No Fund, Direct Deals: Coskata Capital Is Changing The Game For Family Offices And Private Capital

Family offices and private capital groups have traditionally focused on equity markets, fixed income and alternative asset investments, with real estate exposure primarily through large, commingled funds. But as these family offices have grown in size and prominence, so has their interest in direct real estate investments. 

Ken Ferretti, founder and managing partner of investment management firm Coskata Capital Partners, said family offices increasingly want to invest directly in real estate without the constraints of a fund, extended time to unwind a fund, exposure to asset classes that might not fit with family office interests, and paying a double promote to a fund manager. Direct investment also allows for greater investor control over investment selection and timing compared to traditional funds and provides "tremendous" tax benefits, Ferretti said.  

But accessing institutional-quality real estate deals with experienced, successful joint venture partners without investing through major institutional fund managers is a rare feat. Coskata Capital is on a mission to reverse this narrative, providing access to these deals before they hit the wider market.

“There’s considerable appetite from these family office groups for a more curated, boutique approach to CRE investment,” Ferretti said. “We bring institutional-quality deals to family offices and private capital groups that haven’t typically had access to these premium opportunities to invest.”

Coskata’s approach to CRE deals gives family office and private capital groups two options: They can invest directly with a joint venture partner and manage the investment themselves, or they can invest directly but have Coskata provide ongoing, institutional-level discipline, management and oversight of the investment alongside them — all for a fraction of the fee of large institutional funds.

For more than a decade, Ferretti worked at the prominent $10B opportunistic fund  CrossHarbor Capital Partners as a managing director and head of asset management. During his tenure, he said CrossHarbor had a bottoms-up approach to investing — with a heavy emphasis on underwriting, detailed analysis and making sure the downside risk was adequately protected. 

After 12 years at the firm, however, Ferretti decided to pursue a more entrepreneurial path. CrossHarbor is the “gold standard” in real estate investing with its scale and success in the opportunistic fund space, Ferretti said. That same level of heightened diligence, management and analysis is what he’s brought to Coskata.

“I would always think to myself, ‘What if I could bring this same level of institutional-quality deals and intensity on diligence and management approach, but to family office capital, which hasn’t typically had access to that level of deal and opportunity,” he said. “Now, we’ve done exactly that.”

In today’s investment climate, Coskata is focusing on deals mainly in the multifamily space. Ferretti said the firm doesn’t believe in a broadly marketed process for finding investment groups. This is because family offices and private capital groups need to know they’re working with a trusted partner with an excellent track record, and vice versa for the developer.  

“Investing in joint ventures is like entering into a marriage,” Ferretti said. “Each group brings different capabilities and strengths to the JV, be it capital, development expertise or market expertise. Over the term of the investment, you want to ensure that you have the right partner.”  

Coskata has a portfolio of opportunities across the U.S. and is currently working on two multifamily deals in Sarasota, Florida, and Charlotte, North Carolina. 

The Sarasota deal, a 325-unit, $102M multifamily development just south of downtown near Siesta Key, successfully closed in September. Coskata brought in a large Boston-based family office to provide the limited partner equity for the investment, while the developer spent four years chasing the land and getting it under contract.

Interestingly, this land originally was not zoned for multifamily. The developer, however, saw that as an opportunity.

“The developer spent two years and a lot of handshakes, negotiating with the property abutters to get the multifamily restriction on the land site at use removed, which created tremendous value, then spent the subsequent two years getting all the design, permits and approvals in place to make the property shovel-ready," Ferretti said.

In Charlotte, Coskata and the same developer are working on a similarly sized deal — a 334-unit, $105M multifamily development located in the University City submarket, right on the LYNX Blue Line light rail. This is the last land site of this size in all of Charlotte that could be developed adjacent to a light rail station. 

The developer spent six years working on the land with the seller — building trust and favor to get the property under contract on a direct basis — before it ever hit the market. Once the necessary permits and approvals are achieved in December, the team will engage with investors and target a groundbreaking in the spring of 2026, Ferretti said.

“Both properties were acquired in a creative and entrepreneurial way to yield an advantageous land price, coupled with more beneficial construction pricing than we’ve typically seen in today's market,” he said. “With our Charlotte deal, we’re able to build to a 7.25% untrended return on cost, which is favorable to investors, especially in a growth market like Charlotte.”

Ferretti expects investment activity in the family office and private capital sector to only increase moving forward. Real estate has always been an attractive asset class from a tax standpoint, but this has been accentuated with the recent passing of the One Big Beautiful Bill Act in July. 

This act has enhanced and extended tax advantages for CRE investments, Ferretti said. One way it’s created a favorable environment for investors is through 100% bonus depreciation. 

“With the new bill making permanent the bonus depreciation on real estate assets, a family office can accelerate a larger amount of depreciation, shielding more income, improving after-tax returns and accelerating distributable cash flow for these multifamily development opportunities,” said Jonathan Farrell, CPA and partner at the accounting, tax and advisory group Johnson O’Connor, which works closely with Coskata.  

The U.S. is on the precipice of the greatest transfer of wealth in history: an $84T pass from baby boomers to their heirs over the next 20 years, according to Ron Diamond, founder and chairman of Diamond Wealth. What was once a relatively quiet market is now set to be at the forefront of investing, with a heavy emphasis on private markets and, particularly, private real estate. 

The number of single-family offices has grown from 6,130 in 2019 to a projected 9,030 by the end of 2025, an increase of 47%. The number of family offices with allocations to private markets, namely private equity and real estate, has also surged by over 500% since 2016, rising from 651 to 4,067. It's clear the market is showing no signs of slowing down any time soon, Ferretti said. 

“This will be a very active market for years to come, and Coskata is here to bridge the gap between institutional discipline and private capital flexibility,” he said. “We’re redefining how private investors enter large-scale CRE deals.”

This article was produced in collaboration between Coskata and Studio B.

Contact Emily DeNardo at emily.lynch@bisnow.com 

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