Overview
Quarterly Commentary
• View the most recent quarterly commentary for Growth & Income REIT.
A Fund that seeks to primarily make equity investments in a variety of commercial real estate properties across key U.S. markets and property types
A Fund that seeks to primarily make equity investments in a variety of commercial real estate properties across key U.S. markets and property types
- Diversified exposure: Investments are expected to be made across different property types and investment types spanning key metropolitan areas around the U.S., helping to improve the Fund’s ability to generate risk adjusted returns for investors.
- Capital appreciation and income: Expected to generate regular, quarterly income payments with the remainder of returns expected to be generated by the appreciation of property prices at the time of resale.
- Resilient asset class: Historically, private real estate has outperformed average returns generated by the S&P 500, and acted as a potential hedge against inflation since property values and rental income typically increase during heightened inflationary periods.
- Experienced manager: Curated by Yieldstreet’s Commercial Real Estate Team, led by Mitch Rosen, and combines 40+ years of experience spanning numerous market cycles.
No offers will be made to or accepted from investors residing in or located in Nebraska and North Dakota at this time. Additionally, no offers will be made to or accepted from non-US investors
Premise
Investment details
Investment details
What am I investing in?
- As of 9/30, the Fund is invested in three multi-family properties. Over time, it is expected that the Fund will provide exposure to additional investment types, property types and cities. The three properties included in the Fund are:
- Tucson Multi-Family Equity - a 94% occupied garden-style multi-family complex located in Tucson, Arizona. View this investment's most recent update here.
- Atlanta Multi-Family Equity - a 90% (up 11% since Nov 2021) occupied luxury multi-family complex located in Atlanta, Georgia. View this investment’s most recent update here.
- Dallas Fort-Worth Multi-Family Equity - a 93% occupied garden-style multi-family complex in Dallas-Fort Worth, Texas. View this investment's most recent update here.
The Fund currently overlaps with recent real estate offerings launched on the platform including Atlanta Multi-Family Equity I, Dallas-Fort Worth Multi-Family I and Tucson Multi-Family Equity I. As the Fund ramps up, overlap with any properties offered on the platform is expected to be minimal.
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Investment strategy
Investment strategy
What is the value proposition?
- The combination of property types and investment types in different locations around the U.S. helps improve the Fund’s ability to generate risk adjusted returns.
- The Fund seeks to invest across multiple property types including multi-family, industrial, office, single family rentals (SFR) and storage, among others. Within multi-family and industrial properties, the Fund intends to focus on class-A and class-B properties.
- The Fund intends to primarily focus on equity investments but will also seek to invest across different investment types including, but not limited to, first lien mortgage loans and preferred equity opportunities.
- The Fund seeks to invest in assets located in the top 50 metropolitan statistical areas (MSAs) within the U.S. It is expected that there will be a large focus on assets located within the “Smile States” (east & west coasts and sunbelt states), as these cities demonstrate strong economic fundamentals including job creation, population migration, supportive business environments, and strong real estate investment history.
- The diversified nature of the Fund allows all investors to gain access to multiple Yieldstreet commercial real estate offerings at a lower minimum compared to investing in single offerings.
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Market backdrop
Market backdrop
Why should you consider investing?
- The case for investing in private real estate is strong because historically the asset class has outperformed the S&P 500, and higher inflation rates have not systematically affected performance. Private real estate returns are also less volatile than those earned by the S&P 500. (chart 1)
- Over the long-term, real estate can be considered a hedge against inflation, since property values and rental income typically increase during periods of inflation (chart 2 and 3). Multi-family assets are a particularly useful inflation hedge given shorter lease times, allowing management to adjust pricing more frequently.
- We remain bullish on multi-family investments given that housing is now more unaffordable than it has been over the last 33 years, according to The National Association of Realtors. This is expected to continue driving strong demand for rental units as prospective buyers are forced out of the market — making multifamily investments a potentially strong play as increased demand for units is expected to drive property valuations.
- The Growth & Income REIT offers potential for stable income, capital appreciation, inflation protection and diversification.
Essentials
Please refer to the Offering Circular in the Documents section for additional details.
