YieldStreet, an online marketplace for a diverse array of asset-backed investments, announced on Monday the launch of the Real Estate Opportunity Fund. According to YieldStreet, the Fund will provide investors exposure to opportunistic commercial real estate investments through a relationship with Harbor Group International (HGI), which manages $12.7 billion in real estate investments and has realized 333 investments with aggregate sales proceeds of $9.3 billion.
YieldStreet revealed that 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.”
While sharing more details about the Fund, Michael Weisz, Founder and President of Yieldstreet, stated;
“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. We’re excited to invest with an experienced manager such as Harbor Group.”
YieldStreet further reported that with the launch of the Real Estate Opportunity Fund, it adds a new offering to its Real Estate vertical. To date, Yieldstreet’s Real Estate offerings have returned almost $275 million in principal and interest.
