BETHESDA, MD-Profit Investments, a specialist in public equity investments, is now adding commercial real estate to the mix. The company has tapped industry veteran Troy S. Jenkins to direct the unit. Jenkins, who was at CBRE Global Investors for nearly a decade, will be managing director.

The company expects to raise about $150 million for its real estate play, Jenkins tells GlobeSt.com. "We will be investing in all four food groups," he says, referring to the retail, industrial, office and multifamily categories. The investments won't be in gateway cities, but the next tier down. That means such cities as Atlanta, Denver, Portland, San Diego, Jacksonville and Memphis—cities, in other words, that have a stable economic base and solid growth prospects but haven't seen a huge run up in building prices, Jenkins said. It is a sweet spot because while interest isn't intense right now in those cities, Jenkins says, within 24 months or so it will be.

Investments will range in amounts of $14 million to $40 million and will be leveraged at the most by 40%, Jenkins says. "We are in the process of sourcing opportunities in all four product groups," he says.

The company is also in the process of fund raising, targeting in particular institutional investment. "Because we qualify as an emerging manager real estate program our biggest target are pensions with" a focus in this area," Jenkins says. The company will also target university endowments, foundations and possibly insurance companies.

Jenkins is looking forward to the challenge and opportunity this new role presents--but he also pleased to be joining Profit for a personal reason: the founder of the company, Eugene Profit, was a friend when the two attended Yale University and played football for the school. After graduation, Jenkins pursued his career in commercial real estate; Profit went on to form his firm but first took a detour by playing football for the Washington Redskins.

Profit Investments serves institutional and retail clients investing in U.S. equities. The firm manages large-cap, small-cap and socially responsible portfolios.

"The diversification into real estate investment services is a natural extension of Profit's growth and success as an institutional investment firm," says Eugene Profit, CEO, in a prepared statement.

Instant Insights /

Profit Investments Adds Real Estate to Platform

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