ElmTree Funds, the St. Louis-based private equity real estate firm focused on the commercial real estate net-lease sector, has unveiled an early investor incentive program designed to benefit early investors in the firm’s recently launched ElmTree Industrial Trust, a perpetual life, non-traded industrial REIT.
According to the company, investors who participate within the first 12 months of the offering will receive an additional 5% of their initial investment, in addition to the valuation of their shares, upon liquidation, following a 12-month hold period. ElmTree Industrial Trust features a minimum investment of only $100,000, 1099 reporting, monthly distributions, and quarterly liquidity after an initial one-year hold period.
The company added the REIT’s investment thesis is centered around constructing a portfolio of mission-critical, built-to-suit industrial assets that are leased to high-quality tenants on a long-term, triple-net basis. The company also features a companion offering specifically tailored for the independent broker-dealer market, ElmTree Industrial Access Trust, which invests parallel to the ElmTree Industrial Trust.
“We are excited to extend an exclusive opportunity for our investors in the dynamic and robust industrial real estate market,” said James G. Koman, ElmTree’s CEO and founder. “The fundamentals of industrial real estate continue to show strong support, with cap rates in the attractive range of 6.5% to 7.5%, high-quality tenants, and annual rent escalators of 3% or more. This market performance is significantly more favorable than what we observed just two years ago.”
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