New Industrial Real Estate Development Offering With 17% Target IRR

CrowdStreet has launched a new offering on its real estate crowdfunding platform (view more offerings) for the development of DFW Port 45, a 567,516 square foot rear-load industrial project in Southeast Dallas with a 17% target internal rate of return (IRR).

The deal sponsor is raising up to $16.8 million from investors on the CrowdStreet platform to acquire the 37.3-acre site in Dallas, TX, and construct two rear-load industrial buildings. The sponsor anticipates having the project completed by December 2022 and selling the property in the third year at an estimated cap rate of 4.5% after leasing both buildings.

Investment Highlights: The Southeast Dallas industrial submarket has seen rent growth of just under 10% in the past 12 months with net absorption of approximately 4.9 million square feet (SF) over the same period. This is a major indication of the demand for industrial real estate in the area.

Significant regional commitments have been made by Amazon (NASDAQ:AMZN) for 1,044,647 SF, Lowe’s (NYSE:LOW) for 810,900 SF, Mars Petcare for 61,806 SF, Georgia Pacific for 999,728 SF and Home Depot (NYSE:HD) for 532,957 SF.

The project’s central location and proximity to the DFW International Airport puts almost anywhere in the U.S. within a four-hour flight, making it a national leader and strategic location for distribution and logistics capabilities.

• Minimum investment: $25,000
• Target IRR: 17%
• Target equity multiple: 1.6x
• Target investment term: 3 years

View more details for this offering on CrowdStreet

Deal Sponsor: The DFW Port 45 opportunity is being offered by Griffin Partners, a full-service real estate operating company based out of Houston, Texas. The company has made 47 consecutive profitable investments with weighted average returns, net of all fees, to investors of 14.5% IRR and a 2.2x equity multiple.

DFW Port 45 will be the sponsor’s eighth deal funded through CrowdStreet.

Glossary of Terms Used in This Article

Cap Rate: The rate of return on a real estate investment based on the income the property is expected to generate after operating expenses.

Equity Multiple: The total return achieved on an investment, calculated by dividing the total dollars received by the total dollars invested.

Internal Rate of Return (IRR): The average annual return over the lifetime of an investment.

Net Absorption: The number of square feet that became physically occupied, minus the number of square feet that became physically vacant during a specific period.

Photo: Courtesy of CrowdStreet