YieldStreet: Greenville Distribution Center Equity Offering

The crowdfunding investment platform Yieldstreet has announced the last call on an equity offering for a distribution center in Greenville, South Carolina.

Investors receive equity ownership in a to-be-built Class A, single-tenant, 560,000-square-foot distribution center. Industrial real estate investment continues to be one of the top-performing assets in real estate. At the conclusion of 2022, industrial real estate marked its twelfth consecutive year of positive net absorption, low vacancy rates and positive rent growth. 

This Class-A industrial building, set to begin construction soon, is expected to be completed by June 2024, fully leased by December 2024 and sold at the end of the holding period in December 2025. The sponsors of the project, Pearlmark, are waiting to be awarded tax-advantaged status from the state prior to the construction commencing. The tax incentive program could lower the tax expense for the future tenant by as much as 45%, offering inherent value for investors. 

The location of the industrial development is optimal. The site is one of the last remaining developable sites of this scale in the submarket and is near I-85. The I-85 corridor is one of the largest supply chain and distribution corridors in the United States. Access to I-85 permits a tenant to reach over 100 million people in a one-day drive time, which will help the sponsors attract tenancy. 

According to CoStar, Class-A facilities such as this Greenville facility have a vacancy rate of 1.5% within the submarket. Rent growth has seen similar positive results in recent years, with increases of 10% per year over the past three years. The rate of year-over-year rent growth is at 11% and is expected to increase by 5% per year over the next three years. 

Pearlmark brings extensive experience in managing large-scale industrial developments such as this Greenville project. Since the group’s inception, Pearlmark has invested in 572 equity and debt investments across the country, representing $13.9 billion of gross investment value. Demonstrating its level of commitment to the project, Pearlmark is contributing approximately $9 million to the development. 

• Minimum investment: $25,000
• Target annual yield: 14% to 16%
• Target equity multiple: 1.3 to 1.5x
• Target investment term: 30 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, the platform has funded over $3.2 billion and paid out over $1.8 billion in principal and returns. Since 2015, the firm boasts a net annualized return rate of 12.89%, which compares favorably to the results of a traditional portfolio of stocks and bonds that has returned 6.5% during the same timeframe. 

Get details on Yieldstreet offerings.