Strategic Diversification: The Role of Alternative Assets in Real Estate and Commercial Property Finance

A commercial property finance perspective on the next frontier of property investment.

When people think of investing in real estate, the first things that usually come to mind are residential properties or commercial office spaces. But the world of real estate investment is much broader—and often more interesting—when you explore the realm of alternative assets.

Defining Alternative Assets

In finance, "alternative assets" refer to investments that fall outside the traditional categories of stocks, bonds, or cash. In the real estate world, alternative real estate assets are property types that don’t fall into the typical "core" categories like residential, office, or retail.

These alternative assets can include:

• Industrial real estate – warehouses, logistics hubs, manufacturing facilities

• Self-storage facilities

• Data centres

• Student accommodation

• Aged care and healthcare facilities

• Build-to-rent developments

• Caravan parks and manufactured housing estates

• Agricultural land and farmland

• Specialised use assets – such as service stations and cold storage facilities

Over the coming weeks, we’ll be publishing a series of short blog posts that take a closer look at each of these asset types—exploring the opportunities, challenges, financing considerations, and key market trends relevant to each. Whether you're an investor, developer, or advisor, this series will give you practical insights to navigate the alternative real estate space with confidence.

Self-storage facilities are part of the growing trend of investing in alternative assets.

Why Investors Are Looking at Alternative Real Estate

Over the past decade, alternative assets have gained traction among institutional investors, family offices, and private syndicates. Why? Because these assets often offer:

• Stable cash flows – especially those with long leases or government-backed tenants

• Counter-cyclical performance – some perform well even in economic downturns (e.g., self-storage or healthcare)

• Diversification benefits – reducing reliance on traditional sectors like office or retail

• Undervalued opportunities – some assets fly under the radar and can offer higher yields or repositioning upside

Trends Driving Growth in Alternatives

Several structural trends are fueling demand for alternative real estate:

• E-commerce growth is boosting demand for logistics and warehouse space

• Ageing populations are increasing demand for aged care and healthcare infrastructure

• Urbanisation and housing affordability issues are driving interest in build-to-rent and manufactured housing

• Digitalisation is creating demand for data centres and telecom infrastructure

Digitalisation is creating demand for data centres and telecom infrastructure.

Risks to Consider

As with any investment, alternative assets come with their own risks. These may include:

• Limited transaction data or benchmarks

• Asset-specific risks (e.g., reliance on a single tenant or operator)

• Regulatory or planning constraints

• Liquidity – some of these asset types may take longer to sell or finance

Final Thoughts

Alternative real estate assets can be a powerful way to diversify a portfolio, tap into long-term trends, and uncover new opportunities. But they also require careful due diligence, sector-specific knowledge, and the right finance strategy.

At CapStack, we help property investors and developers access tailored finance solutions for both traditional and alternative assets. Whether you're acquiring a logistics hub, developing a data centre, or repositioning an aged care facility, we’re here to help structure the right funding solution.

Absolutely—here’s an extended call to action that aligns with your brand tone and speaks directly to how CapStack supports investors and developers in sourcing and structuring commercial property finance, particularly for alternative real estate assets:

How CapStack Can Help: Commercial Property Finance

At CapStack, we specialise in helping property investors and developers secure and structure commercial property finance that’s tailored to their specific goals—including those targeting alternative assets. Whether you're acquiring a self-storage facility, developing a logistics hub, repositioning a healthcare asset, or venturing into emerging sectors like build-to-rent or data centres, our team brings deep market knowledge and strong lender relationships to the table.

We go beyond simply “getting the deal done.” We work alongside you to:

• Understand the unique characteristics and cash flow profile of your project

• Identify the right lenders or funding partners—bank and non-bank

• Structure deals that align with your business plan, risk appetite, and return expectations

• Navigate challenges such as zoning, valuation, or asset-specific constraints

• Provide clear, proactive advice throughout the entire financing journey

Whether you're expanding your portfolio or unlocking value in a niche asset class, we’re here to ensure your finance solution supports—not limits—your strategy.

Let’s talk about how we can help you fund your next move.