Accepting $30,000 - $250,000 investments
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Accepting $30,000 - $250,000 investments
Invest in a $7.1M preferred equity investment for the development of a 368-unit garden-style multi-family complex and five retail pads in Riverview, Florida. Riverview is a suburb within the Tampa Bay metropolitan area and the South East Tampa Submarket. Riverview is approximately 15 miles southeast of Downtown Tampa and is part of a recent wave of development surrounding the city.
The project is being led by the same experienced Florida-based developer responsible for Florida Multi-Family Development Preferred Equity, Florida Multi-Family Development Preferred Equity III and North Florida Pre-Development Refinancing, which were previously offered to investors on Yieldstreet. All of these offerings continue to perform in line with expectations.
All permits for the development are in place and site preparation has begun. One of the retail parcels is under a purchase and sale agreement with a gross sale price of $2.0M. The purchaser is currently in the due diligence period, and closing is expected in 1Q21. If the sale closes, the net proceeds would be used to pay down the senior construction loan, or be held in an account for use to pay down the senior loan if the senior loan has not been drawn.
The offering has a remaining initial maturity of 24months with the option for one 12-month extension. The offering is expected to pay investors a 9.75% target annualized return that will accrue and compound monthly and will be paid along principal at maturity.
• Interest is expected to accrue and compound rather than be distributed monthly. Please refer to the “Term and Cash Flow” section for more details.
• A recent update on this offering is available here
Gross target yield
Yieldstreet management fee
Target yield to investors
Sept 2, 2023
Sept 2, 2024
First year expense
Annual flat expense
Please refer to the Investment Memorandum for more details about this offering.
Where does Yieldstreet lie in terms of priority?
The $7.1M Yieldstreet preferred equity investment is senior to the $14.1M in equity contributed by the developer and its investor syndicate. Yieldstreet’s position in the capital stack is subordinate to $47.5M in senior secured debt from a publicly listed investment grade rated bank.
Please see here for additional educational information on the preferred equity product type.
Term and Cash Flow
How do I get paid?
The preferred equity investment has 31 months remaining with the option for one 12-month extension. Investor returns are expected to accrue and compound monthly at an annualized target rate of 9.75% over the offering’s full term. Principal and accrued return are expected to be repaid with proceeds from the sale or refinancing of the development.
What are the assets underlying the transaction?
The development is a 33.6-acre parcel of land located in Riverview, which is a suburban location within the Tampa Bay metropolitan area and the South East Tampa Submarket. Riverview is approximately 15 miles southeast of Downtown Tampa, and is part of a recent wave of development surrounding the city. The site has frontage on major thoroughfares in the region, connecting the property to Downtown Tampa, Brandon (a regional office hub), and Tampa International Airport.
The developer expects the first unit to be completed by March 2022 and construction to be completed by July 2022, with an additional 11-month lease-up period to stabilization. The site development is approved, and site preparation has begun.
Other resources in addition to the Investment Memorandum
This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS REL VI LLC ("Issuer"). The Offering is made only by means of the Investment Memorandum relating to the Offering (the "Offering Document"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the Offering Document, or as incorporated in the Offering Document by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the Offering Document or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Document, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Document in its entirety prior to investing in the securities.
Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.