Please refer to the Offering Circular in the Documents section for additional details.
Cash flows
Cash flows
How do I get paid?
- Over a full market cycle, the Fund is expected to generate regular, quarterly income payments at a targeted net annualized cash yield.
- The remainder of returns are expected to be generated by the appreciation of property prices at the time of resale.
- The total return nature of the investment means that investors have the potential to collect current income, while also potentially benefiting from capital appreciation characteristics supporting the achievement of long term financial goals.
- As cash flows are received by the Fund Yieldstreet’s management fee and all other fees and expenses as set forth in the Operating Agreement are deducted first, and then capital contributions are returned to investors. Next, the remaining proceeds are paid to investors. Distributions typically occur on a quarterly basis, however, investors may not see this payment reflected in their wallets at this time if amounts set forth in the Operating Agreement have not yet been paid in full. Once those amounts have been paid in full, investors will begin receiving payments in their wallet. Please refer to the Operating Agreement for more details.
Accessibility
Accessibility
Who can invest?
- REITs provide access to a diversified pool of real estate investments that are almost impossible for the typical investor to create on their own.
- Anyone is eligible to invest subject to their investment being no more than 10% of the greater of their annual income or net worth.
- Low investment minimum allows individual investors to invest in private commercial real estate that was once reserved for institutional investors and the ultra-wealthy.
Distribution reinvestment plan
Distribution reinvestment plan
Can I reinvest my distributions?
- Distribution reinvestment plans (DRIPs) allow investors to harness the power of compounding returns.
- The Fund has adopted an “opt out” distribution reinvestment plan (DRIP), whereby investors will automatically have the full amount of any distributions reinvested back into the Fund, unless a shareholder elects to opt out of the DRIP.
- Instead of receiving the recurring payments, distributed cash immediately goes back into the Fund and is added to your initial principal.
Liquidity
Liquidity
How do I access my funds?
- The Fund intends to offer investors liquidity events beginning the first half of 2023, whereby investors may be able to redeem at least a portion of their investment on a quarterly basis.
- Investors may not redeem any portion of their investment prior to the first anniversary of their initial investment request date. Shares redeemed prior to the 5 year anniversary of the initial investment request date will be subject to exit fees. Please refer to the Offering Circular for more information.
- Although the Fund has adopted a redemption plan to provide liquidity to Shareholders, the Fund is not obligated to redeem Shares under the plan. Please refer to the offering circular for more details.
Returns & Management fees
Ann'l management fee
1.5%
Operating expenses
~0.5%
Target ann'l net return
Login to viewTarget ann'l net cash yield
~5%
Schedule
Payment schedule
Quarterly
First expected payment date
1H 2023
DRIP
Yes
Liquidity
Yes
Structure
Tax document
1099-DIV
Net Asset Value as of Dec 31, 2022
$9.80
Why our investors chose this offering
Sylvain G.
Sylvain G.
Investor since 2018
Great diversification and exposure to a strategy that has yielded attractive returns in the past and has in my view attractive returns in relation to the shortage of home supply in the US and specifically in the regions addressed by this REIT. Great combo of income and growth strategy with potential for liquidity after 12 months, and IRA eligible.
Michael H.
Michael H.
Investor since 2020
"Multiple properties with future expansion; stable cash yield with appreciation upside."
*The testimonials presented on this page have been provided by actual investors in Yieldstreet funds without compensation. Yieldstreet has selected the testimonials, and certain testimonials have been edited to remove personally identifiable information and for brevity. Testimonials were not selected based on objective or random criteria, but rather were selected based on Yieldstreet's understanding of its relationship with the providers of the testimonials. The uncompensated testimonials presented here may not be representative of other investors' experiences, and there can be no guarantee that investors will experience future performance or success consistent with the testimonials presented.*
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.
*At this time, Fund shares are not offered for sale in the states of Nebraska or North Dakota, or to persons residing or located in such states, and no subscription for the sale of Fund shares will be accepted from any person residing or located in such states.*
This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS RE RAF I LLC ("Issuer"). The Offering is made only by means of the Offering Circular 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.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]