Seasoned real estate investment executive Ray Sturm has joined the firm and will lead the new platform, which will focus on specialty residential credit and rental properties.
NEW YORK, May 22, 2023 (GLOBE NEWSWIRE) -- 10X Capital, the New York-based alternative asset management firm, today announced that it has launched a Residential Real Estate Income Platform, which will be marketed and managed under the firm’s Tower1 brand. Seasoned real estate investment executive Ray Sturm has joined the firm to lead the new strategy.
Ray is the founder of two prominent venture-backed asset management companies. Most recently he was the CEO of AlphaFlow, which he founded in 2015, and was backed by Y Combinator, Point72 Ventures, and Social Capital. AlphaFlow acquired and managed over $1.5B of residential business purpose assets for a number of brand name institutional and sovereign investors, and completed a securitization of such assets with Jefferies and Saluda Grade. Before AlphaFlow, in 2013 he co-founded RealtyShares, which was backed by General Catalyst and Union Square Ventures, amongst others. Ray began his career on Wall Street as an investment banker at Bear Stearns and Lazard and earned a JD/MBA from the University of Chicago.
10X Capital’s new Tower1 platform will give investors exposure to a diverse pool of residential real estate loans and rental properties across the country. The platform will focus on 3 core areas: Residential Transitional Loans (RTLs), Non QM Residential Rental Loans (including DSCR), and Single Family Rental Properties (SFR) it acquires and manages.
Hans Thomas, Founder and CEO of 10X Capital, said, “In the US, the combination of aging housing stock, the underbuilding of new homes and the growth of consumer demand for the single-family residential lifestyle has created an ideal setup for attractive investment opportunities in income-producing residential real estate in the near term, especially for data-driven organizations like our own. With his proven track record of architecting innovative investment strategies and developing cutting edge asset management and capital markets technology, we are excited to have Ray join us and lead Tower1’s residential real estate rental income strategy.”
Over the last decade, Mr. Sturm established himself as one of the largest providers of capital to the private lending industry. He has partnered with over 100 private lenders across 43 states to deliver both retail and institutional capital. Since 2021, his investment vehicles have funded the construction or rehabilitation of thousands of single family homes across the country. Building on that, and 10X Capital's history of leveraging alternative data and cutting-edge technology in residential real estate, 10X Capital sees a unique opportunity in today’s residential real estate market.
“The current volatility and dislocations in the commercial real estate market generally, and the housing market specifically create ideal conditions for those with longer duration objectives,” said Russell Read, Chief Investment Officer of 10X Capital. “For our global investor base, the ability to transform short-term construction and renovation loans into long term assets like rental properties and permanent loans offers an attractive way to invest in U.S. real estate across the best markets. With interest rates at or near peak levels, we expect asset prices to become highly attractive over the coming quarters.”
The Company is deploying capital in this strategy through its own structure and in collaboration with select institutional partners.
For more information, please contact Zoe Wang (zoe@10xcapital.com).
About 10X Capital
10X Capital is an alternative asset management firm at the nexus of Wall Street and Silicon Valley, aligning institutional capital with innovative ventures. 10X Capital invests across the capital structure, with a focus on companies using technology to disrupt major industries, including finance, healthcare, natural resources, transportation, infrastructure, agriculture and real estate, and is one of the most active investors in the venture capital ecosystem according to PitchBook Data. For more information, visit https://www.10XCapital.com/. All real estate related activities are marketed, managed and operated under the Tower 1 brand.
