ElmTree Funds Announces REIT-Affiliated Early Investor Incentive Program
Private equity real estate firm ElmTree Funds announced an incentive program to benefit early investors in the firm’s recently launched ElmTree Industrial Trust, a perpetual life, non-traded industrial real estate investment trust. Investors who participate within the first 12 months of the offering will receive an additional 5% of their initial investment, in addition to the valuation of their shares, upon liquidation, following a 12-month hold period.
“We are excited to extend an exclusive opportunity for our investors in the dynamic and robust industrial real estate market,” said James G. Koman, ElmTree’s chief executive officer and founder. “The fundamentals of industrial real estate continue to show strong support, with cap rates in the attractive range of 6.5% to 7.5%, high-quality tenants, and annual rent escalators of 3% or more. This market performance is significantly more favorable than what we observed just two years ago.”
Created specifically for the high-net-worth market, ElmTree Industrial Trust features a minimum investment of only $100,000, 1099 reporting, monthly distributions, and quarterly liquidity after an initial one-year hold period. The REIT’s investment thesis is centered around constructing a durable portfolio of mission-critical, built-to-suit industrial assets that are leased to high-quality tenants on a long-term, triple-net basis. ElmTree believes that industrial assets with long-term, triple-net leases provide enhanced inflation protection compared to other forms of real estate assets, and that investing in strategically located mission-critical assets may result in a high likelihood of capital appreciation.
Additionally, ElmTree features a companion offering specifically tailored for the independent broker-dealer market, ElmTree Industrial Access Trust, which invests parallel to the ElmTree Industrial Trust.
In conjunction with this offering, ElmTree has made a long-term commitment to the high-net-worth market focused on registered investment advisers and independent broker-dealers (IBDs). To lead these efforts, ElmTree has hired industry veterans Michael Wasz and Fletcher Galloway. Wasz has more than 30 years of investment sales experience and will lead the RIA efforts. Galloway has more than 20 years of investment sales experience and will lead the independent broker-dealer efforts. In addition, ElmTree has contracted Hana Solutions and Joanna Venetch to lead the independent broker-dealer key account’s role.
Over its history, ElmTree has invested more than $10 billion in single-tenant, net-leased properties. The early investor incentive will expire on June 30, 2025.
Founded in 2011 in St. Louis, ElmTree Funds is a private equity real estate firm focused on commercial real estate. ElmTree’s team of investment professionals have executed on more than $20 billion of real estate assets.
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