Veteran real estate broker and developer Donnie Jarreau is restructuring his commercial real estate company to include new business lines and services, new partners and a new name.
The newly rebranded company, Jarreau Real Estate, will comprise three distinct entities under a single umbrella.
Jarreau Real Estate is the commercial brokerage arm of the company that will be headed by brokers Alex Knight and Troy Daigle, who have worked with Jarreau for more than a decade. JRE Property Management is a partnership between Jarreau and Josh Campbell, and will manage the organization’s in-house investments. Though Jarreau has been doing property management for decades, JRE Property Management will also pursue clients for third-party management contracts.
The third arm of the company brings a relatively new concept to the market. JRE Private Equity Group is an investment platform that will be open to qualified investors and enable them to buy into properties that Jarreau and his partner in the venture, longtime broker and entrepreneur Trey Williams, have identified as attractive investment vehicles.
“It’s a way for people to get into commercial real estate without having to spend a huge sum of money and without having to manage the property,” says Williams, who is well known locally for his restaurant companies including Southfin Southern Poke, which he co-owns but no longer runs on a daily basis. “It’s an asset class in and of itself.”
Accredited investors are generally those that earn more than $200,000 a year and have a net worth of at least $1 million, not including their personal residence, though those parameters are not set in stone.
Unlike most fund-type investment platforms, no upfront commitment is required and there is no obligation to invest.
“JRE simply provides accredited investors with the opportunity,” says Williams, who first became interested in private equity real estate several years ago and began researching how it is done in other markets.
Williams hopes to grow a pool of around 350 investors and bring to them properties from throughout a region roughly extending from east of Houston to the Florida Panhandle and north to Shreveport, Monroe and Jackson, Mississippi.
Target properties will typically be those that Williams describes as “solid with a lower-risk profile.”
“We think it’s a tremendous opportunity because most people who are doing what we’re doing are into really risky deals,” Williams says. “We’re looking for properties that deliver stable returns. There are not a lot of people doing that because there is not enough money in it unless you do a lot of volume.”
Jarreau had planned to unveil the rebrand in mid-March, but the pandemic delayed the announcement until today. For now, the group will continue to work from Jarreau’s offices in the Southdowns Shopping Center.
Later this year, however, the company will move to a new 5,000-square-foot building Jarreau is developing on Perkins Road and Pecue Lane.