Streitwise --1st Streit Office Inc: Review

Category: Non-accredited investor funds
Honors: Top core-plus fund, best fees

IMPORTANT 2021 COVID-19 UPDATE: The investment repercussions of the global pandemic continue to change and evolve with unusual speed. As such, this review might be dated, no longer accurate, irrelevant and/or missing crucial information necessary to making an effective investment. For the latest and greatest information on analyzing investments in this new era, see the latest article in the series: "How will Covid-19 / Coronavirus Affect my Alternative Investment Portfolio?"

The stREITwise founders' resume looks very impressive. They claim to have collectively underwritten and/or managed the acquisition, ownership and disposition of over $1.7 billion of real estate equity investments valued in excess of $5.4 billion spanning all major property types throughout the US. And they have the experience of investing hundreds of millions of dollars in office buildings, which is the specific focus of this fund.

The fund they created is 1st stREIT Office is a rare, difficult to find conservative, core plus strategy fund. It invests in institutional quality, stabilized office properties throughout the United States. It's a 10% target yield and currently is at $76 million in size.

Leverage is at 55% loan to cost, which is moderately conservative leverage and in-line for core plus strategy. (The fund targets 40 to 60% portfolio wide leverage).

Skin in the game is very high, with the principals putting in a co-invesment of $5mm out of $28mm+ or 17%.

It has some of the best fees in the industry as well. The most important is that there is no performance fee (also called a promote or waterfall). When a fund does well, this is the fee that sucks the most return away from an investor. So that is great to see. All other fees are in line or below average. They are exceptionally good on the acquisition fee, charging none (versus an industry average of 2%). The only place where they are slightly above average is that they charge a 3% fee on deposit (2% average). But this is a minor quibble. Overall the fees are excellent and earns them the "best fees" award for non-accredited investors.
 

The minimum investment is $1000 which is average for the industry.
 

  • Advantages: Very experienced sponsor, lowest fees among nonaccredited investor offerings, high skin in the game.
     

  • Disadvantages: No bankruptcy protection
     

  • Accolades: Best fees, top core plus fund.

For more raw data on the site (including investor and sponsor fees, legal structure etc.), or to easily compare it with the data of competitors, see the feature by feature comparison matrix.

 

Where can I discuss stREITwise: 1st stREIT Office?


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About Ian Ippolito
Ian Ippolito: investor and serial entrepreneur

Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.

 

Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.

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  • Code of Ethics: To maintain objectivity, I do NOT accept any money from any outside sponsor or platform for ANYTHING (including but not limited to affiliate ads, advertising etc.). See code of ethics for more.
     

  • Personal opinion only: All info is my personal opinion only as an investor. I am not an attorney, nor an accountant, nor your financial advisor. Always do your own due diligence and consult with your own licensed professionals before making any investment decision. Information is believed to be correct but may have errors, so use at your own risk. If you find an error, please let me know.
     

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    So, the site ratings are based on criteria which I feel are important to the broadest range of investors (transparency, volume, bankruptcy protection, etc). And even though I have my own personal, conservative, due diligence method (and talk about how the site's deals measure up in the "deep dive section"), I don't use my personal criteria as a factor in the ratings. So for example, a high ranking/rating doesn't mean that I would personally invest in a site (and vice versa). Click here to see what's in my own portfolio.

This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed. 

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