What Real Estate Investment Property Operators Say About Midloch as a Capital Partner

Midloch Investment Partners was created to bridge the gap between quality real estate, management, and investors in the small and middle markets — a significant segment of commercial and multifamily real estate that’s under the radar of institutional investors and above the capacity of friends and family to capitalize quality properties. We play our part by investing joint-venture equity, preferred equity, mezzanine equity, and occasionally debt.

Typically, Midloch invests between $1 million and $15 million in properties valued between $5 million and $50 million at the time of investment, though sometimes we invest in larger projects. Midloch places capital in multifamily, industrial, retail, and office properties, partnering with local developers and operators primarily using a value-add strategy.

Since Midloch’s inception, we’ve invested alongside over 20 project sponsors who are leaders in their local markets and experts in particular property types. Here’s what a few of them have to say about working with Midloch as a capital partner.

"They let us manage the day-to-day operations and step in with input when needed."

After getting his start in commercial real estate working alongside his grandfather, Kurt Bender founded Bender Companies in 2011. The Chicago-based real estate investment firm specializes in the acquisition and management of value-add multifamily properties.

Kurt was first introduced to Andy Sinclair, founder and CEO of Midloch, at a conference in 2019. The two stayed in touch over the following years, and that connection eventually led to a partnership in 2022 with the joint acquisition of Country Meadows Apartments, a 466-unit community on Madison’s west side, a highly sought-after and stable submarket.

Bender Companies describes its partnership with Midloch as one built on trust. “They let us manage the day-to-day operations and step in with input when needed. That level of trust and alignment makes for an effective partnership," Kurt says.

The alignment between the two firms goes beyond execution. Both share similar investment goals, a common approach to deal structure and exit strategy, and a commitment to addressing the growing demand for quality, affordable housing in middle-income markets.

"We're growing in the same direction with the same values."

Kevin James is a principal with Black Gate Partners, a retail real estate investment firm based in Columbus. Midloch and Black Gate co-invested in Douglas Square, a four-building neighborhood retail center in the Kansas City suburb of Lee’s Summit, Missouri.

Before partnering with Midloch, Kevin’s firm had raised equity capital exclusively from their network of friends and family. But they wanted to scale, and recognized Midloch as a compatible partner. “We’re growing in the same direction with the same values,” Kevin says. “It was clear from the beginning that Midloch was going to help us make good decisions and not get in our way.”

Kevin is a former retail property broker with Colliers. Black Gate deploys a value-add and core-plus strategy to investing in retail properties. They’ll look anywhere in the U.S. but mostly operate in the Midwest.

On a day-to-day basis, Kevin says interactions with Midloch are smooth, not intrusive, and that the company adds value in a variety of ways. “They’ve helped us negotiate better loan terms and rates, offered suggestions on who to talk to and what to do. They have relationships across multiple product types with multiple markets. So they’re a resource as well as a capital partner. As an example, they introduced us to the broker who sold Douglas Square, who did a phenomenal job.”

“We only want to work with people that we like and trust, and the team at Midloch fits,” Kevin says.

"Midloch trusted us, took a chance on us, and it paid off nicely for both."

Following a long run as a commercial real estate broker, Mike Wilhelm and a partner launched Fountain Real Estate Capital in 2019. They invest in, own, and operate industrial real estate, with a growing portfolio that exceeds 1.4 million square feet. The firm is based in Minneapolis.

Principals of Fountain and Midloch met during Covid. They were introduced by representatives of the Colliers debt and equity team. Mike remembers Midloch having a good understanding of the market, explicit interest in the middle-market, and being likable and seemingly easy to work with.

The two companies’ first co-investment was St. Anthony Industrial, a 153,928 SF last-mile industrial property located just north of downtown Minneapolis.

“It was our first experience not just with Midloch but with JV equity,” Mike says. “Fountain was new in the lifecycle of our company. Midloch trusted us, took a chance on us, and it paid off nicely for both.”

What’s it like to work together on a co-investment? “Midloch gives you freedom and the reigns to do what you need to do on a daily basis, but lets you know if they have a concern or a point of view. We have monthly calls with the asset management team, but no one waits if they need something in the meantime,” Mike says.

He observes that Midloch appreciates value-add opportunities with multiple ways to increase value. “That typically means the asset has a good story, multiple tenants are better than single, perhaps the property needs tenanting backfill, and mark to market on rents. It’s about how to get the story with value-add to achieve the projected return.”

Mike adds: “Midloch has their objectives, but some flexibility on how they arrive at those objectives. They can get creative, and they let us be [creative]. They don’t just look at things from one direction; they peek around corners.”

Since St. Anthony, Fountain and Midloch have invested in five more properties together. Now, Mike says, “we give Midloch a first look at every deal we’re working on. Maybe because we’re all from the Upper Midwest — it’s hard to qualify — but they’re the same kind of people we are.”