To start the investment process, click here. There you will enter in your contact information, payment information, and how many shares you wish to purchase. Your payment options include ACH (bank), wire / check, Bitcoin (BTC), and Ethereum (ETH).
The minimum investment is 500 shares at the NAV price in effect at the time of purchase which is approximately $5,000. The minimum may change quarterly, based on share price changes. We also may adjust the share price minimum any quarter. Once you’ve invested you can increase your holdings in $500 increments.
As of Q4 2021, the minimum is $5,065 based on the NAV of $10.13 (500 x $10.13).
We expect that we will declare and pay dividends on a quarterly basis, about 10 days after each financial quarter ends.
You will be able to redeem your shares after one year through our share redemption program, with no penalty after five years. However, we encourage all investors to take a long term approach to their investment with Streitwise.
Since inception, we’ve delivered over 8% annualized quarterly dividends (net of fees) with a dividend target of 8-9% going forward.
We expect that the dividend rate will be set at a level that we believe will be consistent and sustainable over time. There can be no assurance as to when, if, and at what level, dividends will be paid as that is a decision our Board of Directors makes each quarter.
Streitwise reimburses our Sponsor, an affiliate, for organizational and offering costs up to 3% of the total proceeds generated from the Offering. That means 97% of those funds goes to Streitwise, and 3% goes to the Sponsor. The investor retains the total shares purchased which is the basis for all dividend calculations, meaning you will own 100% of the shares you purchase. This is a one-time fee reimbursed to the Sponsor and occurs for any new share issuances.
In addition, Streitwise needs a manager to oversee operations. Instead of using a 3rd party, Streitwise is managed by an affiliate of the Sponsor which requires disclosure of the 2% annual management fee. This is part of the operating expense of Streitwise.
All dividends quoted have been net of fees, with the fees already taken out for calculations. We do not charge any other fees such as acquisition fees, servicing fees, special servicing fees, financing fees, or disposition fees, or any other hidden fees that competitors often bury in the offering documents but advertise as non-existent.
Yes; This is a rare Offering open to both accredited and non-accredited investors in accordance with the “qualified purchaser” requirements included in our Offering Circular.
If you are a non-accredited investor and a natural person, your investment may be no more than 10% of the greater of (i) your individual or joint net worth, excluding the value of your residence, and (ii) your individual or joint income in each of the two most recent years, as well as your expected income in the current year.
There are several tax advantages to investing in REITs that aren’t available with other investable companies:
We do now have an iOS app for Streitwise investors that enables them to view their holdings, add more funds, access quarterly returns & tax returns, enroll in dividend reinvestment, among more features. We do not currently have an Android app available.
Note: The iOS app is in beta testing.
A Real Estate Investment Trust, or REIT, is a tax-advantaged company that owns income-producing properties and distributes the cash flow to investors in the form of dividends. Learn more about REITs here.
In general, a REIT is an entity that:
Pays dividends to investors of at least 90% of its annual ordinary taxable income.
Among the three founding partners, their current skin-in-the-game in Streitwise is over $5 million (500,000 shares) in the REIT. This is a high skin-in-the-game, indicating their confidence in this investment going forward as well as an alignment of interest between investor and principals.
This is a moderate / conservatively leveraged REIT. Total secured note leverage (LTV) is 51%, as of 9/30/21. Historically total secured note LTV has been 51-55% and is subject to principal paydowns and NAV.
Yes, it is possible to invest as a foreign / non-US resident and as a non-US citizen. Subject to certain limitations and clearances, we are able to accept international investors. Those with a US-based bank account will be able to invest through their bank and those without a US-based bank will need to complete a wire payment.
On-boarding of foreign investors, registration and setup of the investor center, and delivery of physical correspondence may be delayed relative to domestic investors.
As of 2021, we have collected contractual rent obligations from every tenant in the Offering. We have evaluated rent relief requests on a case-by-case basis through 2020-21’s pandemic-related market volatility and have granted adjustments for 3 tenants. In the long run, we believe the quality and location of our properties will continue to allow us to weather economic storms better than most.
The advantage of Streitwise is potentially higher dividends by accessing properties not available through public market REITs. Consistent dividend payouts and consistent share prices means investors have generated large gains on their returns. There’s potential for large gains in the public stock market but dividend payouts are often smaller at 2-5% and at larger risk for fluctuations in prices.
Our share prices are set quarterly unlike publicly traded REITs so there’s often more volatility as publicly traded REITs are more closely tied to the stock market. Main drawback is liquidity as they can’t be instantly sold which means you are not paying the liquidity premium like you would with publicly traded stocks.
