Accepting $15,000 - $500,000 investments
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Accepting $15,000 - $500,000 investments
Invest in an equity ownership of three multi-family buildings that consist of 664 rental units with an average occupancy rate of over 95%. The location of each of the properties is expected to benefit from strong demographics, employment fundamentals and favourable supply-demand dynamics. As a result, each property is expected to provide investors with stable, current cash returns generated by rents and the opportunity for long-term capital appreciation.
According to CoStar reports and comparisons of similar properties recently sold, each property within the portfolio was acquired for below market price. The sponsor intends to perform light renovations to each of the buildings and raise rents closer to the market average. Following completion of the renovations, the properties will offer quality and competitively priced rentals to residents in the locations relative to the newer constructions available.
The offering is a co-investment opportunity sponsored by Harbor Group International (HGI), a global real estate investment and management firm with $13.5B in real estate assets under management. The Real Estate Opportunity Fund has made an investment in a fund managed by HGI, and such fund will also have an allocation to this portfolio of multi-family buildings.
The offering is expected to provide investors a targeted annualized return of 12-13%, with an annualized ~4.25% being distributed quarterly as current income. The balance of the returns are expected to be achieved via appreciation of the property at the time of sale or refinance. Since this is an equity investment, there is potential for returns to be above or below the target range.
• This offering is not available to pension plans, defined benefit plans, defined contribution plans, retirement plans, IRAs, 401(k) and 403(b) funds, and funds comprised of these plans and funds.
Please refer to the Investment Memorandum in the Documents section for more details about this offering.
Where does Yieldstreet lie in terms of priority?
Yieldstreet’s $1.8M equity position is in equal position with other equity holders in the portfolio, including the Real Estate Opportunity Fund which was also offered to investors on the Yieldstreet platform. The equity position is junior to the ~$118M senior debt associated with the portfolio. The senior debt has been provided by US-based banks, a government-sponsored enterprise, and a private lender.
How do I get paid?
Over the life of the investment, investors are expected to receive a target net annualized return of 12 - 13%, net of Yieldstreet’s management fee, commitment fee and fees earned by the sponsor as further described in the Investment Memorandum. Investors are expected to receive cash flows from two sources: ~4.25% of annualized income from property rents, which is expected to be paid quarterly, and the balance of the returns are expected to be achieved via appreciation at the time of sale or refinancing of the property.
What is the collateral underlying the transaction?
The portfolio consists of three multi-family assets that toal 664 units and have an average occupancy of 95.2%.
Olive Ridge Apartments are located at 2261 Valley Blvd, Pomona, CA 91768. Of the 220 units, there are 28 Studio units, 152 1BD/1BA units, and 40 2BD/1BA units. The sponsor plans to spend $1.9M to upgrade the interiors of 43 units and the amenity space, amongst other items. The sponsor expects to renovate the units on a rolling basis, averaging 1 unit per month. Renovation work is expected to commence in approximately 3 months and take about 43 months to complete.
The Henry apartments are located at 1 Crystal Hill Dr, Pomona, NY 10970. Of the 169 units, there are 16 1BD/1BA units, 16 1BD/1.5BA units, 4 1BD/2BA units, 86 2BD/2BA units, 46 2BD/2.5BA units, and 1 3BD/2.5BA unit. The sponsor plans to spend $1.2M to upgrade all 169 units and the amenity space, amongst other items. The sponsor expects to renovate the units on a rolling basis, averaging 10 units per month. Renovation work is expected to commence in approximately 7 months and take about 17 months to complete.
Royal Athena apartments are located at 600 Righters Ferry Rd, Bala Cynwyd, PA 19004. Of the 275 units, there are 50 studio units, 147 1BD/1BA units, 24 2BD/1BA units, and 54 2BD/2BA units. The sponsor plans to spend $1.6M to perform an amenity space refresh, build out a model unit and office, and rebrand the property.
Ann'l management fee
Target ann'l net return
12% - 13%
Share in excess profits
Target equity multiple
1.85x - 1.95x
Target ann'l cash yield
Quarterly + event based
First year expense
Annual Flat Expense
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.