Retirement investors have a long wish list of what they’d like in an investment. Many want a few performance factors such as high return potential, protection from downside losses, and a steady source of income. They also want an investment with relatively inexpensive fees. Oh, and it should fit into their retirement plan.
While many investments check a few of these boxes, NOYACK NLI logistics REIT is tremendously valuable because it checks all of them (and more). To understand each factor, Let’s Talk Logistics is a new series that examines one aspect in each article where our logistics REIT adds value. Our first piece is focused on inflation.
Inflation 101
Simply put, inflation is a rise in prices. This rise generally occurs because of lower supply (e.g., difficulty in acquiring goods) or higher demand (e.g., more customers). Inflation is an important investing concept because it erodes your investment return’s value. Imagine that both your return and inflation are 7% for a year. While you earned a return, it’s only allowing you to maintain the amount you can purchase rather than increasing it. If inflation’s higher than your return, you can even have less purchasing power than when you started.
Inflation has recently reached its highest annual level in four decades, which has made the concept a high-priority topic. Many retirement investors rely on investments that provide a consistent cash payout to fund their needs, so inflation could threaten their standard of living.
How other investments fare against inflation
Overall, stocks hold up better than bonds to inflation. Many bonds pay a consistent amount of interest over a given period. Few adjust this amount for inflation, and those that do (Treasury Inflation-Protected Securities) often have minimal return opportunities. Meanwhile, many stocks pay consistent income via dividends, and each has a dividend growth rate: A measurement of the payout’s annualized percentage increase. In other words, high-dividend growth stocks are inherently designed to increase their payouts, which can help to offset inflation.
But these investments aren’t foolproof protection. A company’s dividend is tied to its performance, so dividend growth could lag inflation in periods of poor economic performance. Some experts fear that we’re entering a recession, so high inflation could continue at a time when companies lack the revenue and profits to maintain a dividend increase.
Our Logistics REIT offers superior inflation protection
In general, real estate protects against inflation because it’s a hard asset, or something that’s tangible and therefore holds an intrinsic value. Since property owners need significant time to create more land and shelter (supply), property owners can raise rent prices in response to inflation with minimal impacts to demand. Further, most REITs have a few characteristics that aid in their protection from inflation:
Further, NOYACK’s Logistics REIT has unique properties that provides even better inflation protection. We select logistics and warehouse properties that are leased under special long-term contracts. These contracts include stipulations that require annual rent raises in accordance with the CPI index, which is a common measure of inflation change over time. Our logistics REIT, therefore, grows in lockstep with inflation.
Investors are also well-suited to take advantage of this inflation protection via income returns. We distribute at least 6% of our portfolio’s value annually to investors, which itself is notably larger than the roughly 3% yield on public REITs. Inflation-driven rent increases will raise the value of our portfolio and therefore the amount of a 6% annual distribution.
Further, investors can maintain this income growth while maintaining high earnings potential. We target a 16% to 18% investment rate of return (IRR), which is significantly higher than the historical performance of stocks and bonds.
Want more?
Future articles in this series will dive into the various ways that our logistics REIT can add value. Some factors that we’ll cover include wealth preservation, volatility, tax advantages and fees. Come back every other Thursday for a new deep dive.
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CJ Follini, Managing Principal and CIO of NOYACK Capital, will shares his investing journey and explain the power of investing in supply chain real estate. NOYACK’s first offering, NOYACK Logistics Income REIT, operates with the conviction that logistics assets are undervalued relative to the market maturity of e-commerce. Learn how investing in supply chain real estate can be ideal to meet your needs providing a tested hedge against inflation, stable yield and a share construction ideally suited to tax advantaged retirement vehicles such as Roth and 401K IRA’s while providing optimal wealth preservation.
Over the past 5 years, digital commerce has grown 140% to a $2.4 trillion market opportunity, yet the supply of real estate infrastructure to meet this demand has increased only 25%, which will drive increasing revenue the next decade. Our firm, NOYACK Capital, has a 40-year track record with average annual returns of 22.4%, and has recently built a private REIT to invest in diversified supply chain assets supporting the digitization of the U.S.
