Eugene Gorab leads Greenfield Partners, LLC, as President and CEO. Since starting the business in 1997, he has been involved in real estate investing. Eugene Gorab and his team at Greenfield invest in a broad range of real estate properties and opportunities, such as direct investment opportunities.
In real estate investing, direct investments are those that come with an ownership interest in a real estate asset. This ownership interest could be partial or full, depending on the specific opportunity available. Institutional buyers are often more drawn to direct real estate investments since they are often larger in size. Such investments also grant the investor more control over their decision making since they are free to choose which assets they want to invest in based on their type or location. However, direct investments are not always the best option for everyone. Since they must be held for several years at a time, they are not liquid. This means that investors cannot sell their real estate investment until that period of time is over. Indirect investing, on the other hand, solves this problem with illiquidity. These types of investments grant investors a share in a private or public investment company, such as a real estate investment trust (REIT). Investors can more easily buy and sell these shares in a real estate asset. It’s also easier for investors to start indirect real estate investing since buying shares requires less capital and less time. This contributes to the fact that indirect investing also lends itself better to diversification.
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The CEO and President of Greenfield Partners, LLC, Eugene Gorab handles private equity real estate investments for clients. Active in the professional community, Eugene Gorab belongs to several real estate-focused organizations, including the Urban Land Institute (ULI).
Dedicated to inspiring best practices among real estate professionals and solving community challenges via philanthropic engagement, ULI shares new reports relating to the future of real estate development. One of the organization’s reports from June 2021 demonstrated that commercial real estate could dramatically reduce negative climate change by adopting more electric assets. The report that highlighted the importance of moving toward electrification in commercial real estate assets was called Electrify: The Movement to All-Electric Real Estate. While ULI acknowledged that total electrification will likely not be fully adopted for five to 10 more years, electrification is key to getting commercial buildings away from fossil fuel combustion. This shift will move society closer to a decarbonized future. However, the environmental benefits of electrification aren’t the only benefits worth noting. In the ULI report, the organization also acknowledged the financial benefits of having an all-electric building. These financial savings apply to both construction of the building and its future operations. Adopting all-electric assets also protects commercial buildings from impending regulations both in the United States and around the world. For more than 25 years, Eugene Gorab has led Greenfield Partners, LLC, as CEO and President. Through the real estate private equity firm, he and his team manage over $7 billion in operating companies and real estate properties. Eugene Gorab’s investment philosophy at the firm involves investing horizontally across property types and vertically to maintain flexibility for clients.
With horizontal integration, companies acquire another business that operates at its same level in the value chain. Meanwhile, vertical integration refers to acquiring businesses that operate in the same value chain, but at a different level. In terms of investments, this distinction remains similar, where a vertical investment involves investing in a business that operates at a different level in a particular industry. For real estate investing, specifically, vertical integration offers many benefits. For example, vertical integration grants investors more opportunities when pursuing real estate deals. Rather than outsourcing certain aspects of an investment property to a third party, such as construction or management, vertically integrated investments align all of these interests and operations for investors. This means that when they see an opportunity, they can put the deal in place more efficiently since they are not dealing with any other business owners. There is also less risk associated with vertical investing in real estate. Vertically integrated investment firms are better positioned for ready-to-invest opportunities. This means that investors are presented with real estate investment opportunities that carry less risk since they are already fully prepared thanks to the firm’s vertically integrated team. This also contributes to better expertise of the entire market and not just one area, so investors can enjoy greater potential returns on their real estate investments. In 1997, real estate entrepreneur Eugene Gorab established Greenfield Partners, LLC. From a small firm of two employees in 1997, Eugene Gorab was able to grow the company into a firm recognized as a top-echelon private equity real estate investment company.
Despite the sudden economic uncertainties brought by the COVID-19 pandemic, a group of investors has remained calm because it has plenty of money with which to work. The data available with Preqin and Dealogic in February indicated that funds dedicated to the purchase of established companies such as venture capital and private equity have over $2 trillion in cash. This amount of money has just been raised from fundraising drives before the pandemic struck, and is readily available for investment. Fund managers holding these funds are on the status quo while the threats of the pandemic are still high. If governments can successfully hold the economies and societies for now, and if central banks can keep the financial systems intact and portfolio companies survive the economic turmoil, then, private fund managers can become the drivers of what is going to happen next to world economies. Private equity companies are in a better position now compared with the 2008 recession. During those times, private equity companies have invested a large amount of money in buyout acquisitions in 2006 and 2007, with nothing to spend after the 2008 recession. This time, private equity companies have large amounts of dry powder to leverage through the economic downturn brought by the pandemic. From its humble beginnings in 1997, real estate businessman Eugene Gorab was able to grow his private equity real estate firm Greenfield Partners, LLC into a company responsible for more than $7 billion in investments in real estate and operating companies. In addition to his responsibilities as President and CEO of Greenfield Partners, Eugene Gorab also serves on the board of trustees of Bucknell University.
Stay-at-home orders at the height of the coronavirus pandemic have forced many Americans to work remotely. With work-at-home arrangements slowly becoming a part of the new normal and changing the landscape of the nature of the workforce, Bucknell University researchers are studying the growing trend of telework. With James and Elizabeth Freeman Professor of Management Eddy Ng leading the research team, the study will try to measure the impact of the sudden change to the future of telework, to analyze how American workers can adapt to digital tools and new patterns of work, and to identify areas that require innovation for better remote working. The researchers have provided a survey link where workers around the world who have transitioned to remote working can participate. Te plan is to include workers from the US, Europe, Canada, Singapore, and Australia. Part of the plan is to collect a month’s worth of data through the survey. A website will be established to publicize the progress of the study. Greenfield Partners President and CEO Eugene Gorab leverages more than three decades of real estate experience to manage over $7 billion in real estate investments. In addition to his work at Greenfield Partners, Eugene Gorab supports the Pension Real Estate Association (PREA), a nonprofit trade association dedicated to supporting the real estate investment industry.
