America has always been a nation on the move. In the 60s, 70s, and 80s, millions of baby boomers and Gen Xers left the Northeast and Midwest for the West Coast. It was perfectly logical. There were lots of jobs and affordable housing. 300 days of sunshine a year didn’t hurt either.
Today, millennials are still looking for a warm climate and affordable housing like their predecessors. But they are looking for him in a different place. The affordable housing that once drew millions to the West Coast has all but disappeared. This has left Millennials moving en masse to the Sunbelt, where the weather is still warm but housing prices are much more accessible. By some estimates, more than 60% of the US population now lives in the Sunbelt states.
New fund sees opportunity in Sunbelt’s growing population
Sunbelt states like Florida, Arizona and Texas have a lot to offer. Not only is there plenty of affordable housing, but two of those states also have zero income tax, and Arizona’s top tax bracket is just 4.5%. Besides that, these states offer plenty of sunny weather and outdoor recreation.
The Private Equity real estate platform crowd street is betting on continued growth in the solar belt region. The platform’s latest managed fund offering, the Sunbelt Growth Fund I, aims to give investors the opportunity to buy multiple Class A assets in a highly diversified fund for a fraction of what it would cost to acquire those assets. individually.
CrowdStreet’s Sunbelt Growth Fund will seek to build between 8 and 10 high-quality assets in several major cities in the Sunbelt. The cities where the assets will be located, as well as the assets themselves, have been carefully chosen based on expected population growth and market growth.
What’s in Sunbelt Growth Fund?
Given the high number of millennials and retirees moving to the Sunbelt, the growth fund targets a diverse range of assets across multiple sectors. The idea here is to give investors as diversified a portfolio over as wide a swath of the sunbelt as possible.
Specifically, the fund is considering cities like Atlanta, Miami, San Antonio, Houston, and Phoenix (among others) for multi-family housing and build-to-let developments. The fund’s hotel sector seeks cities like Charleston, Miami, Myrtle Beach and Tampa/St. Petersburg. On the industrial and commercial front, cities like Charlotte, Nashville, Austin and Dallas are on CrowdStreet’s target list.
CrowdStreet believes that once the assets are built, investors in Sunbelt Growth Fund I will benefit from strong dividends and real estate appreciation. If the fund performs like CrowdStreet’s previous offerings, investors should be pretty happy with the results. To date, CrowdStreet has raised nearly $3 billion in capital and paid out over $400 million in dividends.
Offers to invest in Sunbelt Growth Fund I are due by April 12, 2022, with funds due by April 15, 2022. The fund is open to accredited US investors and is eligible for self-directed IRA contributions. Interested investors should act quickly as the fund only accepts 100 investors.
- Minimum investment: $100,000
- Target IRR: 16%
- Multiple of target equity: 1.8x – 2.6x
- Distribution period: Quarterly
- Target investment period: 5-7 years
Show in progress CrowdStreet Offers on Benzinga Alternative Investments.
Photo: Courtesy of CrowdStreet