Opportunity Zone Redevelopment Offering With a Targeted Average Cash Yield of 52%

CrowdStreet has just launched its latest real estate crowdfunding offering for an opportunity zone redevelopment in downtown Cincinnati with a target internal rate of return (IRR) of 19.7% and a targeted average cash yield of 52%. 

Project Overview: The sponsor is raising capital to redevelop the historic Textile Office Building into a 228-unit class A multifamily property, which will be called Textile Apartments. The completed project will include a rooftop terrace overlooking the Ohio River, the Paul Brown Stadium where the Bengals play and downtown Cincinnati; 2 floors of resort-like tenant amenity space; and street-level retail. 

The property has been awarded $5 million of Ohio Historic Tax Credits (HTCs) and will use Federal HTCs, which are a 20% credit of qualified rehabilitation costs. Together, the Ohio and Federal HTCs will generate approximately $11.3 million of tax credit equity.

The sponsor also intends to qualify as a Qualified Opportunity Fund (QOF). This structure provides investors with potential tax benefits by allowing the investment and deferral of capital gains tax followed by the exclusion of future capital gains tax created from the sale or exchange of an investment that is held within the QOF for 10 or more years.

Investment Highlights: The downtown Cincinnati submarket has remained strong through 2021, with robust demand and slowing development activity driving vacancy to record lows and rent growth to record highs. The average occupancy among the property’s comp set is 98%.

The sponsor also obtained a flat, 25-year, 52% property tax abatement that should significantly enhance cash flows to investors. This abatement goes into effect the year the building pulls its Certificate of Occupancy and will run for the following 25 years.

• Minimum investment: $25,000
• Target investor IRR: 19.7%
• Target average cash yield: 52%
• Target investment term: 10 years

View offering details on CrowdStreet

Deal Sponsor: The offering is being sponsored by The Bernstein Companies, which is one of the oldest commercial real estate firms in Washington, D.C. 

Since 1933, the company has developed, managed or financed over 3,000 apartment and condominium units, 2,000 hotel rooms and 5,000,000 square feet of commercial office space.

How To Invest: Accredited investors can register on the CrowdStreet platform to view more details on the Textile Apartments offering, review due diligence documents and make an offer to invest. 

Want To Be the First To Know About New Investment Opportunities? Gain access to the same investment offerings on which institutions and billionaire investors are earning 20% to 30% or higher annual returns.

While real estate crowdfunding is giving individual investors access to private deals that have historically been out of reach, many of the most lucrative deals are fully funded before the average investor ever has a chance to get involved.

Sign up here for free alerts to find out about new offerings before they go live.

Photo: Courtesy of CrowdStreet