Dear Shareholder, 

We are pleased to report that as of July 31, 2022, C-REIT has closed on approximately $32.1M in investor capital, and approximately $24.3M has now been invested or slated for specific projects that were approved by the Investment Committee. As of today, we have closed on and funded one project—Kernan Oaks—and have recently submitted Indications of Interest on an additional project, bringing the total to four that are in the process of being finalized.

Please note that in addition to submitting an Indication of Interest for a new project in San Diego, CA in the amount of $4.1M, we have also decided to reduce the allocation to Investment 3: A to-be-built 16-story, Class-A mixed-use development in Nashville, TN, from $7.0M to $5.4M. The Investment Manager and the CrowdStreet Fund Investment Committee made the decision to reduce the offer to ensure the portfolio remained balanced.

This month, in an effort to provide more insight into our thought process when selecting investments on your behalf, we decided to take a second to highlight one of the more recent investments made by the fund and provide a few bullet points about what we liked about the project.

Atlanta Financial Center (AFC): Office/Value-Add - $5.4M
An iconic centerpiece of Atlanta, GA’s prestigious Buckhead submarket, a preeminent technology, and financial services submarket in the Sunbelt.

• Enterprise Sponsor: Nightingale is known in the industry as one of the most agile, creative, and operationally savvy real estate investors, owner-operators, and developers in the country.
• Favorable Basis for a Class A Atlanta Tower with an Investment-Grade Rent Roll: Presented a rare opportunity because the Seller was a “forced seller” due to investor redemptions and impending loan maturity. The Sponsor is acquiring AFC at a 30% discount to the Seller’s basis.
• Notable Anchor Tenant Tenure: The five largest tenants (31.3% of Total NRA and 79% of Occupied NRA) have anchored AFC for 31.3 years, exemplifying tremendous dedication to AFC and the highly visible address in the epicenter of Buckhead.

Lastly, we’d like to take a quick second to highlight something from your Investor Relations team. Over the last few months, they’ve seen a steady increase in the number of shareholders that would like to add to their current investment in C-REIT. For anyone interested in increasing your allocation to the fund, you can schedule some time with a member of the IR team using this link, or you can reach out to the team directly via email at funds@crowdstreet.com.

We hope you and yours have been staying cool this summer, and, as always, we want to express our gratitude for this opportunity to help you meet your financial goals.

Kind regards,

PROJECT UPDATES

Kernan Oaks: Multifamily/Value-Add - $4.5M 

Kernan Oaks represents an exciting opportunity to acquire a multifamily asset at an attractive basis and capitalize on continued favorable market fundamentals among the young family/professional demographic in the Jacksonville submarket of Florida. The sponsor, Element Property Group, is a tenured operator in the submarket and plans to achieve targeted renovation premiums of 30-45% through a unit conversion program from student housing to conventional apartments and completing some exterior upgrades. Element has successfully implemented a similar conversion strategy at two other properties. They have also made a $3.6M (13.6%) co-investment in this property. After purchasing Kernan Oaks for $87 million, Element plans to exit the project in year three through a sale at an estimated $118.2 million and an exit cap rate of 5.25%.¹

Atlanta Financial Center: Office/Value Add - $5.4M

An iconic centerpiece of Atlanta, GA’s prestigious Buckhead submarket, a preeminent technology, and financial services submarket in the Sunbelt, known as the “Silicon Valley of the Sunbelt.” Sitting on 10 acres in the center of Buckhead, the property totals 914,774 square feet of Class A office space among three interconnected office towers, spanning 12, 19, and 11 stories. A 9-story, 2,335 space on-site parking garage is included – one of the largest parking garages in Buckhead. The Sponsor is acquiring the property at a steep discount via an off-market transaction. The business plan is to implement a lease-up strategy and reactivation of underutilized retail space to deliver a Class-A office building at a significant discount to comparable new construction.

Investment 3: Mixed-Use/Development - $5.4M
A to-be-built 16-story, Class-A mixed-use development that, upon completion, will feature 502 rental units (~320,000 rentable square feet) with dedicated amenity space and ~8,000 square feet of retail space. The property is well-located in one of the fastest-growing submarkets of Nashville, TN, which had the highest unit trade per square foot of any other multifamily project in the city.² The project has achieved entitlements, a completed guaranteed maximum price (“GMP”) contract and is on track to be delivered by Q4 2024.

Investment 4: Build-to-Rent/Development - $5.3M

A 320-unit Class-A luxury “build-to-rent” single-family residential development located in Houston, TX, adjacent to the high-end suburb of Sienna. The development will consist of all single-story houses, including 111 (35%) one-bedroom houses, 189 (59%) two-bedroom houses, and 20 (6%) three-bedroom houses. Upon completion, the development will also benefit from community amenities, including a resort-style pool, clubhouse/fitness center, controlled-access gates, and a dog park. The Sponsor, an experienced developer in Houston, plans to exit the project upon completion at a 4.75% cap rate, resulting in a sale price of $119.7M.¹

Investment 5: Multifamily/Development - $4.1M 

A 125-unit, eight-story luxury apartment community in the Balboa / North Park neighborhood of San Diego, CA. The project will consist of 125 units, of which ten will be affordable, and 115 will be market rate, while also offering ground floor retail amounting to 3,000 SF. Upon completion, the property will benefit from Class A amenities, including a fitness center, club room, conference room, bike storage, private outdoor courtyard,  and amenity pool deck. The Sponsor plans on reaching stabilization in month 27 and exiting at the end of month 36 at a 4.25% exit cap rate.¹

1. This information in this communication, including information regarding this forecast, its estimated price and exit cap rate, is provided by the Sponsor of the investment opportunity. Though CrowdStreet believes the information contained herein has been obtained from sources believed to be reliable, they make no guarantee, warranty or representation of it.

2. Source: CoStar Group

Speak with one of our Investor Relations Managers
Schedule a 15-minute call with an Investor Relations Manager if you would like to add to your existing investment, or if you have specific questions about the Fund.