NEW YORK--(BUSINESS WIRE)--Yieldstreet, the alternative investing platform helping retail investors build income-generating investment portfolios, announced the launch of the Real Estate Opportunity Fund. The fund will provide investors exposure to opportunistic commercial real estate investments via a relationship with Harbor Group International (HGI), which manages $12.7B in real estate investments and has realized 333 investments with aggregate sales proceeds of $9.3B.
COVID-19 has had a broad impact on multiple sectors of the U.S. economy, with commercial real estate arguably being hit hardest. The multi-family and industrial sectors have performed relatively well, owing to the need for housing and the increase in online shopping, respectively. The hospitality and retail sectors, on the other hand, have been the most adversely impacted as global consumers and tourists were forced to stay home due to quarantine restrictions. This has resulted in liquidity issues for certain property owners, with some seeking relief from their lenders or considering a sale of their properties. It is anticipated that this will create opportunities for real estate investors to provide the needed liquidity to these property owners. The Real Estate Opportunity Fund expects to participate in financing such liquidity needs and, as the economy continues to recover, capitalize on the potential increase in demand.
The fund will gain exposure to real estate markets with strong demographics and employment fundamentals and favorable supply and demand dynamics, with investments that are expected to be made across the capital structure, in multiple asset classes, and geographically diversified throughout the U.S. and U.K. The Real Estate Opportunity Fund will gain exposure to investment properties that may include office buildings, urban retail properties, multi-family apartment complexes, hotels, business and industrial parks, and warehouse and distribution facilities, among other things.
HGI’s executive team has managed assets through multiple market cycles and has access to proprietary, real time data through their network of owned properties.
“Historically, opportunities to invest in private real estate with a specialized manager like Harbor Group would require minimums of a few hundred thousand dollars for individuals or tens of millions for institutions. The Real Estate Opportunity Fund is expected to offer access for one-tenth of the traditional cost to retail investors, marking the first time such strategies have been this accessible,” said Michael Weisz, Founder and President of Yieldstreet. “We’re excited to invest with an experienced manager such as Harbor Group.”
With the launch of the Real Estate Opportunity Fund, Yieldstreet adds a new offering to its Real Estate vertical. To date, Yieldstreet’s Real Estate offerings have returned almost $275M in principal and interest.
“We’re happy to have Yieldstreet provide individual investors exposure to a portion of Harbor Group International’s commercial real estate investments. By combining Yieldstreet’s technology know-how and HGI’s expertise in real estate investing, the Fund provides Yieldstreet investors diverse real estate opportunities,” said Richard Litton, President of Harbor Group International.
The Real Estate Opportunity Fund is furthering the company’s strategic vision to offer exposure to unique third-party investments to its members. Yieldstreet will continue to bring third-party managers to its platform with lower minimums to enable retail investors to further diversify their portfolios.
Learn more about the Real Estate Opportunity Fund here.
About Yieldstreet
Yieldstreet is reimagining the way wealth is created by providing access to alternative investments previously reserved only for institutions and the ultra-wealthy. Yieldstreet’s mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. Its award-winning technology platform provides access to investment products across a range of asset classes such as Real Estate, Commercial, Consumer, Art, Marine, Legal Finance and Aviation. Since its founding in 2015, Yieldstreet has funded over $1.6 billion of investments and is committed to making financial products more inclusive by creating a modern investment portfolio. The company, headquartered in New York City with offices in Brazil, Greece, and Malta, is backed by leading venture capital firms. Join the movement at www.yieldstreet.com.
About Harbor Group International
Harbor Group International, LLC, including its affiliates, is a private real estate and real estate related investment and management firm which controls a portfolio of worldwide assets valued at $12.7 billion. HGI is headquartered in Norfolk, Virginia with offices in New York, Baltimore, Los Angeles and Tel Aviv. The company’s real estate holdings include 4.1 million square feet of commercial properties and 46,000 apartment units. For additional information, please visit www.harborgroupint.com.