We as a company believe that we are well positioned to continue to benefit from investing in class A commercial property located in secondary urban-suburban office locations. Our CEO recently addressed in detail why we believe commercial property can be a strong investment opportunity in a post-Covid world and why we believe targeting secondary urban-suburban markets can be beneficial for investors in the future. as well as continuing to target secondary urban-suburban markets.
Put plainly, many organizations will still have requirements for office space, and it will likely be less dense than before. To the extent the office now means more than just a place to sit and do work, they are likely going to focus on Class A properties in good locations, which has been Streitwise’s focus. They will prioritize — even at premium pricing — office products offering the lifestyle for those workers who desire an easily-accessible central location surrounded by activities and amenities. Class A buildings bring greater flexibility for companies to shuffle workers and move workspaces to accommodate needs in a pandemic. This is especially true in walkable suburban locations, which has been our focus in acquiring new assets. This is in line with population trends, those moving from big cities to suburban locations, as well as consumer demand, which will continue to grow for walkable locations that mimic city-style living.
We believe the significant changes to office mean opportunity for the future. Our office properties have performed well through 2020 (we’ve collected 100% contractual, undisputed rents through May 2021) and we anticipate the Offering will continue to perform well going forward.
Yes, there are risks. Similar to any investment, there is no guarantee of a return of principal or any return thereon. The real estate market is cyclical and it is difficult to know how and when the market will change.
What you’d be investing in is an online REIT which includes ownership in the buildings in the offering as well as any future properties we add to the offering. Every quarter we aim to distribute a dividend to investors which can be either through a check, direct deposit, or reinvested. As we acquire more investors we aim to purchase more properties to add to the offering which you’ll also own a share of.
Streitwise aims to acquire and manage a diversified portfolio of value oriented investments home to creditworthy tenants that provide a source of steady and growing dividends. We focus on non-gateway markets typically more fairly priced at higher capitalization rates (or cap rates) and finance our acquisitions with modest leverage to minimize the risk of principal loss. Our current offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBs Act.
Generally, yes. You may make an investment through your IRA or other tax-deferred retirement account. We are approved with custodians such as Millennial Trust Company, New Direction Trust Company, Advanta IRA, Equity Trust, Strata Trust Company, and more.
Your investment may be subject to our discretion to:
(i) not accept your IRA and other retirement account investment, or
(ii) redeem your interest if, in either case, there is a material likelihood we would be deemed to be a fiduciary or be at risk of forfeiting our Real Estate Investment Trust tax status.
This is one REIT offering made up of a portfolio of properties. As we acquire more investors we aim to purchase more properties to add to the offering which you’ll also own a share of.
Note: Dividends reinvested will be subject to the same Redemption Plan schedule that the principal amount is based off of.
Similar to any investment, there is no guarantee of a return of principal or any return thereon. The real estate market is cyclical and it is difficult to know how and when the market will change.
While we cannot guarantee any future performance, our most recent dividend equated to a 8.4% annualized dividend based on the original share purchase price of $10/share. The timing and amount of an investor’s return is not guaranteed, and past performance is not indicative of future returns.
Investors will receive a Form 1099-DIV, if required, by January 31 of the year following each taxable year.
Unless your investment is held in a qualified tax-exempt account, your dividends will generally have tax implications. Dividends will typically come in three forms – (i) return of capital dividends (which are generally not taxed and instead reduce your tax basis for future capital gain consideration), (ii) capital gain dividends (which are generally taxable at long-term capital gain rates), or (iii) dividends from current or accumulated earnings or profits (which are generally taxed at ordinary income rates). However, because each investor’s tax considerations are different, we recommend that you consult with your tax advisor.
Regular income, although there are certain tax advantages of REIT income.
There is no stated term on the investments/the REIT, but as each of our investments reach what we believe to be its optimum value during the expected life of the Company, we will consider disposing of the investment and may do so for the purpose of either distributing the net sale proceeds to our stockholders or investing the proceeds in other assets that we believe may produce a higher overall future return to our stockholders.
We currently expect that this offering will remain open for investors until we raise the maximum amount being offered, subject to applicable law, unless terminated by us at an earlier time. We reserve the right to terminate this offering for any reason at any time.
We anticipate that any such dispositions typically would occur during the period within approximately ten years from the termination of this offering (subject to pursuing alternative means of providing liquidity). You can find additional details on the disposition policies in the Offering Circular by searching for Disposition Policies. Also, see “Plan of Distribution—Length of Offering”.
Once you get past the 5-year Stockholder Redemption schedule, the Offering is good as long as we qualify with the SEC. No public market currently exists for our shares, and while we may attempt to effectuate a liquidity event within approximately ten years from the completion of this offering, we are not required to effectuate a liquidity event by any specific date. If you are able to sell your shares through our stockholder redemption plan, through secondary market sales or otherwise, you may have to sell them at a discount to their fair value.
