The Evolution from Project-Driven to Product-Driven Real Estate: A New Investment Paradigm

Written by:

Rudi Davis

Date:

15 Sep 2025

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Real estate veteran Cameron Gunter says the industry’s next evolution requires rethinking how deals are structured and packaged for institutional investors, marking a fundamental shift from opportunistic development to scalable investment products.

“We need to be more product-driven, right as an investment firm versus development firm. It really needs to be investment driven,” says Gunter, Executive Chairman of PEG Companies, reflecting on the company’s strategic pivot after two decades of project-based growth.

The Challenge of Scale

According to Gunter, while an entrepreneurial, deal-by-deal approach drove PEG’s initial success, that model hits natural limitations when pursuing institutional capital at scale. “I’m a deal guy, and I like deals,” he acknowledges. “But as you grow, you’ve got to evolve to be more disciplined in that investment.”

Gunter says this realization prompted significant changes in how PEG evaluates opportunities. “We put an investment committee together, and we set up strategies of what we could do on the development side, what we could do on acquisition side,” he explains. However, he notes that creating true scalability required an even deeper transformation.

Finding the Market Gap

Rather than trying to compete head-on with industry giants, Gunter says PEG’s evolution focuses on identifying and filling specific market gaps. “We’re not just going to be another Blackstone Carlisle. But there’s something that we built, the base that we build at PEG, that is special,” he argues. “Let’s figure out where that is special and where the gap in the market is, and let’s build a product around it.”

This approach, Gunter suggests, allows firms to maintain their unique value proposition while creating the kind of standardized investment parameters institutional investors require. “Whether it be in the multifamily space, whether it be in the hospitality space, how can we scale that business and create a box or parameters that institutional investors really think that’s a product they can invest in?”

The Human Capital Factor

Gunter acknowledges that this transition demands different skill sets than traditional development. “I probably should have seen it five years ago and hired the right people sooner,” he reflects. “If I were to do it again, I would make sure I’d spend the money today on the right people in the right seats to make us successful.”

Specifically, Gunter suggests bringing in professionals with institutional fund experience earlier. “I should have hired people with experience in those areas, maybe a junior guy, or maybe it was a Senior Associate VP level from a bigger fund,” he says. “They’ve been to an organization that has put processes and discipline in place, versus we tried to build organically.”

Looking Forward

As PEG moves forward under new leadership, Gunter sees the product-driven approach as essential for firms looking to scale beyond high-net-worth and family office capital. “Raising capital from high net worth and family offices that have a longer-term perspective is much different than raising institutional capital,” he observes.

The transition represents what Gunter believes is a necessary evolution for development firms seeking institutional partnerships. While maintaining creative deal-making capabilities remains important, he argues that packaging those opportunities into scalable, repeatable investment products is the key to accessing larger pools of capital.