Ryan Jensen and Ted Oswald want potential real estate investors to keep their money at home with real estate assets they can see and touch in Greater Des Moines.

Jensen has been with CBRE|Hubbell Commercial for the last eight years and has earned a reputation for being able to turn around high-dollar, complex deals. After more than a decade in the real estate business, including stints with Sheldahl and Associates Newbury Management Co., Oswald started T&L Properties LLC in Granger. The firm’s portfolio in and around Greater Des Moines includes 700 multifamily units, office, retail and warehouse space, as well as self-storage units.

 

The two men are good friends who, for more than a year, have been putting together a real estate investment firm called Compounding Capital Holdings that seeks accredited investors to participate in syndication deals that for local commercial properties.

Accredited investors have a special status under federal financial regulation laws that recognize that they have the sophistication to participate in private, sometimes high-risk investments. They must have the financial wherewithal – net worth of at least $1 million or annual income of at least $200,000 for the last two years – to withstand the risks and enjoy the rewards.

Jensen said the typical investor might not have the contacts necessary to participate in large commercial real estate investments, but is seeking a stable real estate investments over the uncertainty of stocks and bonds.

Typically, such an investor would want to invest $50,000 to $100,000 with the expectation of realizing a return of 10 to 12 percent over 10 years, the standard exit date for such investments, Oswald said.

“There really is an untapped market for them,” he said.

Compounding Capital’s first investment is a former Mercy Medical Center – Des Moines office building at 207 Crocker St. The plan is to convert the the four-story structure, built in 1971 by the Weitz Co., into into multifamily housing.

The project is typical of what investors can expect.

“We want to keep the ownership of good real estate assets in the hands of people who live and work here,” Jensen said.