Generally, each of our properties are structured as a standalone investment and acquired with a combination of investor equity, our own equity, and conventional debt. Our 500+ investor base is comprised of a mix of accredited investors and family offices, and some of our investments are purchased with institutional investors as joint ventures. Broad Street principals make an investment in each property.
To invest with Broad Street, you must be an accredited investor. We begin each new client relationship by first listening to and understanding your individual investment objectives. We then provide you with a thorough overview of our portfolio. If you are a real estate investor, we are also well-versed in taxdeferred exchanges. Our team will work closely with you and your Qualified Intermediary to make sure deadlines are met and all paperwork is in order.
No. Our properties are private, closed-end real estate investments which by their very nature have a longer term time horizon than that of liquid stocks or bonds. Each investment will have a thoroughly detailed business plan that will outline the timeline to realize the investment and typically varies from 3 years to 10+ years. We actively manage our properties during our ownership period with the dual objectives of cash flow and income growth. Most of our properties pay a quarterly cash distribution to investors. Please read and understand each investment offering carefully before making an investment.
We provide all our investors a quarterly and annual performance review of each property and can provide additional financial reports to investors by request.
Most of our properties distribute a quarterly payment to investors. Investors receive their payment by check. The distribution amount may go up or down depending on property performance. Any adjustment to the distribution amount is made on a quarterly basis, as necessary, by our Asset Managers and principals. Some of our pursuits are focused on ground up development or more opportunistic repositioning of existing properties where distributions should not be expected for 18-24+ months.
Our goal is to provide tax documents ahead of tax deadlines. Our investors typically receive a Schedule K1 for each LLC in which they hold an investment or a year end income and expense statement for each investment property. If you have a more specific question, please consult your tax advisor.
Track Record: We have successfully been in the business of commercial real estate development, Acquisitions, Finance, Leasing and Management for many years.
Team: We have surrounded ourselves with great people and we invest the time to help them develop into great business leaders.
Relationships: We truly value and have developed powerful long term relationships with our investors, lenders, the commercial brokerage community and a deep pool of experienced lawyers, accountants, architects, engineers, general contractors and other professionals who have helped us achieve our goals.
"Skin in the Game:" We always put our own money (Broad Street principals, family and/or staff) in every investment we make.
When investing in a REIT, most investors have little to no information regarding actual properties the REIT invests in and cannot invest in their own backyard. Through Broad Street, investors can invest in individual properties, allowing for added transparency and control over investment selection and location.
In addition, REITs are such large entities that they can rarely participate in many of the modest investments Broad Street opportunities will offer, such as neighborhood retail centers or mixed use properties.
1. Asset class diversification
Investments don't all move in the same direction at the same time. This concept is measured by correlation. The lower the correlation number between two investments, the less likely they will move up and down with each other at the same time. Direct real estate has historically had a low correlation compared to most other major asset classes.
2. Potential to generate income
Direct real estate has historically generated a higher level of income than other asset classes. Typically, tenants pay rent and, after building and other expenses are paid, any remaining cash is passed on to owners and investors, which may provide a source of supplemental income.
3. Potential for growth
Real estate offers the potential for long-term growth from appreciation of portfolio properties.
Potential to reduce volatility in a portfolio
If you're saving for retirement or already retired, adding direct real estate to your investment mix may allow you to lower the overall volatility of your portfolio. Volatility is measured by standard deviation. The lower the standard deviation, the less likely it is for that investment to swing sharply above or below the historical average return.
Please note that traded investments are subject to daily price volatility because market forces determine the price, but they provide investors with ready liquidity. Non-traded REITs do not provide ready liquidity, and if investors are able to redeem shares, the redemption price may be worth less than their original investment. An investment in a non-traded REIT does not have the same level of share price transparency as a traded investment.
4. Potential to guard against inflation
Real estate has the potential to hedge inflation because property values and rents have historically increased. For tenants, leasing existing properties has been more attractive than new construction during inflationary times when the costs of building materials rise. Of course, no one can predict when inflation will hit. But the best time to buy an umbrella is before it starts to rain not after you're soaked. The same is true when considering an inflation-hedging investment.
Real estate syndication is "crowdfunding for real estate" before crowdfunding for real estate ever existed. In its most simple form, both syndication and crowdfunding involve pooling capital with other individuals for a common purpose or a common goal. In real estate, that common purpose is the purchase of a real property, a physical building you can see and touch.
The biggest reason investors participate in real estate syndication or crowdfunding for real estate is access to deal flow. Not every investor has the time to search and underwrite hundreds of properties to find a gem to acquire. But there are thousands of real estate companies all over the United States who do this for a living. By getting involved through real estate syndication, investors have access to this deal flow and the ability to invest in real estate without the hassles of property management.