For more information about how you can invest in Noyack Logistics Income REIT, click here.
Noyack Capital last week held the inaugural closing of the Noyack Logistics Income REIT I (NLI) with a $37 million initial raise.
The company uses a diversified approach focused on all commercial real estate supporting America’s supply chain. Noyack’s portfolio runs the gamut to include cold storage facilities, giant dry warehouses, medical office buildings, life sciences labs, and parking lot conversions into hybrid facilities known as mobility hubs.
Onshore Decentralization of e-Commerce Accelerating
CBRE Supply Chain Advisory reports that transportation costs typically account for 50% to 70% of a company’s total logistics spend, while fixed facility costs (including real estate) account for only 3% to 6%.
CJ Follini, managing partner of Noyack Capital, NLI’s external manager, tells GlobeSt.com that Noyack Logistics Income REIT analysts have spent most of the past year analyzing what they believe will become the next intermodal hubs.
“Onshore decentralization of ecommerce goods and products is rapidly accelerating and holding more inventory will be key to minimizing supply chain disruptions,” Follini said.
“Companies will also prefer to hold more inventory near large population concentrations with robust intermodal access in addition to the legacy supply chain locations such as seaports, inland ports and major air hubs.”
New industrial markets are emerging worldwide, driven by the need to store more inventory and diversify manufacturing sources to counter supply chain disruptions. Among them: Columbus, Ohio; Boise, Idaho; Lower Ontario (Michigan & Canada); Indianapolis; and Reno, Nev.
Noyack Capital estimates that it takes roughly an 8% increase in fixed facility costs to equal the impact of just a 1% increase in transportation costs. Based on this data, it appears that increasing inventories by adding more warehouse and distribution space could significantly reduce transportation costs for many shippers.
Follini said in a release that his company’s thesis suggests logistics assets are undervalued relative to the market maturity of ecommerce and that they offer asymmetric risk-reward potential.
NLI avoids overvalued assets by using a tremendous amount of data to triangulate price anomalies across all supply chain properties, while many of the biggest investors – Prologis, Blackstone, or KKR – get caught by the essential real estate question, Follini said in a release.
“Why keep buying plain warehouses when they are too expensive, just because of self-imposed restrictions holding their portfolio to that one asset type?” he said.
NLI uses asset diversification of high-yielding, stabilized assets and then refinances them to add additional cash flow to a conservative leverage of 65%, the company said.
“This strategy allows NLI to target a 20% annual rate of returns and 6% preferred returns each year without the industry-standard fees of more than 3%,” according to Follini.
NLI states other key points of differentiation include that it gives access to all investors at any amount and that key management have invested significant personal capital exhibiting their “skin in the game.”
Checkout the article on GlobeSt.com here
In 2017, NOYACK Capital purchased the Columbus Mobility Hub, an 11 story parking structure located in the heart of Columbus, Ohio’s Central Business District with the express purpose of adding value and transforming this single use asset into a logistics oriented Mobility Hub. The property was built in 1986 and had been exceptionally maintained. The structure served as the first parking choice for commuters to downtown Columbus, adjacent to the 47 floor Columbus Tower, home to the 150-room Marriott Autograph Collection Hotel, Columbus Residences, so there was an existing base of parking demand and revenue.
NOYACK Capital paid $36 million for the property which included the assumption of $21 million in existing debt and mezzanine note from the Seller for $6 million. This innovative acquisition structure allowed NOYACK to implement the changes necessary for the asset to consider additional categories of tenancy such as: Amazon & Walmart delivery lockers remotely enabled via smartphone; EV charging stations; robotic delivery drone hub; cold storage pods and vehicle storage. Recently The Columbus Mobility Hub was appraised for a 38% increase over the original purchase price by the end of only the fourth year. This appreciation can be attributed to NOYACK Capital’s operational improvements, a categorical transformation of the location, growing demand for parking in downtown Columbus, and the undervalued state of parking in the city.
