Yieldstreet Launches Growth & Income REIT
Yieldstreet, a leading digital alternative investment platform dedicated to providing access to exclusive private market opportunities, today announced the launch of its Growth & 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," said Michael Weisz Yieldstreet Founder & President.
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 year2 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 & 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 & 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.
About Yieldstreet
Yieldstreet is reimagining the way wealth is created by providing access to alternative investments previously reserved only for institutions and the ultra-wealthy. Yieldstreet's mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. Its award-winning technology platform provides access to investment products across a range of asset classes such as Real Estate, Commercial, Consumer, Art, Legal Finance and Aviation. Since its founding in 2015, Yieldstreet has funded over $2.7 billion of investments and is committed to making financial products more inclusive by creating a modern investment portfolio. It is included on CB Insights' 2021 Fintech 250 List of Top Fintech Startups and Deloitte's Technology Fast 500. The company, headquartered in New York City with offices in Brazil, and Malta, is backed by leading venture capital firms. Join the movement at www.yieldstreet.com.
1Freddie Mac Multifamily Outlook 2022 https://mf.freddiemac.com/docs/2022_multifamily_outlook.pdf
2S&P CoreLogic Case-Shiller Home Price Index January 25, 2022 https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#overview
3Consumer Price Index February 10, 2022 https://www.bls.gov/news.release/pdf/cpi.pdf
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