From Streitwise CEO: What the here and now is telling us is that suburban office buildings – particularly those in walkab...
Streitwise is a Maryland corporation formed to acquire and manage a diversified portfolio of office properties throughout the U.S. with a focus on markets where we feel that the risk-return characteristics are favorable.
We are currently offering up to $45,154,615 in shares of common stock of 1st Streit Office, Inc. The per share price is adjusted every fiscal quarter and, as of January 1st, April 1st, July 1st and October 1st of each year. The current share price as of January 1, 2021 is $10.21.
We have previously and continue to expect to pay dividends on a quarterly basis. Our most recent dividend payment of $0.21 per common share, made in October, 2020, equates to an annualized rate of 8.34% on the current share price. Historically, the dividend payment since 2017 has averaged out to be 9.66%, with a target of 8-9% going forward.
Historical Dividend Payments
We currently own the following office properties:
The Panera Bread HQ- St. Louis, MO
The Panera Bread HQ (Streitwise Plaza) is a 290,000 square feet, three-building, Class A office park featuring the Panera Bread headquarters, New Balance, Wells Fargo, Edward Jones, Nationwide Insurance, among other tenants. The property was acquired in 2017 for $44.4 million, or $153 per square foot, which equates to an 8.9% capitalization rate on 2017 net operating income. We financed the acquisition with a $24.6 million senior loan for a 10-year term at a 4.40% fixed interest rate, representing approximately 55% loan-to-value at the time of sale.
Allied Solutions Building- Indianapolis, IN
The Allied Solutions Building is a mixed-use building in the heart of a major mixed-use redevelopment in the affluent Indianapolis suburb of Carmel. The 142,000 square feet class A project serves as the centerpiece of the greater Midtown Carmel redevelopment. Tenants include Allied Solutions, LLC (108,000 leased until 2030), F.C. Tucker (15,750 leased until 2029), Fork+Ale House (3,191 leased until 2029), Java Cold Brew Coffee (2030) and Penn & Beech (2029). We acquired this property for approximately $32.0 million, or $225 per square foot. We financed the acquisition with a $17.6 million senior loan for a 10-year term at a 4.485% fixed interest rate and a $15.2 million unsecured affiliate loan.
We are actively seeking a third property to add to the portfolio. The investment sales market, particularly for office properties, remains largely quiet as sellers are not yet willing or forced to part with assets at current clearing prices. We believe patience will be rewarded as we consider new acquisition opportunities.
Streitwise aims to acquire and manage a diversified portfolio of value oriented investments home to creditworthy tenants that provide a source of steady and growing dividends. We focus on non-gateway markets typically more fairly priced at higher capitalization rates (or cap rates), and finance our acquisitions with modest leverage to minimize the risk of principal loss.
We target strategically-located properties proximate to transportation, nearby amenities and a base of established employers and industries. In particular, we concentrate on high quality of construction properties with a track record of sustained occupancy well positioned to outperform the broader market.
Tryperion Partners, the sponsor of Streitwise, is a private real estate investment firm that provides investment management services to a range of foundations and high net worth clients. Our Sponsor utilizes its extensive real estate expertise and industry relationships to create value through prudent acquisitions and aggressive asset management.
Our Sponsor’s valuable real estate and investment expertise includes the following:
Real Estate Investment Experience – To date, Eliot Bencuya, Jeffrey Karsh and Joseph Kessel, the principals of our Sponsor have collectively underwritten and/or managed the acquisition, ownership and disposition of real estate investments valued in excess of $5.4 billion spanning all major asset classes. Since 2013, Sponsor has sponsored three value-add closed commercial real estate funds that successfully raised a total of over $161.0 million of equity capital, of which approximately 70.8% has been invested.
Proven Ability to Source Attractive Opportunities – Our Sponsor has sponsored three value-add closed-end funds targeting all commercial property types. Through these vehicles, as of December 31, 2019, our Sponsor has successfully acquired approximately $405.7 million of real estate in various U.S. markets and property types.
Asset Management Experience – The principals of our Sponsor have a strong track record of adding value to investments made, both in direct deals and in joint venture deals, through aggressive management and leasing, strategic capital improvements, and prudent financing programs. Our Sponsor has the experience necessary to help guide investments through various market conditions.
This Offering is a relatively illiquid investment with a 1-year lockout period followed by a Redemption Plan for years 2 - 5 that redeem funds on a quarterly basis at a discount to NAV. More details below:
SW Manager, LLC, dba “Streitwise,” (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Partners, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st Streit Office Inc. (“1st Streit Office”) and 1st Streit Office Operating Partnership LP (our “Operating Partnership” and, together with 1st Streit Office, “Our Current Offering”). 1st Streit Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “Streitwise” refer, as applicable, to Manager, 1st Streit Office, the Operating Partnership, or any of their affiliates (collectively, the “Streitwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the Streitwise Entities. Streitwise is not affiliated with nor related to NAREIT or its annual REITwise conference.
Managing your account disclaimer:
Investing in Streitwise through Republic will allow you to track your investment (principal and dividends) on Republic’s investor portal along with your other Republic investments. Once your initial Streitwise shares are issued, you will gain access to our own Investor Center through our 3rd party transfer agent, Computershare. In the Computershare Investor Center, as an individual, you can view your account holdings as well as add funds, enroll in dividend reinvestment, certify taxes, and more. If you have a non-individual account (IRA, Trust, 401K, LLC) you will need to contact us at Streitwise directly to make modifications to your account.
With an individual account, if you decide to increase your Streitwise investment, you can do so either through Republic or through the Computershare Investor Center. The key difference is that the minimum additional investment once you have established an account is $500 in the Computershare Investor Center, whereas through Republic any additional funds require a minimum investment of 100 shares at the then current NAV ($10.07 currently which is a $1,007 minimum). If you have a non-individual account, you can contact us directly at Streitwise and we can advise you of your options to add more funds.
An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that 1st Streit Office Inc. may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You may obtain a copy of the offering circular that is part of that offering statement HERE. You should read the offering circular before making any investment. Our current offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBS Act. Republic Real Estate is hosting this offering as a technology services provider.
1 Since inception annualized dividend includes all dividends from commencement of operations of Our Current Offering through the quarter ending September 30, 2020.
2 #1 Overall Fund Fees and Experience as rated by The Real-Estate Crowdfunding Review.
3 Source: FTSE NAREIT All Equity REITs vs S&P 500. Real estate has outperformed the S&P 500 with more than double the gains since 1990.
4 Related to investments by Sponsor as part of one of its prior programs, and not of any of the Streitwise Entities.
5 We will seek to invest in real properties and other real estate-related assets that we believe can produce a 8-9% return. Based on our Sponsor’s prior experience, we believe that we can acquire a portfolio of assets that has the ability to achieve this return for investors. However, we cannot guarantee that we will reach this target return for our investors.