In 2016 NOYACK Capital began building an investment thesis centered around transforming parking garages into multi-purpose logistics infrastructure known as Mobility hubs, a term created by CJ Follini and NOYACK. Why? Because the fundamentals of structured parking facilities are ideal for this newly created commercial real estate category because:
The value that can possibly be added with new sources of revenue should not be passed In 2017, they put their thesis into action with the Columbus Mobility Hub. The property was originally bought as a “structured parking” asset with a market cap rate typical of this category. However, NOYACK believes there is ample opportunity to increase the overall value of the property by reclassifying its use into a more expensive category – supply chain real estate.
When NOYACK began exploring the possibility of purchasing the Columbus Mobility Hub, the seller had three properties on the market which they were selling as a group. NOYACK was only interested in the Columbus Garage and they proved with data that the Sellers would reap greater aggregate sales if the assets were sold individually. Thus the creative deal structure described above was crafted by NOYACK’s acquisitions team led by CIO CJ Follini. The team looked at the debt as an asset, understanding that leverage, when used effectively, is a tool to improve returns, and rightsizing debt is an effective strategy to improve performance.
As described above, the Columbus Mobility Hub was purchased with a creative mezzanine loan from the seller which was subordinate to the senior mortgage but coterminous. However, this meant that the asset was purposely under-levered which could be rectified with significant cash value once revenues have been increased from improved operations.
NOYACK waited three years before refinancing the property. By this time, the senior lender’s defeasance penalty had burned off but the country was in the middle of a once in a lifetime pandemic and all business had stopped. Most real estate asset classes were suffering except one – supply chain infrastructure. Thus NOYACK’s repositioning was prescient in that Lenders were only financing supply chain real estate and the Columbus Mobility Hub received a top quality debt terms from a long term life insurance lender for $31 million at a fixed, attractive interest rate.
NOYACK used the excess proceeds to return half of every investor’s principal while still maintaining the quarterly distribution amount thus doubling the annual returns overnight. This is the essence of successful debt rightsizing.
NOYACK Capital asks three key questions when they are underwriting a property:
When NOYACK purchased the Columbus Mobility Hub they knew the answer to all four questions would be ‘yes.’
The entry price turned out to be the lowest average square foot price of a Class A facility in the past six years. Then the first operational improvement available is to install an automated parking system which improves profitability, margins and eliminates theft. Installing the latest technology of cashless systems using QR codes and Apple play is typical of the technology-centric approach of the NOYACK operations group.
The Columbus Mobility Hub is currently transforming from a structured parking garage with one category of revenue (parking) into a wholly new asset class – Mobility Hub. Firms like Amazon, Walmart, and various cold storage companies have shown interest in using the facility. In addition, negotiations are underway with charging station companies. These new revenue streams coupled with the repositioning as a supply chain asset will translate into a sale that greatly exceeds the original return rate of return expectations.
After which the garage can now be equipped with LIDAR scanning sensors allowing NOYACK to employ dynamic pricing strategies. Prices can be raised and dropped depending upon inventory with the push of a button on a manager’s smartphone. In addition to these changes, NOYACK can also install LED boards in the garage. These boards are WiFI-enabled to allow for the real-time dynamic pricing previously mentioned. For example, if there is a time of day where occupancy is low then the prices can be lowered by the manager instantly on the LED price board. Through integrations with apps like Google Maps and Waze, the Columbus Mobility Hub is able to offer instant promotions and discounts pushed directly to people’s phones via geofencing and digital advertising. This targeted marketing has been extremely successful in filling up the garage and maximizing revenue.
The Columbus Mobility Hub is a great example of several aspects of why NOYACK exceeds return expectations for its investors:
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In April 2008, NOYACK Capital purchased the 1987-constructed Gateway Garage, a five-story parking facility containing approximately 600 parking spaces, located in Portland’s Arts District on the west side of downtown.
NOYACK paid $10.45 million for the property, assuming an existing loan from the seller, with a highly attractive loan-to value ratio of less than 50%. The plan was to replace the debt with a new loan from a local bank who believed in the future of the region.
