Private Capital

Peregrine Private Capital Corporation is a Newberg, Oregon-based private equity firm that specializes in offering securitized real estate products as alternative investments. Unlike other firms who specialize in buying, managing, and selling mature companies on behalf of their investors, Peregrine Private Capital provides 1031 exchanges and Delaware Statuatory Trust Investments (DSTs). These products help clients generate passive income with real property investments while circumventing the cost and hassle of property management.
Under the leadership of its president, Robert Smith, Peregrine Private Capital has managed hundreds of projects totaling billions of dollars. Their distinguished clientele includes commercial property owners on the West Coast and across the United States. The company’s overall strategy involves applying Modern Portfolio Theory (MPT) toward constructing diversified real estate holdings that are characterized by a higher risk profile, complexity, and lack of liquidity than the standard asset types: cash, bonds, and stocks. These alternative investments maximize cash returns at moderate risk.
Many alternative investment classes are restricted to institutional investors and accredited, high-net-worth individuals who can afford the high minimum buy-ins. Some alternative investment categories, like commodities and real estate, have a relatively low barrier to entry, which gives individual investors an opportunity to invest in real estate through vehicles like the 1031 exchange.
The Internal Revenue Service (IRS) defines the 1031 exchange as a like-kind exchange of one business or investment property for another. Investors who sell their property and then purchase like-kind property with the proceeds may benefit from significant tax advantages, such as deferment of capital gains liability. Replacement properties that generate rental income offer additional benefits that can make them an attractive investment. Rental income may incur interest expenses and depreciation that will translate into a high tax-equivalent yield.
DSTs are real estate investment trusts that can serve as like-kind investment properties in a 1031 exchange. As the legal owners of large commercial real estate assets, DSTs can provide access to high-yield institutional properties that are typically only available to accredited investors and entities whose net worth exceeds $1 million. They can include the same high-quality commercial properties that banks, universities, and pension funds carry in their portfolios.
Peregrine Private Capital is one of the leading providers of retail DST properties. Their investment projects include multi-family buildings, self-storage facilities , assisted living complexes, medical offices, retail malls, and industrial parks that can be used to generate passive rental income. By partnering with a sponsor like Peregrine Private Capital, retail investors with limited property ownership or management experience can buy shares in the trust to gain access to these institutional-quality assets. The trust legally separates the property from its investors, who are not involved in managing the DST or its real estate. Peregrine Private Capital acts as the real estate sponsor, organizes the DST, and sources,
DSTs can mitigate the risk of sole ownership of a single real estate asset. Fractional DST ownership diversifies investor equity across state lines and asset categories, and it can prevent investors from overpaying for a single replacement asset when prices are high. DSTs do carry risks. They can be difficult to liquidate, and diversification does not guarantee appreciation, profits, or cash flows, or protection against losses. Extrinsic factors like weather and economic conditions affect the value and appreciation of real estate. The response to changing circumstances is non-homogenous.
As a partner in creating wealth through real estate investments, Peregrine Private Capital guides clients through property exchange strategies and real estate investment tax deferment. The firm works with clients to simplify the security and investment processes while applying sound financial practices to portfolio management. Brokers engage in shared decision-making to maximize returns and meet clients’ investment needs.
President Robert Smith is a financial professional who built his career managing alternative real property investments. Robert has over 20 years of experience as a 1031 exchange investment representative. His high client retention rate is a product of the direct relationships he maintains with his investors before, during, and after property identification and closing. Robert is a founding member of the Alternative & Direct Investment Securities Association (ADISA), which is committed to upholding outstanding ethical business practices. The ADISA code of ethics articulates the organization’s core principles and the practices expected from professional members of the association. Peregrine Private Capital upholds the highest ethical standards in the industry.

Investors who are looking to diversify their portfolios should consider DSTs as a source of regular cash flow during times of inflation and market volatility. Peregrine Private Capital is here to help investors guide their financial strategy toward creating a bright future.