For decades, real estate acquisition and portfolios have been the key to wealth accumulation across the world.
Despite its potential, many have been excluded from its most lucrative segments due to race, resources, access, and lack of knowledge. Still, through proper education and exposure, investors are discovering opportunities to grow their wealth to positively impact generations to come.
There is no doubt that investing in real estate is gaining momentum daily in Nigeria, no thanks to the general inflationary rates and depreciation of the naira. As the momentum of investing in real estate in Nigeria is growing, Nigerians are advised not to only rely on the Nigerian property market but also to diversify into institutional-grade assets that generate passive income and demonstrate resilience during economic downturns.
Institutional-grade multifamily real estate – large apartment complexes comprising dozens and hundreds of units – has historically been the domain of the world’s wealthiest families and private equity firms.
While some Nigerians have acquired single residential units in other parts of the world to hedge against inflation, very few have accessed true institutional-grade multifamily investments that offer scale, professional management and diversified tenant risk.
However, over the years, a real estate investment company, XSITE Capital Investment, with a successful track record, has helped hundreds of investors access these multifamily assets in the United States. The firm has recently established a subsidiary, XSITE Africa, focused on connecting qualified Nigerian investors to these recession-resistant assets with the goal of helping them build generational wealth.
Meanwhile, one may begin to question the latest rush for overseas investment, but it is discovered that real estate investment, being a distinct asset class and a store of value, has become a global trade for wealth creation among corporate individuals, firms, and countries.
The benefits of investing in institutional-grade multifamily properties are substantial. Well-chosen assets can deliver predictable cash flow, excellent returns, tax advantages and portfolio diversification.
What sets XSITE Africa’s approach apart is its systematic, data-driven methodology refined through years of successful acquisitions and a $217M portfolio.
The firm focuses on markets first, properties second, analysing thousands of assets and locations using key economic indicators before considering a specific acquisition.
The methodical approach has allowed XSITE Capital Investment to deliver over $7.8M in returns to its investors and acquire 1,106 units across strategically selected U.S. regions. Each property undergoes rigorous due diligence, including a detailed underwriting process, physical inspections, financial audits and rent growth analysis.
The company’s latest acquisition exemplifies this approach: Grove Parkview is a 268-unit institutional-grade property in Atlanta’s Gwinnett County. This $49.1 million investment represents the scale of institutional multifamily investing that is accessible to investors who qualify. Such properties are strategically located in growing metropolitan areas where housing demand consistently outpaces supply.
For Nigerian investors, this approach provides a refreshing alternative. Each investment comes with detailed projections, regular performance updates and complete financial transparency. It’s worth noting that investors of such properties earn returns through rental income, appreciation, and profits generated by business activities ongoing in the property.
The inflation-hedging capability of multifamily real estate stems from the positive relationship between economic growth and the demand for real estate, which drives rents higher and ultimately translates to higher capital values.
By investing in multi-family assets, Nigerians can diversify their portfolios geographically and economically, significantly reducing the risk associated with concentration in a single market or currency.
For those focused on legacy building, multifamily properties offer a compelling and reliable vehicle for intergenerational wealth transfer. These assets can provide sustainable income streams while preserving capital as the years go by – a powerful combination that creates lasting financial security.
Through XSITE Africa, Nigerian investors now have a structured pathway to access this previously gated asset class, opening new possibilities for wealth creation that transcends borders and economic cycles.
Abiola Yusuf, an investment economist, writes from Lagos.
