Principal Real Estate Investors provides investment solutions to individuals and institutions. It offers access to real estate investments including private equity and debt in both domestic and select international markets. Today, this registered investment advisor (RIA) in De Moines, Iowa, oversees billions of dollars in client assets.
As a fee-based firm, some advisors here can receive securities commissions in addition to client-paid fees. A fee-only firm, by contrast, focuses strictly on client fees.
Principal Real Estate Investors Background
Principal Real Estate Investors broke ground in 1998. It’s currently a wholly owned subsidiary of the Principal Financial Group, Inc. The firm also delivers its services in partnership with other asset-management firms. These companies employ experts on investing in various asset classes, including equities, fixed-income and alternative investments.
Principal Real Estate Investors Client Types and Minimum Account Sizes
Principal Real Estate Investors serves a diverse range of clients including:
- Individuals, both high-net-worth and non-high-net-worth
- Corporate pension and profit-sharing plans
- Taft-Hartley plans
- Charitable institutions, foundations and endowments
- Municipalities
- Registered mutual funds
- Private investment funds
- Trusts
- Sovereign funds and foreign funds
- Supranationals
- Central banks
- Collective investment trusts (CITs)
- Wrap programs
- Insurance separate accounts
- Life insurance
- U.S. and international institutions
To establish a separately managed account (SMA) with the firm, clients will generally need to make a minimum investment of $25 million to $250 million, depending on whether you're an individual or not. These minimums, however, may be negotiable at the firm's discretion.
Services Offered by Principal Real Estate Investors
Principal Real Estate Investors delivers advisory services concerning private real estate equity and private real estate debt. Additionally, the firm specializes in public real estate debt investments, including commercial mortgage-backed securities and public real estate equity securities issued by real estate investment trusts and other companies.
In partnership with other asset management firms, Principal Real Estate Investors also designs and monitors investment portfolios that utilize the following asset classes:
- Equities
- Fixed-income
- Real estate
- Alternative investments
- Multiple asset classes
Principal Real Estate Investors Investment Philosophy
Principal Real Estate Investors focuses on long-term investing with an emphasis on in-depth market research to identify securities and strategies. The film relies on the research and expertise of its boutique asset management partners. Each specializes in a specific asset class.
Fees Under Principal Real Estate Investors
The firm primarily charges investment management fees as a percentage of assets under management (AUM). The percentage varies, depending on account type, investment strategy and the size of the account. For public real estate equity and debt investments, these fees generally range from 0.20% to 0.85%, depending on the strategy and account size.
SMA fees generally range from 0.23% to 0.55%. Accounts are also responsibible for transaction fees, brokerage commissions and mutual fund expenses. These vary depending on the funds you’re invested in and how often trades are executed in your account. So you should carefully review investment prospectuses and other fee-related documents that are provided to you or are publicly available.
What to Watch Out For
Principal Real Estate Investors has no disclosures present on its SEC-filed Form ADV.
Some members of the Principal Real Estate Investors staff are registered representatives of affiliated broker-dealers Principal Funds Distributor (PFD) and Principal Securities Inc. (PSI). In these capacities, they may receive commissions, which is a potential conflict of interest. However, the firm and its advisors are bound by fiduciary duty to act in your best interest.
Opening an Account With Principal Real Estate Investors
The easiest way to get in touch with Principal Real Estate Investors is to call (800) 533-1390.
All information is accurate as of the writing of this article.
Tips for Finding the Right Financial Advisor
- If you can't meet the minimums of Principal Real Estate Investors, there are plenty of other financial advisors who serve your area. To find such options, use SmartAsset's free financial advisor matching tool. It suggests up to three advisors who serve your area, with the final choice of who to work with being up to you. Get started now.
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