You no longer need a big wallet or tons of cash to start investing in commercial real estate
Economic conditions in the United States have made stock market investing a dangerous option.
From an economic performance perspective, investors are looking for new opportunities that don’t include dumping money in the market. The performance of once-reliable premium technology darlings like Tesla Inc.. TSLA, Alphabet Inc. GOOGL and Apple Inc. AAPLwhich have just experienced some of their biggest declines ever in the second quarter, prompting savvy investors to look elsewhere.
Real estate investment trusts (REITs), once a recession-hedging opportunity, are currently not performing well in the market. But economic performance is another matter. While many REITs are posting higher revenue and earnings per share, some have been sucked into the bear market vortex, which has proven to be fueled not by numbers but by emotion.
It’s not your father’s CRE
The commercial real estate (CRE) market has also changed drastically in recent years, affected by supply chain shortages, labor, technology and economic factors driving up inflation. . The pandemic has had a detrimental effect on many homeowners. Nevertheless, it turned out to be positive for office owners because direct CRE/RE investments are not correlated with the market. Commercial real estate has historically been an excellent hedge against inflation. Because of this, there is increasing competition for commercial real estate assets, with more investors seeking to enter the asset class.
But for all levels, from unaccredited traders to high-net-worth accredited investors, several new commercial real estate investment platforms open the door to new opportunities.
Realty Income Corp. O, a REIT that invests in stand-alone, single-tenant commercial properties, added new properties to its portfolios and increased total revenue by up to 45% year-over-year. Based in New York THE EX has initial public offerings (IPOs) for single-asset commercial real estate investments that can then be traded on the secondary market.
The company offers investors the opportunity to create more wealth without the need for a high-balance bank statement. It also allows them to sit side-by-side with owners, enjoying the benefits of their own CRE ownership such as tax-advantaged appreciation, distributions and income. In the process, LEX also offers investors access to the asset class without large minimum investment hurdles and the freedom to enter and exit positions without blocking or blocking.
LEX turns each of the individual buildings it represents into public shares and allows all economic levels of investors to open an account with the company and browse options ranging from multi-family buildings to office properties. These investors become shareholders who can earn income when the owners pay dividends and trade their shares on the LEX public market, with no lock-ups or hold periods.
Each building offered by LEX has its own stock symbol and stock chart. The company opens up direct, tax-efficient ownership in an asset class previously inaccessible to most investors.
SOLIS investment closes July 21
For example, LEX investors can take advantage of properties that would typically be well beyond the income reach of some, such as its newest property, SOLIS – Capitol Hill in Seattle. The newly constructed six-story mixed-use building centrally located at 1300 E. Pike St. is 100% leased*. The building has 34,260 square feet of rental space, including nearly 6,000 square feet of commercial space on the ground floor.
SOLIS, completed in 2020, was Passive House Certified by the Passive House Institute US (PHIUS), which also named it 2021 Best Overall and Best Multifamily Project of the Year. Designed to PHIUS building standards, SOLIS uses up to 70% less energy for heating and cooling, significantly reducing its overall carbon footprint, saving residents money on utilities.
The property’s high-performance thermal envelope and triple-glazed windows, as well as the heat pump and energy recovery technology in each unit, provide a comfortable, quiet and healthier indoor living environment. SOLIS received a perfect Energy Star rating of 100.
SOLIS retail space is leased by local businesses, each with five-year base terms, contractual annual rent tiers, and two- to five-year renewal options.
View SOLIS IPO Details
Another obvious advantage is that the property is located in one of the strongest job and housing markets in the country. Seattle’s unemployment rate is 2.1% and local median income growth has exceeded the national level by more than 25% over the past eight years. During the same period, the city’s rent has increased by 145%, far eclipsing major markets like San Francisco, Chicago and New York.
For more information about LEX-Markets, the SOLIS Seattle property, or its other portfolio investment opportunities, visit www.lex-markets.com.
*As of 07/19/2022
Review the offering circular
Prospective investors are encouraged to consult professional tax, legal and financial advisers before investing in any offering of securities. This investment may not be suitable for all investors. Distributions and Unsecured Cash. The performance of the property and the performance of the tenants of the property are not guaranteed. Diversification does not eliminate the risk of incurring an investment loss.
All investment services are offered by LEX Markets LLC, member FINRA/SIPC.
Image: SOLIS property courtesy of LEX