Subsequent principal investments have their own redemption hold period. All dividend reinvestments are grouped together as a whole with the original principal investment for redemption purposes.
The risk that your investment would be subject to a bankruptcy would apply to a bankruptcy of the REIT itself or the Manager/Sponsor, in which case a standard market bankruptcy process would apply.
Shareholders have the ability to vote on the Board of Directors of the REIT as outlined throughout the circular (with respect to your question, not limited to Bankruptcy only). We are not a platform in the vein of most of the other online crowdfunding sites. An investment in 1st Streit Office, Inc., is a direct investment in a REIT operating under the direction of the Board of Directors, who are the principals of our sponsor, Tryperion Partners AND Streitwise. We are not investing or administering investment in properties managed by unaffiliated third-parties. We are real estate investors first, using Streitwise as a means of raising capital, not a technology platform to raise money to invest in other groups’ real estate investments.
What that means in terms of bankruptcy protection is that there is no “site” that can go bankrupt through which you would lose the ability to administer the investment.
While we cannot describe the pipeline in detail given the preliminary nature of the opportunities, we are currently targeting high quality office properties in markets where we feel that the risk-return characteristics are favorable.
We are currently actively pursuing additional properties in target secondary markets like Columbus, Minneapolis, Kansas City, Indianapolis, and St. Louis. We intend on acquiring, over time, a diversified portfolio of quality office properties but we can not guarantee the timeline when our next acquisition is made.
Our current offering is structured as a non-traded equity real estate investment trust, or “REIT,” under Regulation A+ of the JOBs Act.
As of June 2021, we have collected contractual rent obligations from every tenant in the Offering. We have evaluated rent relief requests on a case-by-case basis through 2020’s pandemic-related market volatility and have granted adjustments for 3 tenants.
In the long run, we believe the quality and location of our properties will continue to allow us to weather economic storms better than most. For latest performance, see quarterly report.
Our Sponsor, Tryperion Partners, through its subsidiary SW Manager, has employees that source acquisitions on behalf of Streitwise. Streitwise’s first acquisition, the Laumeier property, qualified as an acquisition under common control because it was owned by an affiliate of Tryperion Partners. Although a similar transaction may occur in the future, the expectation is that Streitwise will generally purchase assets from 3rd parties.
All investment documents are processed electronically on our website through technology and stock transfer agent services provided by FundAmerica and Computershare. These are both established and secure SEC-compliant platforms. This allows for an efficient and seamless investment process, while ensuring the authenticity and security of your information. Once your investment is processed and funds are received, you will be emailed a confirmation and your subscription agreement.
We are not a platform, but a REIT that invests in a portfolio of stabilized, commercial office properties. To compare us to other REITs open to non-accredited investors, please see this page: https://www.therealestatecrowdfundingreview.com/top-14-nonaccredited-realestate
At the inception of the REIT in 2017, we set our offering price at $10.00 per share, which was the purchase price of our shares until September 30, 2018. The per share purchase price is adjusted every fiscal quarter and, as of January 1st, April 1st, July 1st and October 1st of each year, will equal the Company’s net asset value (“NAV”) divided by the number of shares of common stock outstanding as of the close of business on the last business day of the prior fiscal quarter on a fully diluted basis (“NAV per share”).
Prior to each quarter end, we file an Offering Circular supplement with the SEC disclosing the NAV per share that will be applicable for the fiscal quarter, which we refer to as the pricing supplement. See “Plan of Operation—Quarterly NAV Per Share Adjustments” for more details.
We set the share price quarterly. The current share price is $10.13. Our goal is to provide a reasonable estimate of the market value of shares of our common stock as of the end of each fiscal quarter. Since 2017, the share price has maintained a relatively stable price around $10/share and you may consider this a viable alternative to volatile stock investments. While appreciation is a goal, it’s by no means a guarantee.
You can see share price history in the Quarterly Report here, on page 2.
Your shares constitute an equity ownership in the portfolio. The extent of appreciation (or loss) in the value of the properties is reflected in the NAV per share. See Disposition Policies section of the Offering Circular.
There is no IRR hurdle or similar calculation. Your ownership equates to a pro-rata allocation of shares issued and outstanding of the REIT.
How would you like to generate potentially high-yield passive income, diversify your portfolio away from the stock market, and build equity through institutional-quality real estate? Streitwise allows anyone (accredited or not) to easily invest in commercial real estate normally not available to regular investors. Fill out this form to learn more.