How one investment firm is mixing tradition, tech and relationship to build something special.
Paradyme Investments is a boutique private equity firm and multi-family office, born from decades of experience in the real estate industry and the sum of experts with multi-disciplinary backgrounds ranging from land acquisition, entitlement, project and construction supervision to development, debt financing, complex investments and wealth management.
Ryan Garland has an unparalleled ability to understand the real estate market and to consequentially shift his strategic thinking – that’s the foundation on which he has built his stellar career. We met with Ryan during the Context Family Office Summit in Miami.
Ryan, why did you establish Paradyme?
We began with residential properties then shifted to luxury real estate. After the crash in 2008, it became obvious commercial real estate would be the soundest strategy for our investors because assets such as multifamily developments and hospitality had weathered the storm. We designed Paradyme to respond to the ever-changing real estate market, established strict vetting processes with respect to the sponsors with whom we engage, and the projects we fund. And we built proprietary tools combined with world class software solutions to build proformas and financial stress tests. We further strengthened our risk mitigation and asset protection with an in-house governmental affairs division, and partnerships with leading law firms both domestically and internationally.
Ryan, what makes Paradyme different from other private equity firms or multi-family offices?
I think at the core, lifelong relationships with our investors is the foundation of Paradyme Investments. Our investments have an average five to seven year term, and our clients typically roll over their gains at the conclusion into one of our latest opportunities. We take relationship building to great lengths, specifically to answer our investors’ inquiries as to their investments and go beyond everyday courtesy by assisting them with their travel needs, dinner reservations, and with our partners, granting them access to exclusive experiences to mark their most significant life events.
With sponsors the relationship goes beyond identifying the best in class to collaborate with, from a business perspective we enter our projects on a joint venture basis and do so for numerous reasons. Being a partner with a sponsor means having the ability to be involved in the decision-making process at every level, overseeing day-to-day construction progress and as such deploying funds in a supervisory role. The difference also lies in our sophisticated back office operations division which allows us to evaluate a deal in ways many other offices cannot, if only for our extensive in-house manpower and the breadth of their skill sets, combined with state-of-the-art technology. We had to build this infrastructure to process the dozens of proposals we receive on a weekly basis, of which we only consider a handful. Based on the reputation of our challenging vetting processes, we have also opened our due diligence and underwriting services to other single family, and multi-family offices.
There is a lot of talk of ESG (Environmental Social Governance), how does this translate into Paradyme Investments’ deal selection and overall business philosophy?
That’s a great question! Consideration for ESG, which was an afterthought even a decade ago, has taken front and center position not just in real estate, but for all investments. Whether a result of the 2008 crash, or a generational consideration fueled by millennials is a difficult question to answer but it’s undeniable that this consideration will only grow. Why ESG fits into the Paradyme Investments core philosophy is better understood when paralleled with one of Paradyme Investments’ founding principles, making real estate investments accessible to a broader audience. We established Paradyme to give individuals and their families, a better financial future; it stood to reason that the projects we fund should contribute to a better overall future, too, such as a healthier and cleaner environment, for generations to come. We are currently funding a LEED Platinum (Leadership in Energy and Environmental Design) certified mixed-use condo project in Denver and reviewing several other developments which integrate green building materials, health and wellness amenities, renewable energy, water conservation and recycling for example. As we develop deeper relationships with family offices, we have found that ESG is a primary consideration in their investments reviews, leading to the discovery of new technologies, and invaluable partnerships for Paradyme Investments.
Paradyme is deeply invested in technology, why is it so important to you?
Look around you. Technology has permeated every bit of our lives. I have an intelligent home system that allows me to control every aspect of my home from my phone, even when I’m across the world. I can conserve energy by regulating the heating and cooling, ensure my family’s security with cameras inside and outside my home, set invasion alerts, control the pool and spa, turn on lights, open my garage door, and much more! At the office we use intelligent whiteboards and technology that allows us to be connected to our investors 24/7. We use software solutions to support our due diligence and underwriting activities. We are very involved in the artificial intelligence arena as it pertains to investment opportunity tracking, and identifying development zones before our competition. Fintech is another area we explore with applications ranging from cryptocurrency and blockchain to secure our investors, to hosting. In our developments we consider fully automated smart home technology, for commercial and residential projects, which go beyond basic functionality to include health monitoring, environment monitoring sensors to optimize wellness, water purification, vitamin infused water, arcadian rhythm lighting, and hospital grade air.
Lastly Ryan, why should investors choose Paradyme?
You mean aside from all the answers I have given you so far! (Ryan let out his warm laugh at this answer!). The simple answer is EVERYONE at Paradyme is devoted to our investors, to the responsibility of their investments, and lives by our core values of integrity, transparency, authenticity and significance of relationships. We have built a culture of excellence and accountability which goes beyond the norm, a familial atmosphere where all team members communicate respectfully and support each other…we are even known to occasionally have fun!
It is the sum of our people, processes, deal evaluation criteria, and choice of development partners which has allowed us to historically reach yearly average returns of 17.7% to our investors. There are no guarantees in the investment arena, that is just a fact. Investors should consider Paradyme because of the great lengths we go to in terms of risk mitigation, asset class selection, and an ability to rapidly implement Paradyme shifts to adapt to an ever evolving real estate market.