Last Call On Three Private Equity Real Estate Investment Offerings

The real estate crowdfunding platform CrowdStreet has announced the last call for three private equity real estate investment offerings on its marketplace. The three offerings are available to accredited investors with a minimum investment of $25,000. 

10 Federal Self-Storage 4

The 10 Federal storage facility portfolio represents the fourth self-storage portfolio offered through CrowdStreet where the sponsor and the platform are attempting to replicate the success of the previous three. The portfolio intends to acquire between 20 and 30 self-storage facilities in growing markets. The group will focus North Carolina, South Carolina, Georgia, Virginia, Tennessee, Florida and Texas.

The 10 Federal acquisition strategy entails seeking out distressed deals — storage facilities that are uncompleted, have no in-place leases or prestabilized occupancy or that are drowning in debt. Once the properties are acquired, the plan for optimal capital appreciation involves building, developing or expanding self-storage facilities. The goal is to improve and integrate operations, hold onto the facilities through the targeted investment period and exit the investment upon receiving favorable terms. 

Considering 71% of all self-storage facilities are operated by individual owners who typically only own and operate one to two facilities, sponsor 10 Federal has the advantage of streamlined processes built to scale. Because of proprietary technologies developed in-house, 10 Federal has an advantage that automates the customer experience and reduces costs because the facilities are unmanned. Customers can use the online portal to check into the facilities and pay their bills, and an artificial intelligence (AI) chatbot is available for customer support.

The minimum investment for the Federal 10 Self-Storage 4 portfolio is $25,000.

CrowdStreet REIT (C-REIT)

The CrowdStreet real estate investment trust (REIT), or C-REIT, provides investors access to a curated portfolio of over 20 of CrowdStreet advisers' favorite growth-oriented commercial real estate projects through a single investment.

CrowdStreet has two main objectives for the portfolio: generating capital appreciation and investing in direct value-add and opportunistic equity investments in private commercial real estate. The strategy involves targeting projects with attractive risk-adjusted returns spread across a range of sponsors, asset types and major cities to reduce inherent risk.

The portfolio’s properties range from multifamily housing, industrial and office space and retail to life-science-related industries, healthcare facilities, storage centers. Each asset is selected after CrowdStreet sifts through an array of proposed investments. 

CrowdStreet’s advisers seek projects supported by attractive demographic and social trends that have long-term demand. This includes markets with above-average job and population growth — two major factors driving long-term commercial real estate demand.

Assembly Square Gateway

The Assembly Square Gateway offering is an equity investment for the acquisition and entitlement of a 13-plus-acre mixed-use development in Sommerville, Massachusetts, just north of downtown Boston.

Offering sponsor Cabot, Cabot & Forbes envisions 1.16 million gross square feet (GSF) of over 750 multifamily units, 118,670 GSF of ground-floor retail and a 155,000 GSF Home Depot store. The project will span three blocks. Block one will consist of civic, retail and residential space, block two will contain life-science and retail space, and block three will host a relocated Home Depot store, retail and residential space as well as a 465-space parking garage.

The development is just north of downtown Boston, 6 miles from Logan International Airport and near Boston’s public transit system. Sommerville’s Assembly Square neighborhood is surrounded by new development in the world’s leading life-sciences market. 

Assembly Square offers a live-work-play environment featuring more than 50 national brands and unique shops, 26 restaurants, five fitness studios, six entertainment destinations, over 1,000 multifamily units, two hotels and more than 1 million square feet of office space. The influx of industry in combination with above-average economic conditions makes the Assembly Row neighborhood the type of attractive market that CrowdStreet seeks to invest in.

CrowdStreet has six live offerings on its platform with three additional investments going live within the next week. 

Photos courtesy of CrowdStreet