Institutional (and other) investors may invest in a variety of public and private real estate products. Public real
estate products include shares of real estate investment trusts (“REIT”) and mortgage-backed securities
(“MBS”). Private real estate strategies are oriented to direct ownership of assets or more passive investments,
such as in funds and other managed vehicles. Is an investment in public real estate products such as REIT
shares or mortgage-backed securities the same as an investment in real estate? What are the primary
differences between public and private investment products and how do they relate to the potential satisfaction
of investment objectives.
Many institutional investors invest in managed vehicles, such as commingled funds and separate accounts.
Each of these has advantages and disadvantages to the investor as well as the fund or separate account
manager. Discuss the differences between commingled funds and separate managed accounts and how they
each offer potential solutions to the investor.