IDR ODCE Index Fund Now Open to Accredited Investors

First and Only Index Fund for Private Real Estate Open to Accredited Investors, Using Same Strategy as Some of the World's Largest Pensions Funds

INDEPENDENCE, Ohio, Aug. 2, 2022 /PRNewswire/ -- IDR Investment Management, LLC ("IDR"), the innovators behind the first and only index fund for private real estate, have expanded access to wealth management platforms serving high net worth individuals ("Accredited Investors"). New investors now have the opportunity to participate in an indexing strategy previously limited only to institutional investors.  

The IDR Core Property Index Fund (the "ODCE Index Fund") – with over $4 billion in AUM and patented investment models – has closely replicated the return performance of the NCREIF Open-End Diversified Core Equity Index (or "ODCE Index") with less than 12 bps of tracking error since launching the Fund in 2018. The ODCE Index has been tracking market performance for the past 45 years and today is considered to be among the most comprehensive benchmarks for U.S. private real estate. The index is similar to what the S&P 500 is for the largest publicly traded stocks. More than 75% of global institutional real estate investors use ODCE as their benchmark.

The ODCE Index is comprised of over $337 billion in market value that is capitalized by more than 4,000 global investors. Its roughly 3,300 properties are geographically diversified across the 35 largest U.S markets. Property types include industrial, apartment, office, retail and specialty, which individually average approximately $100 million in value per asset. The ODCE Index has produced a 9.9% net total return over the past 10 years as of March 31, 2022 and due to inflation, property supply imbalances and strong rent growth, 27.3% over the past year.

"Other asset classes have benefited from the use of passive investment strategies in portfolio management. The ODCE Index Fund provides investors of all sizes with low-cost access to private real estate in an efficient index fund structure," said Gary Zdolshek, CEO of IDR. "We are excited to welcome accredited investors to join our institutional investor base in what we believe should be the third leg of a compelling investment strategy alongside equities and bonds."

Garrett Zdolshek, IDR's portfolio manager added, "Diversified private real estate investment provides many potential portfolio benefits and historically has provided a hedge against inflation, stable income and low correlation to stocks and bonds. Indexing also reduces single property and manager selection risk while providing potentially attractive returns over a full market cycle."

IDR investors include several of the largest pensions in the U.S. including the Teachers' Retirement System of Texas ("TRS"), which initially backed the Fund in 2018. Jared Morris, Investment Manager of Real Assets for TRS noted: "We have seen a deep level of interest in public markets for index products such as ETF's on the S&P 500. What IDR is doing is a major innovation for private equity real estate and will bring the same portfolio benefits to both the large institutions and qualified retail investors."

IDR maintains a strategic partnership with USAA Real Estate, which has a 40-year track record of market performance and over $36 billion in assets under management operating out of ten global offices in the United States, Europe and Asia.

IDR has provided private equity real estate investment management services for over 15 years to institutional investors. IDR professionals developed and manage the first and only index fund for the private equity real estate asset class. In January 2017, IDR entered a strategic relationship with USAA Real Estate pursuant to which USAA Real Estate owns a majority interest in IDR Investment Management, LLC. IDR is headquartered in Independence, OH and currently has over $4 billion in assets under management. For more information, visit www.idrinvestments.com

Along with its affiliate companies, USAA Real Estate invests across the risk spectrum for a global client base, managing over $36 billion in net assets under management within a diversified portfolio across North America and Europe. USAA Real Estate provides strategic equity and debt capital, including to capitalize on the accelerating demand for technology-driven real estate assets, to meet the critical need for housing solutions, and for other market and capital structure opportunities exhibiting compelling risk-return characteristics. For more information, visit usrealco.com.

The Fund is a continuously offered private fund that is only offered pursuant to a private placement memorandum, which describes risks related to an investment in the Fund. The Fund is not registered under the Securities Act or any state securities laws, and is offered to accredited investors under Section 506(c). Shares of the Fund are not publicly traded or listed on any securities exchange, shares are redeemable only through the share repurchase program and investor have no right to require the Fund to repurchase shares and therefor is not appropriate for investors requiring liquidity. You may receive little or no return on your investment or you may lose money by investing in the Fund. The ODCE Index is a core capitalization weighted index that includes only open-end diversified core strategy funds with at least 95% of their investments in U.S. markets.

SOURCE IDR Investment Management