Additionally, as part of the value-add plan, NOYACK is transforming the property from a structured parking facility into a mobility hub, representing NOYACK’s innovative entrance into the mobility hub market. The initial investment has already yielded significant returns, with a refinance at better terms and an appraisal 259% above the original purchase price by 2020.
NOYACK Capital’s research into parking garages highlighted that they are typically centrally located, large structures that often occupy an entire city block, have excellent means of access and egress, and while parking alone is a good business, garages can be underutilized. Additionally, the potential to add value by reclassifying the use of the property into a more expensive category – a mobility hub – was too great to pass up.
In particular, Gateway Garage was an attractive opportunity because of key local demand drivers and low market saturation. The garage would benefit from strong transient demand due to the array of dining, nightlife, arts, and hotels nearby. Additionally, Portland receives a 1-2 point cap rate premium in comparison to Boston and New York due to its low market saturation.
When NOYACK began exploring the possibility of purchasing Gateway Garage, it was part of a package deal that also included a medical office building. After exploring the parking garage category, NOYACK realized they could be successful in this new asset class and acquired it at a favorable price, with the plan to add value and improve profitability.
NOYACK Capital assumed an existing loan from the seller with a loan-to-value ratio of less than 50%. An optimal loan-to-value ratio for a parking garage is 65%. The plan was to replace the debt with a new loan from a local bank who believed in the future of the region.
In spite of the timing of the acquisition – approaching the bottom of the Great Recession – NOYACK was able to refinance the property with better terms from a local lender who believed in the future of the region. This resulted in a lower basis and increased returns for investors.
NOYACK posits that there are three key questions that must be answered when underwriting a property:
When NOYACK purchased Gateway Garage, they knew the answer to all three questions would be ‘yes.’ The entry price was favorable and NOYACK conducted extensive research, including a pro forma analysis, to support their decision to move forward with the purchase.
Based on their findings, they were confident they could improve profitability through operational improvements, such as installing an automated parking system. This system also allowed for more efficient operations, lowered labor costs, improved customer satisfaction, and reduced losses by theft.
After taking ownership of Gateway Garage, NOYACK Capital realized that a more comprehensive engineering study should have been conducted as part of the due diligence process. This would have revealed that the steel in the garage needed to be replaced. While this was an unanticipated cost, NOYACK quickly fixed the problem and learned from the experience to conduct more thorough due diligence in the future.
Additionally, the value-add plan to transform the facility into a newly created asset class – mobility hub – would attract new revenue sources and enhance the value of the property. Proactive marketing efforts assisted in leasing the garage to capacity. NOYACK partnered with Maine Medical Center, the largest regional healthcare provider, to provide parking for 400 to 600 vehicles from 2008 to present.
NOYACK Capital plan on doing even more revenue enhancements as we transform this asset into the full vision of a mobility hub, with cold storage capacity for local grocers; EV charging stations; next mile logistics operations i.e. Walmart and Amazon lockers; and potentially the siting of cloud kitchens within the facility, serving a local community.
The garage can now be equipped with LIDAR scanning sensors allowing NOYACK to employ dynamic pricing strategies. Prices can be raised and dropped depending upon inventory with the push of a button on a manager’s smartphone. In addition to these changes, NOYACK can also install LED boards in the garage. These boards are WiFI-enabled to allow for the real-time dynamic pricing previously mentioned. For example, if there is a time of day where occupancy is low then the prices can be lowered by the manager instantly on the LED price board. Through integrations with apps like Google Maps and Waze, the Portland Mobility Hub is able to offer instant promotions and discounts pushed directly to people’s phones via geofencing and digital advertising. This targeted marketing has been extremely successful in filling up the garage and maximizing revenue.
NOYACK exceeds return expectations for its investors in several ways:
The initial investment has already yielded significant returns, with a refinancing at better terms and an appraisal 259% above the original purchase price by 2020.
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CJ Follini speaks with IMN alongside Christian Dalzell from Counter Management, Will Johnston from White & Williams, and Nadir Settles from Nuveen.
