Enclave Bets $200M on Heartland Real Estate and Supply Chain Backbone

FARGO, N.D. – December 02, 2025 – In a strategic move signaling strong confidence in America's heartland, Fargo-based real estate firm Enclave has launched the Real IncomePlus Fund (RIF), a $200 million open-ended investment vehicle. The fund targets two of the most resilient asset classes in today's market: stabilized multifamily properties in the Midwest and Mountain West, and critically, industrial assets across the United States that form the physical backbone of the nation's supply chain.

The launch comes as investors, weary of coastal market volatility and searching for yield, are increasingly turning their attention to opportunities offering stability, tax efficiency, and predictable income. Enclave’s RIF is structured to meet this demand head-on, providing broader access to institutional-quality real estate assets that have historically been the domain of large-scale players.

The Search for Yield and Stability

In an economic climate defined by uncertainty, the demand for stable, income-generating investments has intensified. Enclave’s new fund is a direct response to this trend. By structuring RIF as an open-ended fund, the firm offers a degree of flexibility and liquidity not typically found in traditional closed-end real estate ventures. This structure allows for an indefinite fund life and the ability to continuously raise capital, enabling managers to acquire and hold assets for the long term without the pressure of a forced liquidation timeline.

This long-term perspective is crucial for the fund's strategy, which is built on what the firm describes as conservative underwriting and disciplined acquisition. The focus is on stabilized, cash-flowing properties rather than speculative development projects, a profile that appeals to investors prioritizing wealth preservation and regular income streams.

“We are deeply committed to understanding our investors’ objectives and designing structures that support them,” said Enclave Co-Founder and Chief Executive Officer Ben Meland in the announcement. “RIF is intentionally built on conservative underwriting, disciplined acquisition, and a desire to deliver the stability and efficiency investors seek. Its structure enables tax deferral, consolidated reporting, and the simplicity many investors have requested.”

The tax efficiency mentioned by Meland is a significant draw. Open-ended real estate funds can offer pathways for tax deferral, a compelling benefit for high-net-worth individuals and family offices looking to optimize their portfolios. The consolidated reporting simplifies the administrative burden, another key feature for investors who have requested a more streamlined process.

Tapping into the Midwest's Surging Real Estate Market

While headlines have long been dominated by the boom-and-bust cycles of coastal and Sun Belt cities, a quieter but more resilient story has been unfolding in the Midwest. Enclave's decision to anchor the fund's multifamily strategy in the Midwest and Mountain West is backed by compelling market data.

According to a September 2025 report from CoStar Analytics, the Midwest is now leading the nation in year-over-year multifamily rent growth. Cities like Cleveland, Chicago, and Kansas City are posting gains that outpace their coastal counterparts. This performance is not an anomaly but the result of solid economic fundamentals: steady demand, relative affordability, and a disciplined construction pipeline. Unlike superheated markets that face a glut of new units, the Midwest has seen more constrained supply, allowing property owners to maintain high occupancy and healthy rent growth.

This dynamic is creating a new definition of "institutional-quality" real estate. For years, the term was synonymous with Class A towers in primary markets like New York or San Francisco. Today, savvy investors and sponsors are expanding that definition to include well-located, high-performing assets in secondary and tertiary markets. These regions offer lower entry costs and higher capitalization rates, providing a more attractive risk-adjusted return. By focusing on these durable markets, RIF is positioned to capitalize on a trend that favors fundamental value over speculative hype.

Industrial Assets: The Unseen Engine of E-Commerce

For readers of this column, the most significant component of Enclave's new fund is its focus on industrial assets. This isn't just about warehouses; it's an investment in the critical infrastructure that powers modern commerce. From last-mile delivery hubs to advanced manufacturing facilities, these properties are the essential nodes in a complex and rapidly evolving global supply chain.

The industrial real estate market has demonstrated remarkable resilience. While the construction of massive, million-square-foot distribution centers has slowed, the market for smaller facilities under 100,000 square feet is booming, with construction up 16% year-over-year in 2025. These smaller-bay properties are vital for urban logistics and e-commerce fulfillment, enabling companies to store goods closer to end consumers and shorten delivery times. Vacancy rates for these spaces remain exceptionally low, often hovering between 3% and 4%, which continues to put upward pressure on lease rates.

RIF's strategy involves disciplined market selection, rigorous tenant evaluation, and strategically structured long-term leases in multi-tenant properties. This approach mitigates risk by diversifying tenancy and ensures a steady income stream. By investing in these assets, the fund is effectively placing a bet on the continued growth of e-commerce, onshoring of manufacturing, and the perpetual need for more efficient and resilient supply chains.

An Integrated Platform Built for Growth

Enclave's ability to launch a fund of this scale is rooted in its integrated business model. The firm isn't merely an investment manager; it combines development, construction, and property management under one roof. This unified platform provides a distinct competitive advantage, allowing for greater control over project execution, cost, and quality from acquisition to stabilization.

This operational discipline has fueled the company's impressive growth since its founding in 2011, culminating in a portfolio of over 150 completed projects and more than $1.75 billion in assets under management. The firm's recognition as Developer of the Year by industry peers in 2025 underscores its standing in the market, particularly its impact in the Twin Cities.

To spearhead the new fund's investment activities, Enclave has expanded its team, bringing on Dan Ruehl as Senior Acquisitions Manager. With over 14 years of experience and more than $550 million in closed real estate transactions, Ruehl brings deep expertise in both industrial and multifamily assets. His background in sourcing, underwriting, and capital deployment will be pivotal as RIF begins to deploy its $200 million in capital. This strategic expansion of talent and capital demonstrates Enclave's commitment to scaling its investment platform and capitalizing on the market dynamics it has identified. The firm's focus on building a strong internal culture, evidenced by seven consecutive years on a '50 Best Place to Work' list, provides the foundation for this sustained execution.

The launch of the Real IncomePlus Fund marks a significant milestone for Enclave, but it also reflects a broader shift in the investment landscape. As capital seeks refuge in stability and tangible value, the unassuming but essential assets of America's industrial and residential heartland are moving into the spotlight.