced assets and less risk that results in a fertile opportunity set for investors who are looking for investments with above average yields and low risk.


By targeting only small to mid-size equity investments, there are opportunities to capitalize on these inefficiencies and identify mispriced assets with significant growth potential.

The average transaction size of this market segment relative to the amount of capital seeking to be deployed, together with timing pressure and structural constraints, make it impractical for large institutions to execute middle market strategies.


Advantages of Investing in Middle Market Real Estate:

  • Under-the-radar market inefficiency creates an attractive opportunity to invest in the middle market.

  • Little correlation with macroeconomic market cycles.

  • Higher yields due to the pricing and structural premiums of the middle market.


Learn more about unlocking the advantages of Middle Market Real Estate by filling out the form below.


If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • What is Middle Market Real Estate?

  • Size of the Middle Market Real Estate

  • Why Should an Investor Invest in Middle Market Real Estate?

  • Risks Involved in Investing in the Middle Market

  • The Real Estate Capital Stack




Thanks to our Contributor


JCR Capital


JCR Capital Rebrands as Walker & Dunlop Investment Partners


JCR Capital is an alternative investment manager that provides capital solutions to middle-market commercial real estate sponsors. JCR provides joint venture equity, preferred equity, structured debt, and bridge loans for value-add, opportunistic and distressed transactions and special situations.


JCR was founded in 2006 and is managed by Jay Rollins and Maren Steinberg. Mr. Rollins and Ms. Steinberg have worked together since 1992, managing capital throughout several real estate cycles and investing approximately $2.4 billion in nearly 400 transactions.

Access PrimeAlpha Alternatives Education, Research, and Database of Managers and Investors
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