Yieldstreet, a digital alternative investment platform dedicated to providing access to exclusive private market opportunities, launched its growth and income REIT, giving investors greater access to the booming multibillion-dollar U.S. housing market.
“Everybody’s comfortable with real estate. You see it, you feel it, you touch it. But finding the right real estate investment for a lot of people isn’t always so easy. That’s where we come in. Yieldstreet cuts through the complexity and leverages 100s of millions of dollars in real estate assets creating a fund portfolio that makes the decision to invest simple; providing potential income and growth,” Michael Weisz, founder and president of Yieldstreet, said.
Demand for housing continues to push prices to record highs. The S&P CoreLogic Case-Shiller Index showed prices for single-family homes rose 18.81% year-over-year, which is helping drive up rents in the multifamily market. The Federal Government’s February CPI3 showed rents up 3.8% over the last 12 months and Freddie Mac’s 2022 Multifamily Outlook predicted multifamily originations will hit $475 billion-$500 billion in 2022.
Yieldstreet’s growth and income REIT fund, a public, non-traded REIT, will invest in commercial real estate targeting the top 50 metropolitan statistical areas (MSA) focusing on what the industry calls “smile states,” coastal and sunbelt cities. The REIT will also invest opportunistically in debt securities to support on-going income distributions.
The REIT’s primary objective is to realize capital appreciation with ongoing cash distributions to stakeholders. The REIT has a target net annualized return of 11-15% over a full market cycle, with approximately 5% of current income per year with quarterly payments and quarterly redemptions after the first year invested in the fund.
Property types within the growth and income REIT will primarily include multi-family, industrial, retail, hospitality and self-storage properties.
Freddie Mac said the conditions that pushed multifamily market fundamentals to record-breaking levels in 2021 are expected to continue through 2022.
