2Q21 Letter from CEO: An Overview of the Market & Portfolio

It’s an interesting time for the office market, to say the least. Uncertainty regarding the employee return to offices, WFH initiatives, and large increases in sublease supply in some well-known central business districts have led to sensational headlines regarding the future of office space. As is typical with trending topics, there are elements of truth mixed with elements of hyperbole, resulting in opportunity for those who understand the dynamics on the ground.

The economy is also in an uncertain period with a quick rebound in employment (sharply off the lows), supported by fiscal stimulus and pent up demand, offset by concerns over pockets of supply-demand imbalances in goods and services.

What we see as investors today is vast dispersion. Major metropolitan areas, specifically those gateway markets with significant exposure to technology, are hurting for occupancy and the backfill flows have yet to materialize en masse. Smaller markets that did not see explosive demand in the past are seeing less sublease pressure, but face similar demand constraints.

On the tenant side, tour activity has picked up fairly dramatically from the depth of the pandemic but is focused on Class A locations and/or Class A product. Midwestern and southeastern cities are returning to the office faster and earlier than their west coast and northeast counterparts.

Portfolio Performance
Our portfolio has been resilient as we expect most of our tenants to be fully back in the office by fall.

We signed two leases this year taking occupancy at the Allied Solutions Building to 100% and are actively negotiating renewals at Streitwise Plaza (St. Louis). Furthermore, we see activity through the St. Louis MSA focused on already tight office submarkets for top-of-market product, and we expect that to ultimately provide tailwinds.

On the investing side, we see evidence that there may be opportunities to buy top quality assets at fair prices, especially relative to other property types. We will remain patient and wait for the right opportunities to acquire generational assets for the long term.

Alex Wills

Mr. Wills is the Marketing Director and Head of Product for Streitwise.

Prior to joining Streitwise, Mr. Wills was Head of Paid Media at Bitcoin IRA and Fortress Gold Group. Previously, Mr. Wills was the Director of Lead Generation at GTMA, a real estate marketing agency, where he founded the paid media department that oversaw a large nationwide portfolio of multifamily properties. Mr. Wills holds a Bachelor of Science degree in Marketing from the University of Florida.

SW Manager, LLC (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Holdings, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st Streit Office Inc. (“1st Streit Office”) and 1st Streit Office Operating Partnership LP (our “Operating Partnership” and, together with 1st Streit Office, “Our Current Offering”). 1st Streit Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “Streitwise” refer, as applicable, to Manager, 1st Streit Office, the Operating Partnership, or any of their affiliates (collectively, the “Streitwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the Streitwise Entities. By using Streitwise, you accept our Terms of Service and Privacy Policy.

An offering statement regarding this offering has been filed with the SEC. This offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBS Act. The SEC has qualified that offering statement which only means that Streitwise may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You should read the Offering Circular before making any investment which is available here: streitwise.com/oc

You may have been referred to Streitwise by a third-party (“Solicitor”). Compensation to any Solicitor may be up to $200 per email registration. A Solicitor may promote and/or may advertise Streitwise’s investment services and may offer independent analysis and reviews of Streitwise’s services. Streitwise and any Solicitor are not under common ownership or otherwise related entities. We cannot ensure the accuracy of the data provided from any Solicitor.

Performance: Past performance is not a guarantee of future results. All historical returns, target returns, or hypothetical projections may not reflect actual future performance.
Risk: This investment involves a certain level of risk and may result in partial or total loss. We cannot guarantee that we will reach our target return for our investors.
Tax: Prospective investors should confer with their tax advisors regarding the tax consequences based on their particular circumstances. Neither Streitwise nor any Solicitor assumes responsibility for the tax consequences for any investor.
Liquidity: Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term should not invest. See Stockholder Redemption Plan in the OC.

¹ Dividends & returns: Current annualized dividend based on the most recent dividend declaration as of the quarter ending 3/31/2024. Dividend return calculations based on NAV at the time of dividend return. 1Q24 dividend payout of $0.11/share equates to a 6.2% dividend based on the current NAV. The REIT has averaged a 7.2% annualized return since 2020 and a 8.3% annualized return since 2017 based on the average NAV for the respective periods. See Quarterly Report for all returns history.
² Source: FTSE NAREIT All Equity REITs vs S&P 500.
³Sponsor Performance: Related to investments by Sponsor, Tryperion Holdings, as part of one of its prior programs, and not of any of the Streitwise Entities. Reflects gross IRR on realized investments in the Sponsor’s investment portfolio since inception. Sponsor performance data as of 4Q23.
⁴Target returns: We will seek to invest in real properties and other real estate-related assets that we believe can produce a strong return through a combination of cash flow and appreciation. We cannot guarantee that we will reach this target return for our investors.

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