3 Real Estate Investment Offerings This Week With Target Returns Between 8%-15%

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.

Asher Adams/Union Station Opportunity Zone

Asher Adams is an adaptive reuse of an existing 1908 train depot and concert venue in Salt Lake City, Utah, with the addition of a new eight-story, 225-key Marriott Autograph Collection hotel.

The property is located in a designated opportunity zone and the sponsor intends to qualify the fund as a qualified opportunity fund. This would allow investors to potentially defer and reduce capital gains taxes from gains realized within the previous six months by reinvesting those gains in this opportunity zone redevelopment. 

Investment Highlights: The sponsor expects completed delivery of the Asher Adams during the first quarter of 2024. Initial occupancy of 66.1% is projected in 2025, with the project being stabilized in year four of operations at 80% occupancy, a $275 average daily rate and a $220 RevPAR. 

The sponsors intend to hold the Asher Adams for the necessary 10-year holding period to qualify for the potential tax benefits associated with opportunity zones.

• Offering Amount: Up to $29 million
• Minimum Investment: $25,000
• Target Investor IRR: 15.3%
• Target Average Cash Yield: 7.9%
• Target Equity Multiple: 3x
• Target Investment Term: 10 years
• Offers Due: November 5, 2021

View offering details on CrowdStreet

Burnett River Citrus Orchards

AcreTrader’s newest offering is also the platform’s first international deal. The Burnett River Citrus Orchards consist of multiple citrus orchards surrounding the town of Gayndah in the North Burnett Region of Queensland, Australia. 

The orchards will total 862 acres with 324 producing acres of mandarins, lemons, grapefruit and oranges. The additional land can be further developed for citrus and other crops.

Investment Highlights: The orchards come with significant permanent irrigation water entitlements totaling 1,013 Megalitres and have direct access to relatively inexpensive river water from the Burnett River.

The sponsor and its affiliates currently operate over 100,000 acres of agricultural properties in Australia and have accumulated a significant amount of water entitlements as part of the Aqua Ceres Australia Water Fund.

• Offering Amount: $7 million
• Minimum Investment: $35,000
• Target Net Annual Return: 15.2%
• Target Average Cash Yield: 14.2%
• Estimated Investment Term: 10-12 years

The offering goes live at 2 p.m. EST on Thursday, Sept. 23. View offering details on AcreTrader.

1st Streit Office

1st Streit Office is a non-traded REIT offered by Streitwise that’s available to both accredited and non-accredited investors. The REIT currently owns two class A commercial properties, including a 290,000 square foot office park in Sunset Hills, MO that features the Panera Bread headquarters and a 142,000 square foot office and retail property in a suburb of Indianapolis, Indiana.

Investment Highlights: Streitwise has a target dividend yield of 8%-9%, which it has maintained since its inception in 2017. The REIT’s most recently announced dividend provides an annualized yield of 8.4%.

The current price of $10.16 per share is based on the REIT’s net asset value (NAV) and isn’t tied to the volatility of the stock market like the price of publicly traded REITs.

• Minimum Investment: 500 shares ($5,080)
• Annual Dividend Yield: 8.4%
• Investment Term: Share redemption at 100% of NAV after five years

View offering details on Streitwise

Photo: courtesy of CrowdStreet

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.