ElmTree Funds Announces Industrial REIT Early Investor Incentive Program
ElmTree Funds has established an incentive program for early investors in the firm’s newly created ElmTree Industrial Trust, a perpetual-life, non-traded industrial REIT. Investors who join during the first 12 months of the offering will receive an additional 5% of their initial investment, plus the value of their shares, upon liquidation after a 12-month hold period.
The REIT features a minimum investment of $100,000, 1099 reporting, monthly distributions, and quarterly liquidity after an initial one-year hold period. The REIT’s investment philosophy is concentrated on building a long-term portfolio of mission-critical, built-to-suit industrial assets that are leased to high-quality tenants on a triple-net basis, the firm stated.
“We are excited to extend an exclusive opportunity for our investors in the dynamic and robust industrial real estate market,” said ElmTree CEO and founder James G. Koman. “The fundamentals of industrial real estate continue to show strong support, with cap rates in the attractive range of 6.5% – 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.”
ElmTree also has a companion service designed exclusively for the independent broker-dealer sector, ElmTree Industrial Access Trust, which invests alongside the ElmTree Industrial Trust.
In addition, the firm has made a “long-term” commitment to the high-net-worth market focused on registered investment advisors (RIAs) and independent broker-dealers (IBDs) with the appointment of Michael Wasz to lead the RIA efforts and Fletcher Galloway to lead the IBD efforts. In addition, ElmTree has contracted Hana Solutions and Joanna Venetch to lead the IBD key account’s role.
The St. Louis-based private equity real estate firm was founded in 2011, and its team has executed on over $20 billion of real estate assets. The firm has invested more than $10 billion in single-tenant, net-leased properties throughout its history.
The early investor incentive will expire in June 2025.