High dividend yield returns: 8%-10% annualized returnsOver 8% dividends since 2017. 8-9% (net of fees) dividend returns targeted in 20224
Strong recession performance + Conservatively leveragedStrong credit tenancy in portfolio that paid 100% of rent obligations through 2020-21 recession. 50-55% LTV portfolio.
Over $5 million skin-in-the-gameShared alignment between investor and Sponsor. Sponsor has history of 30.3% IRR / 1.87x on realized investments as of 1Q21.3
Low fee structure: No hidden fees3% upfront (investors keep 100% of shares purchased) / 2% annual fee (taken out of dividend payout). More details here.
Highest-rated real estate investing service by Motley FoolRated #1 in 2020 by The Motley Fool out of over 25 real estate investment platforms
Natural hedge against inflationReal estate such as REITs have outperformed the stock market over the last 30 years2
All Incomes: Accredited & non-accredited investorsThis is one of the few private real estate offerings available to non-accredited investors. You don’t need to be a millionaire to invest in Streitwise.
Any location: USA investors & foreign investorsSee here for more info
Payment Types: ACH (bank), wire, check, Bitcoin, Ethereum
Leading our current offerings is Streitwise Plaza in Sunset Hills, St. Louis. This is a 290,000 square feet Class A office park that features the Panera Bread Headquarters, New Balance’s regional headquarters, Wells Fargo, Edward Jones, Nationwide Insurance, among other strong credit tenants.
As of January 2022, we have collected contractual rent obligations from every tenant in the portfolio.
Allied Solutions Building is a $32 million mixed-use building in the heart of a major mixed-use redevelopment in the affluent Indianapolis suburb of Carmel. The 142,000 square feet class A project serves as the centerpiece of the greater Midtown Carmel redevelopment. Tenants include Allied Solutions, LLC (108,000 leased until 2030), F.C. Tucker (15,750 leased until 2029), Fork+Ale House (3,191 leased until 2029), Java Cold Brew Coffee (2030) and Penn & Beech (2029).
As of January 2022, we have collected contractual rent obligations from every tenant.
The Offering 1st Streit Office currently consists of Streitwise Plaza and the Allied Solutions Building. We are actively pursuing additional properties. We intend to acquire, over time, a diversified portfolio of quality office property. You can get more details about what’s in our Current Offering here.
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.
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).
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.
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.
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 Q1 2021, the minimum is $5,095 based on the NAV of $10.19 (500 x $10.19).
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.
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:
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.
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 2022, 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 2020-21 (we’ve collected 100% contractual, undisputed rents through January 2022) 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.