stREITwise1st stREIT Office: Review

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

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?


You can do this with thousands of other investors in the private investor club. While the club is free, membership is restricted to investors who have no business connections to sponsors or platforms. Also, all members must agree to keep all club info confidential by signing a nondisclosure agreement. Click here to join or get more info.

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