To support its mission, PREA sponsors membership interaction, education, and research initiatives on institutional real estate investment. This encompasses the organization’s support of the Real Estate Research Institute (RERI). While RERI operated independently for several years, PREA became a sustaining sponsor of RERI in 1991 and has since encouraged support of the institute and its research. Since 1987, RERI has stimulated research in real estate investment market fundamentals and performance. Over the years, the institute has funded more than 150 research papers and helped institutional real estate investors gain access to timely research on topics in the field. The research carried out by RERI predominantly focuses on topics that affect decision-making in real estate investments. At the 2019 RERI Conference, the institute presented papers on topics such as investment strategy, returns for private equity real estate funds, and risk retention. Eugene Gorab is the President and CEO of Greenfield Partners, which has sponsored nine discretionary investment funds and secured capital commitments from private and institutional investors over $4 billion. Eugene Gorab is affiliated with the Urban Land Institute (ULI), a nonprofit research and education organization dedicated to the responsible use of land.
After the COVID-19 pandemic served a huge blow to the US economy, the recent ULI Real Estate Economic Forecast report says that the economy has already hit bottom, but will slowly recover by the second half of the year. While the GDP has dropped by 6 percent and the unemployment rate expected to reach 11.3 percent by the end of the year, the three-year forecast is optimistic that the GDP will rebound by 3.9 percent in 2021 and 3.6 percent in 2022. Both figures are the highest growth levels since before the 2008 recession. The key to the recovery of the US economy rests on the US government’s actions, which can include three phases. The country is currently in the first phase, which involved re-opening of the markets and the gradual lifting of the stay-at-home orders. By the second phase, the economy will proceed to a reset mode where furloughed people go back to their places, which also be marked by growing demand in sales. The third phase will involve the broad recovery, but the entire picture of this broad recovery remains to be seen. For more than two decades, Eugene Gorab has served as the CEO and President of Greenfield Partners, LLC, a private equity real estate firm based in Connecticut. Through his company, Eugene Gorab helps clients invest in multiple property types, which helps their portfolios stay flexible and diversified.
Many beginning investors are unaware of the different types of real estate. Here is a brief overview of the three main types of real estate: - Commercial. Properties that hold business operations are deemed commercial real estate. This includes industrial, office, and retail space. Since commercial property leases often last for several years, they can provide investors with stable cash flow. However, successfully investing in commercial properties may be more complex than investing in residential properties. - Residential. Townhomes, single-family homes, multifamily homes, condominiums, and mobile homes are all examples of residential real estate. Each type of property generates returns in a different way. For instance, multifamily homes create income from rentals, while single-family homes increase in value over time. Historically, residential real estate offers the best market growth of the three main types of real estate. - Vacant land. Buying vacant land may be a way of creating equity in a short period. Unfortunately, this requires a great deal of knowledge and skill. Further, land cannot produce rental income for investors unless it is farmland. This often means land investors must develop the property, but land development is a profession that requires a different set of skills. A well-known figure in private equity real estate, Eugene Gorab is the founder, President, and CEO of real estate private equity firm Greenfield Partner, LLC, which has investments of more than $7 billion. Additionally, Eugene Gorab is a member of the board of directors of the Appalachia Service Project (ASP).
Launched in 1969, ASP is a Christian ministry that provides home repair and replacement through the spirit of volunteerism in Central Appalachia. In its more than half a century of existence, ASP has touched the lives of nearly 20,000 families through the efforts of over 450,000 volunteers. Open to everyone, the ministry offers powerful experiences for students and adults. ASP aims to eliminate substandard housing and transform the lives of those touched by its ministry. ASP operates in Virginia, West Virginia, North Carolina, Kentucky, and Tennessee. In distressed Hancock County, Virginia, ASP and its partners will be building new homes for 11 families in 2020. The first new home has been given to a retired Vietnam veteran who has been living with his family in a self-built, one-bedroom home with no floor coverings and minimal insulation. The President and CEO of Greenfield Partners, LLC, in Connecticut, Eugene Gorab and his team invest in real estate on behalf of investor partners. Operating across all property types, Eugene Gorab believes in the importance of being a proactive investor, and he promotes such behavior at his firm.
While there are several different approaches to investing, such as short-term investing and conservative investing, there are two main approaches: reactive and proactive. A large number of investors in real estate and other asset classes are reactive. This means they wait until things go wrong before they decide how they should respond. Since they wait to make choices, they forgo certain real estate investment deals based on the current interest rate. They often will not implement different policies or real estate products to protect themselves and their investments. Proactive investors, on the other hand, take initiative in all aspects of investing. Instead of waiting for a problem, they realize that any investment comes with inherent risks, and they implement different strategies to minimize this risk. They learn about the market so they can recognize problems as they are approaching, and they take action early. They make investment decisions based on the way the market has historically performed instead of looking only at its current state. |
AuthorCurrently, Eugene Gorab serves as the President and Chief Executive Officer of Greenfield Partners, LLC, a company he founded in 1997. Archives
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