People who are approaching retirement, or who are already retired, have many reasons to be concerned about inflation and preserving the value of their investments. Real estate investment trusts (REITs) are one strategy that can help to preserve assets and also provide income.
Retirees and others have already invested about $1.5 trillion in REITs, Morningstar Direct reports. Here are some of the reasons why REITs are an effective, appealing choice for retirement income.
The way REITs are structured allows them to pay out the majority of their taxable income as dividends to investors. Unlike stocks, which have no requirement to pay dividends, each year, a REIT must pay out at least 90% of its taxable income as dividends to shareholders. As a result, REITs are considered to be reliable income investments.
Historically, REITs have provided 3.78% higher yields on average than the S&P 500. And, according to a recent analysis from JP Morgan, over the past 20 years, REITs have also provided a higher yield than gold, oil, and the EAFE index, as well as outpacing inflation.
CNBC reported that REITs were paying an average dividend yield “in the neighborhood of 3%,” higher than the 1.5% yield on 10-year Treasury bonds. High-performing and well-structured REITs offer significantly higher yields than average.
REITs also add a real estate component to retirement portfolios, contributing to a diverse, balanced investment strategy.
Real estate investments can diversify a retirement portfolio and can also help to protect assets against the ups and downs of the stock and bond market. There are a number of ways to invest in real estate. For example, many people choose to own rental properties and receive income directly from tenants. Still, others fix houses and sell them or “flip” them for a profit.
These options take time and energy and come along with the potential for big property repair bills and property tax increases. Real estate investment trusts (REITs) offer the benefit of real estate investment without the need to be directly involved in managing and maintaining rental properties.
In comparison to active real estate “fixers and flippers,” REIT investors also don’t need to worry about volatility in the real estate market. With a REIT, investors own a small share of many properties, thereby reducing the risk that is inherent in buying and selling real estate properties one at a time.
Over time, well-operated REITs also gain experience in working with property developers and owners to select and invest in optimal income producing properties. Those which specialize in specific types of properties, such as commercial real estate and logistics, are able to not just focus on average rates of return on investment, but can maximize investment returns along with stable performance and preservation of capital.
Private real estate investments have historically outperformed stocks, government bonds, and investment grade bonds during times of inflation. In the case of commercial real estate, the performance differences are impressive.
According to NOYACK’s analysis of investment performance data from BlackRock, the National Council of Real Estate Investment Fiduciaries (NCREIF), Bloomberg, and the S&P 500, commercial real estate has returned a rate of 17.23% during periods of high economic growth and high inflation over the past 20 years. Even during times of low growth and high inflation, NOYACK’s analysis shows that when different asset classes are considered, commercial real estate returned 15.98% to investors, over 6% more than government bonds, and more than four times better than the stock market.
There are several reasons why commercial real estate performs well during periods of inflation. Commercial leases are typically longer than residential lease terms. In the commercial sector, leases also often have annual rent increases that are tied to the consumer price index. This allows REITs which are invested in commercial real estate to provide reliable income through dividends. REIT investments also have significantly better liquidity than an individual piece of real estate.
And, because NLI is investing in commercial real estate assets which are part of essential, core logistics that support eCommerce, like cold and dry storage warehouses and mobility hubs, investments in NLI have a greater potential for stability as well as an excellent overall rate of return. Whereas residential real estate investments can be vulnerable to volatility in the real estate market, commercial real estate leases are longer-term, offering greater stability.
Commercial REITs offer advantages to investors during periods of inflation. Within the sector, the type of commercial properties the REIT invests in also impact the rate of investment return (IRR) and dividend targets. A firm with a hands-on approach and years of experience in the commercial real estate sector can design a fund that invests in high-potential, secure, and future-focused properties.
NOYACK’s NLI is that fund, based in an investment philosophy borne of deep knowledge of the commercial real estate market and its role in eCommerce infrastructure. Over the past five years, eCommerce has grown by 140% to reach $2.4 trillion. At the same time, investment in the infrastructure supporting eCommerce has only increased by 25%. In 2021, industrial vacancy rates were at an all-time low, at the same time as more storage space and logistics hubs were needed.
