ElmTree Funds Launches ElmTree Industrial Trust and ElmTree Industrial Access Trust

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Mar 18, 2024, 11:31 ET

The private equity leader expands investor access with industrial-focused, perpetual-life REITs.

ST. LOUIS, March 18, 2024 /PRNewswire/ -- ElmTree Funds, a leading private equity real estate firm with an established track record in the commercial real estate net-lease sector, announced today the launch of ElmTree Industrial Trust, Inc. and ElmTree Industrial Access Trust, Inc., two perpetual-life real estate investment trusts ("REITs") which intend to acquire and actively manage a diversified portfolio of net lease industrial properties across the United States. The REITs will offer an unlimited number of shares to accredited investors at an initial purchase price of $1,000 per share. ElmTree Industrial Trust is available to registered investment advisors ("RIAs") and ElmTree Industrial Access Trust is available to independent broker-dealers ("IBDs").

"Industrial real estate has long been a cornerstone of the U.S. economy, and we believe the sector's strong fundamentals will remain attractive over the long-term," said James G. Koman, ElmTree's CEO and founder. "With the growth of e-commerce, the reshoring of supply chain operations, and the movement from just-in-time inventory to just-in-case inventory, we believe that tenant demand will continue to outpace supply for the foreseeable future, resulting in positive net absorption and rental growth going forward. We are very excited to launch these offerings and to pass these opportunities on to our partners."

The REITs expect to primarily invest in single-tenant, stabilized, income-producing industrial properties with long-term net leases, along with similar build-to-suit industrial properties. To a lesser extent, the REITs may originate loans secured by industrial properties or invest in real estate-related securities. For its initial investment, the REITs acquired a 169,543 square-foot industrial property located in St. Louis, Missouri. The property is 100% leased to the BASF Corporation, a European multinational company and the largest chemical producer in the world.

As perpetual-life REITs, the REITs are intended to be sold on a continuous basis. Initially offered at $1,000 per share, the purchase price will vary on a quarterly basis to reflect the REITs' net asset value ("NAV"), once the NAV is determined, approximately two years after the REITs' initial purchase sale. ElmTree believes that the REITs' structure allows the firm a greater chance to maximize shareholder distributions while also enhancing the REITs' ability to acquire its sought-after assets.

About ElmTree Funds
Founded in 2011, ElmTree Funds is a private equity real estate firm with an established track record in the commercial real estate net-lease sector. A recognized industry leader, ElmTree's dedicated team of investment professionals have executed on more than $20 billion of real estate assets. ElmTree deploys a differentiated, disciplined investment process to identify commercial real estate opportunities for Fortune 500 companies and provides a full range of debt and equity solutions to its commercial real estate partners nationwide. For more information, visit https://elmtreefunds.com.

A full version of the risk disclosure can be found at: https://elmtreefunds.com/risk-disclosure/

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SOURCE ElmTree Funds