Onic Palandjian, Partner, Group RMC
A Family Office Playbook for Real Estate
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Guest: Onic Palandjian, Partner, Group RMC
The Case for Patient Capital in a Volatile Market
Family offices have quietly become some of the most influential capital allocators in commercial real estate. Their ability to invest without fundraising cycles, withstand liquidity droughts, and think across decades rather than quarters gives them an edge that traditional institutions struggle to match.
In my conversation with Onic Palandjian, partner at Group RMK, he outlines why that long-duration mindset matters now more than ever. His firm’s growth from a $500 million proprietary portfolio to $2.5 billion in assets was not driven by financial engineering. It was driven by a disciplined refusal to chase themes, a commitment to buying only when pricing resets, and an unapologetically conservative approach to risk.
The result is a contrarian platform with a simple but demanding philosophy: you only make money when you buy. Everything that follows is execution.
A Multi-Cycle Playbook Built on Loss Aversion
Palandjian describes Group RMK’s starting point succinctly: buy when others cannot or will not. The firm was born during the savings and loan crisis. While institutions retreated, the founding families amassed “3000 doors…for literally $0.20 on the dollar,” ultimately selling the entire portfolio. That playbook never changed.
“We try to minimize all kinds of risks,” Palandjian says. “If there is a couple of if’s…we don’t do the project.” This is not opportunism disguised as conviction. It is structured loss aversion – an unwillingness to take exposure to leasing, development, or operating risk unless the basis is so attractive it protects capital even under stress.
That orientation shapes every decision: low leverage, long hold periods, and a consistent willingness to sit on assets rather than sell into weak conditions. Even in office – one of the least loved sectors in the U.S. – the approach remains the same. When Covid hit, Group RMK doubled down. “We bought amazing assets at ridiculous prices,” he explains, but avoided near empty buildings that required heavy CapEx. The strategy was simple: buy existing income at fractions of prior valuations and let time and basis do the work.
For family offices worried about principal protection, this mindset resonates.
Ground Leases: Income, Seniority, and Inflation Protection
The most distinctive part of Group RMK’s current strategy is its push into long-term ground leases – a segment Palandjian calls “real estate royalties.” The economics combine high current yield with exceptional seniority in the capital stack. And in a capital-constrained market, developers value the ability to unlock equity by selling land and leasing it back for 99 years.
The model offers several structural advantages:
1. Seniority over the lender.
“You’re the highest on the capital structure…even to the bank, except the taxing authority.” If a developer falters, the lender typically steps in to protect its collateral by paying the ground rent.
2. Inflation-adjusted income.
“These ground leases… go up with inflation.” The escalators are contractual and built into the 99-year term.
3. A hedge against development failure.
If a developer defaults and the bank refuses to step in, “you end up a proud owner of the building that’s sitting on your land.” Even a half-finished project typically exceeds the land value.
4. Zero operating exposure.
“We do not take development risk. We do not participate in the risk or the reward that comes from the development part.” The operator, not the landholder, manages the CapEx, tenant improvement expense, leasing commission spend, and execution risk.
Today’s market makes this niche unusually attractive. Developers who used to borrow at 70 percent LTC struggle to get more than 40–45 percent from lenders. A ground lease transaction fills that gap without mezzanine rates and without losing the project’s upside.
For a family office seeking predictable, long-duration income that outruns inflation, few structures offer a cleaner fit.
Where Value Is Emerging: Distress and Zoning
Group RMK’s opportunism extends beyond ground leases. Palandjian points to two adjacent themes:
Deep-value office acquisitions.
The firm owns the largest office complex between Denver and Chicago via Corporate Woods in Kansas City. Acquired at steep discounts when sentiment was weakest, the site also includes large tracts of land that were not part of the underwriting. As local authorities push to alleviate housing shortages, rezoning creates additional optionality. Hamilton Crossing in Indiana – a 44-acre project recently announced for redevelopment – follows the same logic.
Urban-edge land assemblies.
From Ottawa’s suburban expansion to Brooklyn industrial conversions, Group RMK looks for locations where multiple uses can be unlocked as cities grow. Some of these opportunities originate through long-standing family relationships, further reinforcing the advantages of private capital.
The Rise of the Family Office as Agile Capital
One of the strongest themes in the discussion is the emergence of family offices as the “right-sized” investors for today’s environment. They sit in a sweet spot: small enough to move quickly on $20–$50 million deals, but large enough to operate countercyclically when institutional liquidity withdraws.
“Families like to work with other families,” Palandjian notes. Trust, transparency, and direct allocation to individual deals matter more than brand-name institutional wrappers. Equally important: Group RMK does not take traditional fees. Instead, the firm invests its own capital and receives subordinate shares in lieu of acquisition or asset management fees. “If money is not made in the project…these shares are worthless.”
This economic structure is rare, and it creates a deep alignment with investors who must answer to generational wealth stewards rather than quarterly reporting cycles.
Risks, Liquidity Constraints, and the 2026 Outlook
Looking ahead, Palandjian identifies two constraints shaping family office behavior:
Liquidity scarcity.
Because IPO and M&A markets have slowed, VC-backed exits are delayed. “Liquidity is scarce…funds delay getting money back to them.” This makes predictable real estate income more valuable.
Interest rate pressure.
Borrowing costs remain a bottleneck. But high-rate environments open opportunities: “We can acquire now when interest rates are high and others have limited options.” If rates normalize, today’s 6-caps on ground leases will not last.
The opportunity, he argues, lies in distress. Many owners “over levered, paid expensive prices,” and now face refinancing headwinds. For patient buyers with equity and discipline, the next 12–24 months may offer the most attractive pricing in a decade.
A Disciplined Blueprint for Multi-Cycle Investing
Group RMK’s message is straightforward:
• Buy only when the basis is right.
• Take as little operating risk as possible.
• Use low leverage to extend holding power.
• Favor predictable income over speculative upside.
• Let macro stress create entry points others cannot pursue.
In a market where headlines still focus on dislocation, the more important story may be the quiet return of disciplined capital. And for family offices committed to protecting principal while capturing long-term appreciation, the path is becoming clearer: avoid noise, avoid leverage, avoid heroics.
Right now, patience isn’t merely a virtue. It is an advantage.
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