Reynolds: As part of our ongoing strategy to grow our existing base of institutional investors, our goal is to raise the profile of Western National Group within the capital community and to expand our investor base, both in the US and abroad. Western National Group has been a highly active multifamily investment firm for nearly 60 years, with a sizable presence throughout the western United States. By further elevating this presence and strengthening our capital relationships, we will be able to expand our business opportunities and geographic footprint.

There are essentially three tiers in the evolution of our capital program, including:

• one-off equity partners with whom we collaborate to acquire or develop a single multifamily property
• more formal, programmatic capital relationships as we grow and foster our relationship
• strategic long-term capital partners, whom we can consistently draw upon for future transactions.

Our objective is to move from one-off transactions to more strategic capital relationships, which will enable us to streamline our business operations and generate long-term value.

GlobeSt.com: What can you tell me about the firm's investment strategies?

Reynolds: We are a multifamily investment, development and property-management firm that has been in operation since 1958. Western National Group is the parent umbrella company of five separate entities, including Western National Properties, Western National Property Management, Western National Contractors, Multifamily Ancillary Group and Resident Group Services. We manage more than 22,500 apartment units and own approximately 15,000 of them. Since 1997, we've completed 47 multifamily projects totaling roughly $2 billion, encompassing both acquisitions and ground-up developments.

Our investment strategy is to acquire and develop high-quality multifamily throughout the western United States, including Northern California, Southern California, Colorado, Nevada and Utah. What makes us unique is our vertically integrated investment platform, meaning we do everything from property management to construction entirely in-house. The fact that we are responsible for all facets of our multifamily investments and ensure quality control of our operations makes us extremely attractive to investors.

One of our primary acquisition strategies is to purchase value-add multifamily assets and reposition them through strategic capital improvements to drive long-term value. Our overall investments range from core to value-add to opportunistic, depending on the goals of our capital partners. For example, our ground-up multifamily projects are more opportunistic by nature, but we develop them with the long-term goal of selling them to a core buyer.

GlobeSt.com: How is your firm approaching foreign investors, particularly with the recent Chinese pullback?

Reynolds: We are actively pursuing foreign capital and strengthening our existing relationships with Asian, Middle Eastern and European investors. There is still plenty of capital available from Chinese and Japanese investors, and we continue to see strong investor interest in multifamily, which has historically been viewed as a stable, attractive asset class. Therefore, we do not foresee a complete pullback from the foreign investment community.

GlobeSt.com: What else should our readers know about capital relationships?

Reynolds: The disintermediation of investment management firms is a major trend that will continue to impact the real estate sector. Historically, institutional investors would invest in investment-management firms that would raise funds and then allocate the capital to real estate operators like us. Today, many institutional investors are bypassing the intermediary investment firm and investing directly with a real estate operating platform.

This direct relationship with the real estate operator creates greater operational efficiencies and a more streamlined process for multifamily investments. By essentially eliminating the middle man, institutional investors can avoid paying a management fee and also achieve greater transparency with their investments. This is especially the case with a fully integrated firm like ours—investors find it attractive knowing exactly who is doing the work, whether it's ground-up construction or renovations to an existing multifamily community.

Looking ahead, investment management firms will face competition as institutional investors move away from the allocator model and invest directly with real estate operators.

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IRVINE, CA—Despite news reports of overseas investors having difficulty moving capital into US real estate, there is still plenty of capital available from Chinese and Japanese investors, and we continue to see strong investor interest in multifamily, which has historically been viewed as a stable, attractive asset class, Western National Group's executive managing director Daniel Reynolds tells GlobeSt.com. Reynolds recently joined the firm, taking on the responsibility of building and maintaining capital relationships, as well as coordinating the firm's various investment strategies and opportunities with domestic and foreign investor clients.

Previously, Reynolds was head of client capital at Blue Vista Capital Management and managing director of LaSalle Investment Management's global client services group, both based in Chicago.

We spoke with Reynolds about his new role at the firm, as well as its investment strategies and approach with foreign investors.

GlobeSt.com: What are your goals in your new role with Western National Group?

Reynolds: As part of our ongoing strategy to grow our existing base of institutional investors, our goal is to raise the profile of Western National Group within the capital community and to expand our investor base, both in the US and abroad. Western National Group has been a highly active multifamily investment firm for nearly 60 years, with a sizable presence throughout the western United States. By further elevating this presence and strengthening our capital relationships, we will be able to expand our business opportunities and geographic footprint.

There are essentially three tiers in the evolution of our capital program, including:

• one-off equity partners with whom we collaborate to acquire or develop a single multifamily property
• more formal, programmatic capital relationships as we grow and foster our relationship
• strategic long-term capital partners, whom we can consistently draw upon for future transactions.

Our objective is to move from one-off transactions to more strategic capital relationships, which will enable us to streamline our business operations and generate long-term value.

GlobeSt.com: What can you tell me about the firm's investment strategies?

Reynolds: We are a multifamily investment, development and property-management firm that has been in operation since 1958. Western National Group is the parent umbrella company of five separate entities, including Western National Properties, Western National Property Management, Western National Contractors, Multifamily Ancillary Group and Resident Group Services. We manage more than 22,500 apartment units and own approximately 15,000 of them. Since 1997, we've completed 47 multifamily projects totaling roughly $2 billion, encompassing both acquisitions and ground-up developments.

Our investment strategy is to acquire and develop high-quality multifamily throughout the western United States, including Northern California, Southern California, Colorado, Nevada and Utah. What makes us unique is our vertically integrated investment platform, meaning we do everything from property management to construction entirely in-house. The fact that we are responsible for all facets of our multifamily investments and ensure quality control of our operations makes us extremely attractive to investors.

One of our primary acquisition strategies is to purchase value-add multifamily assets and reposition them through strategic capital improvements to drive long-term value. Our overall investments range from core to value-add to opportunistic, depending on the goals of our capital partners. For example, our ground-up multifamily projects are more opportunistic by nature, but we develop them with the long-term goal of selling them to a core buyer.

GlobeSt.com: How is your firm approaching foreign investors, particularly with the recent Chinese pullback?

Reynolds: We are actively pursuing foreign capital and strengthening our existing relationships with Asian, Middle Eastern and European investors. There is still plenty of capital available from Chinese and Japanese investors, and we continue to see strong investor interest in multifamily, which has historically been viewed as a stable, attractive asset class. Therefore, we do not foresee a complete pullback from the foreign investment community.

GlobeSt.com: What else should our readers know about capital relationships?

Reynolds: The disintermediation of investment management firms is a major trend that will continue to impact the real estate sector. Historically, institutional investors would invest in investment-management firms that would raise funds and then allocate the capital to real estate operators like us. Today, many institutional investors are bypassing the intermediary investment firm and investing directly with a real estate operating platform.

This direct relationship with the real estate operator creates greater operational efficiencies and a more streamlined process for multifamily investments. By essentially eliminating the middle man, institutional investors can avoid paying a management fee and also achieve greater transparency with their investments. This is especially the case with a fully integrated firm like ours—investors find it attractive knowing exactly who is doing the work, whether it's ground-up construction or renovations to an existing multifamily community.

Looking ahead, investment management firms will face competition as institutional investors move away from the allocator model and invest directly with real estate operators.