Yieldstreet: Dallas Multifamily Property Development

Crowdfunding investment platform Yieldstreet has announced the last call for investment in a multifamily development in Dallas.

The preferred equity investment will be in the development of a 336-unit Class A multifamily property in an area that has seen rapid population and job growth in recent years. Eight buildings will be constructed for housing in addition to a clubhouse, fitness center and an outdoor pool with a patio. 

Built into the investment is a principal protection buffer. Based on a third-party consulting firm’s valuation of the property at both the completion of construction and the projected time of sale, the value of the property must decrease by 29% and 35% for investors to lose their principal investment. This significant buffer between the cost and value ought to fend off any adverse market conditions between the construction and the future sale of the property.

The Dallas-Fort Worth region lately has seen significant gains in both population and economic activity. The region has added over 150 new corporate headquarters and has seen the expansion of existing employers in the last decade. Because of the rapid job growth, Dallas-Fort Worth has added the most multifamily units among major U.S. markets since 2010, and housing demand in the area is still surging. 

Construction of the multifamily property is 78% complete as of February, with the expected completion of the development expected in May. Monthly interest payments of approximately 3.6% will be made to investors with the remaining interest to accrue and compound and be paid out at the time of maturity. The projected sale of the development is expected to occur in May 2025. 

• Minimum investment: $15,000
• Target annual yield: 12.15%
• Target cash yield: 3.6%
• Target equity multiple: 1.3x
• Target investment term: 27 months

Yieldstreet is a private market investment firm that presents investors with a variety of asset-class opportunities, including real estate. Since the company’s founding in 2015, it has funded over $3 billion on the platform and paid out over $1.8 billion in principal and returns. Since 2015, the firm boasts a net annualized return rate of 9.7%, which compares favorably to the results of a traditional portfolio of stocks and bonds that has returned 6.5% during that same time frame. 

Get details on Yieldstreet offerings.

Photo courtesy of ImagesFromTexas