The investment window for the NEMI Fund V on CrowdStreet’s real estate investment platform is closing this week. The NEMI Fund V is raising capital to invest in a wide range of medical facilities across Texas and other growing U.S. markets. The fund will be targeting both existing and new facilities that have yet to be constructed. The fund sponsor, New Era, is banking on America’s aging population creating an increased need for medical facilities of all kinds.
Because of its focus on new and build-to-suit medical facilities, the Fund fits a variety of classifications, including value-add, opportunistic and growth. Examples of the kind of facilities the fund will invest in include the following:
- Medical office buildings
- Mental and behavioral health facilities
- Surgery centers
- In-patient rehabilitation facilities
The Nemi Fund is seeking to raise $25 million in total investor capital. The funds will be used to identify, purchase or build various medical facilities over the course of the next two years. Currently, the fund has equity ownership in two properties. One is a rehabilitation hospital in Orlando, Florida, and the other is a behavioral hospital in Norman, Oklahoma. Both facilities have single-tenant, long-term (20 years) triple net leases in place.
Aside from acquiring value-add facilities with upside, the fund will concentrate on build-to-suit opportunities. The Nemi Fund targets these kinds of buildings because medical facility leases typically run 10 to 20 years at a time. These long-term leases offer investors passive income and make the properties attractive investments when they are sold at the end of the hold period.
- Minimum investment: $25,000 (to be paid in monthly $5,000 installments)
- Projected hold period: 5 years (sponsors also possess an option to extend the hold period for one year)
- Projected internal rate of return (IRR): 18% to 20%
- Projected equity multiple: 2.0x
The projected annual average cash yield is between 7% to 9%, but the distribution period is not projected to start until 18 to 24 months after the sale on the first assets are closed. This offering does accept contributions from self-directed individual retirement account (IRA) holders.
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About The Project Sponsor
New Era is a real estate investment firm with more than 20 years of experience in commercial real estate. The firm has a heavy focus on mixed-use and medical facilities in both the build-to-suit and the value-add sector. It currently has a portfolio valued at over $200 million and $121 million in assets under management. The Nemi Fund is the fourth offering New Era has sponsored on Crowdstreet.
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Photo: Courtesy of CrowdStreet
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