Five X Securities Enters Market with $1B REIT Fund Planned

A former executive at NFP Securities has created a new real estate securities firm, Five X Securities, with the intention of distributing commercial real estate opportunities to high-net worth individuals. The firm’s plans include the launch of a $1 billion, non-traded REIT, as well as the launch of a $250 million private equity fund that, when levered, would have at least a $500 million purchase power, David Young, principal and CEO of the company, tells GlobeSt.com.

"We fully intend to identify investment opportunities and craft institutional quality deals of the type previously unavailable to individuals," Mr. Young said. "These deals will feature low fees and an alignment of interest between the sponsor and the investor. And, it is our intent to distribute to high net worth individuals. At the same time, we will recruit top-flight institutional quality sponsors to augment our planned growth curve."

Five X has signed a multifamily company real estate investment and operating company, Oakton-based Mission Residential LLC, as its first client. Mission Residential owns and manages 30 apartment communities in Atlanta, Dallas, Nashville, and Charlotte, Raleigh and Greensboro, N.C..  Five X also hopes to ferret out opportunities in other real estate sectors, including industrial and office.  Before his tenure at Austin, Texas-based NFP Securities, Young spent eight years in New York City, first as president at New York Life Insurance Co. and then as CEO of NY Life Securities and Eagle Strategies. The University of Chicago-trained lawyer also taught insurance law at the Cardozo Law School and New York Law School.

For more real estate news and information, visit Blumberg Capital Partners.