New Industrial Real Estate Development Offering With 17% Target IRR

CrowdStreet has launched a new offering on its real estate crowdfunding platform (view more offerings) for the development of DFW Port 45, a 567,516 square foot rear-load industrial project in Southeast Dallas with a 17% target internal rate of return (IRR).

The deal sponsor is raising up to $16.8 million from investors on the CrowdStreet platform to acquire the 37.3-acre site in Dallas, TX, and construct two rear-load industrial buildings. The sponsor anticipates having the project completed by December 2022 and selling the property in the third year at an estimated cap rate of 4.5% after leasing both buildings.

Investment Highlights: The Southeast Dallas industrial submarket has seen rent growth of just under 10% in the past 12 months with net absorption of approximately 4.9 million square feet (SF) over the same period. This is a major indication of the demand for industrial real estate in the area.

Significant regional commitments have been made by Amazon AMZN for 1,044,647 SF, Lowe’s LOW for 810,900 SF, Mars Petcare for 61,806 SF, Georgia Pacific for 999,728 SF and Home Depot HD for 532,957 SF.

The project’s central location and proximity to the DFW International Airport puts almost anywhere in the U.S. within a four-hour flight, making it a national leader and strategic location for distribution and logistics capabilities.

• Minimum investment: $25,000
• Target IRR: 17%
• Target equity multiple: 1.6x
• Target investment term: 3 years

View more details for this offering on CrowdStreet

Deal Sponsor: The DFW Port 45 opportunity is being offered by Griffin Partners, a full-service real estate operating company based out of Houston, Texas. The company has made 47 consecutive profitable investments with weighted average returns, net of all fees, to investors of 14.5% IRR and a 2.2x equity multiple.

DFW Port 45 will be the sponsor’s eighth deal funded through CrowdStreet.

Glossary of Terms Used in This Article

Cap Rate: The rate of return on a real estate investment based on the income the property is expected to generate after operating expenses.

Equity Multiple: The total return achieved on an investment, calculated by dividing the total dollars received by the total dollars invested.

Internal Rate of Return (IRR): The average annual return over the lifetime of an investment.

Net Absorption: The number of square feet that became physically occupied, minus the number of square feet that became physically vacant during a specific period.

Photo: Courtesy of CrowdStreet