The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Crowdfunding has opened up real estate investing to passive investors who don’t want to invest the time and energy needed to manage an investment property or put up a large amount of capital to buy their own property.
We’ve looked through the real estate crowdfunding offerings available this week to provide you with the top opportunities to consider adding to your portfolio.
Commercial Real Estate
The real estate investment platform CrowdStreet has two new offerings going live this week for accredited investors.
Midlothian Industrial Center: The offering is for an investment in the development of a two-building industrial center in Midlothian, Texas, that will span approximately 341,000 square feet.
The project site is located across U.S. 69 from RailPort Business Park, a 1,700-acre business park that is home to the 1.35-million-square-foot Target TGT Distribution Center and Google’s GOOG $600-million data center.
Investing begins on Aug. 24, 2021.
- Minimum Investment: $25,000
- Target IRR: 19%
- Target Average Cash Yield: 4.3%
- Target Equity Multiple: 1.6X
- Target Investment Period: Three years
The offering is being sponsored by Provident Realty Advisors, which currently has $1.9 billion in assets under management, including its six prior offerings on CrowdStreet. All of the company’s prior CrowdStreet offerings that are out of development are either performing as planned or overperforming.
View offering details on CrowdStreet
Institutional Access GP Fund: The fund’s primary focus will be to invest in general partner positions in ground-up multifamily development as well as value-add multifamily opportunities alongside institutional investors. The fund is available to qualified purchasers only.
Investing begins on Aug. 23, 2021
- Minimum Investment: $50,000
- Target IRR: 23%
- Target Investment Period: Two years plus one six-month extension option
The offering is being sponsored by Cypress Equity Investments, LLC, which has invested in a total of 119 projects and has a portfolio and pipeline of over 13,000 multifamily units.
View fund offering details on CrowdStreet
Farmland
Two of the top real estate crowdfunding platforms focused on Farmland, FarmTogether and AcreTrader, have new offerings available this week.
Daybreak Organic Pear and Apple Orchard: This 81-acre farm is located along the Columbia River in eastern Washington and is managed by one of the nation’s top fruit growers.
Investing begins on Aug. 23, 2021
- Minimum Investment: $15,000
- Target Net IRR: 11.7%
- Target Net Cash Yield: 13.8%
- Target Net Equity Multiple: 2.5x
- Target Investment Term: 10 years
The offering is already 49% subscribed from repeat investors on the FarmTogether platform, but the company is opening up a 48-hour window reserved only for new investors. This window opens on Monday, August 23, 2021.
Cash Farm: The 570-acre rice and soybean farm is located in Mississippi County, Arkansas and gains its namesake from the nearby boyhood home of country music legend, Johnny Cash.
Investing begins on Aug. 23, 2021
- Minimum Investment: $19,950
- Target Net Annual Return: 8.1%
- Target Gross Cash Yield: 3.2%
- Target Investment Term: Five to 10 years
The current tenant has signed a new three-year lease that will keep them on the farm at a rental rate of $180 per acre. The property will be managed by Acretrader Management, LLC, an affiliate of AcreTrader, Inc.
Real Estate Notes
The real estate investment platform Groundfloor allows non-accredited investors to invest in high-yield, short-term real estate loans. The company typically releases a new batch of loans every Wednesday.
- Minimum Investment: $10
- Target Return: 6% to 15%
- Target Investment Term: Six to 12 months
Loans on Groundfloor are made to real estate investors and builders for the renovation or construction of residential properties. The loans are then paid back once the project is complete and the properties are either sold or refinanced.
View current offerings on Groundfloor
Photo by Nastuh Abootalebi on Unsplash.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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