Private real estate funds have traditionally been an investment vehicle reserved almost exclusively for institutional investors and the ultra-wealthy. However, individual investors are now accessing the opportunity to get a piece of the high potential returns and passive income that owning equity in commercial real estate can provide.
Here are 3 real estate offerings currently available that have target returns between 18% and 22%.
New Era Medical Investment Fund IV: Sponsored by New Era Companies, this fund’s strategy is to acquire, develop and redevelop medical office buildings, post-acute care hospitals and specialty medical facilities across the U.S.
The sponsor has a strong track record, having delivered a realized project-level internal rate of return (IRR) of 53.73% on the company’s 5 realized deals.
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Minimum investment: $25,000 + $1,000 increments
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Target IRR: 18% to 20%
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Target equity multiple: 2x
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Target cash yield: 8% to 10%
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Target investment term: 5 years with 2-year extension option
View fund details on CrowdStreet
ZRP Storage Opportunity Fund: The $50 million fund is targeting a portfolio of both value-added and new development self-storage opportunities to produce cash flow and substantial capital gains.
The fund’s sponsor, Ziff Real Estate Partners, intends to acquire a portfolio of roughly 15 self-storage properties through the ground-up development of new facilities and purchasing existing facilities that can benefit from improvements and expansion.
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Minimum investment: $25,000
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Target investor IRR: 22%
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Preferred return: 8%
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Target investment term: 5 to 8 years
View fund details on RealCrowd
Sunbelt Multifamily GP Fund: This fund will target core-plus and value-added multifamily acquisitions across the Sunbelt region.
The GP fund is investing as the general partner, which offers investors the potential for outsized returns over a traditional limited partner position.
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Minimum investment: $50,000 for qualified purchasers and $100,000 for accredited investors
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Target investor IRR: 21%
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Target equity multiple: 1.9x
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Target investment period: 2 years
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Target fund life: 5 years
View fund details on CrowdStreet
Want To Be the First To Know About New Investment Opportunities? Gain access to the same investment offerings on which institutions and billionaire investors are earning 20% to 30% or higher annual returns.
While real estate crowdfunding is giving individual investors access to private deals that have historically been out of reach, many of the most lucrative deals are fully funded before the average investor ever has a chance to get involved.
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Photo: Courtest of CrowdStreet
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