Recognizing the mega-trends in eCommerce, NOYACK’s NLI has targeted investments in micro-fulfillment (dry storage and cold storage warehouses), mobility hubs (including parking and fleet management), and healthcare and life sciences, including laboratories, telehealth, and medical offices.
Beyond this investment philosophy, which enables NLI to target a 16 to 18% investment rate of return (IRR) and set a 6% annual target distribution rate for dividends, NOYACK offers a 38-year track record of successful commercial real estate investment. NOYACK is also a hands-on firm that offers a personal and case-by-case approach to working with investors. It is committed to transparency and accessibility, offering easy access for questions and rapid, fully-transparent answers for investors from its team of experienced and committed professionals.
NOYACK’s NLI also has no up-front fees and founders have invested their own capital with “skin in the deal.” NLI benefits from NOYACK’s proprietary algorithms that help to rate opportunities. The algorithms, including , and which give NOYACK a significant advantage in sourcing and disposition of properties. NOYACK also has many years of established relationships with property developers and owners, allowing them to generate deal flows with significant discounts.
NOYACK’s team, led by CJ Follini, combines creativity with experience and data-centric analysis, to create opportunities for investment returns that exceed expectations. According to Jack Romita of the Romita Family Office, the NOYACK team has presented him with a variety of commercial real estate deal opportunities, each of which has exceeded return expectations in 14 years of investment with the firm.
NOYACK Capital has a goal of opening economic opportunities in commercial real estate along with delivering excellent investment performance to retail investors, including people who are approaching retirement or who are already retired. You can invest in NOYACK’s NLI with confidence knowing that you will have access to the professionals who have created the fund and who are committed to providing one of the best REITS for retirement income that you can consider.
NLI’s 6% minimum annual dividend for preferred shares and near-zero volatility in price qualify it well for inclusion in your ROTH IRA, 401K, or employer-defined benefit pension plan. You can learn more about NLI and how NOYACK can support your goals for cash flow and long-term wealth preservation in retirement by defining your investor profile and receiving personalized investment advice from NOYACK’s experts today.
In 2005, NOYACK Capital purchased the Laconia Life Sciences Facility for $4.4 million. The property is 45,000 square feet with a state-of-the-art 9,000 sq. ft. ISO Class 8 clean room for advanced medical device manufacturing. Capabilities:
This life science lab sits on approximately five acres in the industrial park area just off Route 106 in the lake region of New Hampshire.
The property has been leased to a KKR-owned medical device manufacturer for the last 21 years and consistently brings in rental income higher than the market average while maintaining an absolute triple net lease. It is now one of the top three life sciences facilities in KKR’s North American network.
Investment Thesis
In 2005, CJ Follini and NOYACK predicted the Northeast’s pre-eminence in the lab and life sciences sector. With clusters of renowned medical education and pharmaceutical company headquarters, it became apparent over time that NOYACK’s investment thesis in this space was correct. The Laconia Life Sciences Facility was one of the top three examples of NOYACK’s deals in this category. Now the long-term stability and growth potential of the life sciences industry in the Northeast corridor is a given.
Why We Invested
CJ Follini saw the opportunity to combine a tax deferment with a 1031 exchange from a profitable sale in 2005 and the creation of a new category ion New Hamshire – life sciences – opportunity into a premier asset class leader. Not only does the facility still contain capital gains deferred from 2005 but its value has increased exponentially as KKR continues to invest in the adjacent life sciences community.
This is a perfect example of two of NOYACK’s characteristic advantages – vision and advanced tax advantaged strategy. NOYACK Capital’s deal-making team always considers how to structure deals in a tax-advantaged way.
Value Creation
The Laconia asset is a very successful repositioning play; the property was purchased with the intention of converting the warehouse into a critical mission life sciences facility because of the highly-educated and well-trained workforce in the Laconia area. Between the tax advantages and the repositioning, the Laconia Life Sciences Facility has generated outstanding returns and continues to do so for its investors.
The COVID-19 pandemic marked commercial Life Science real estate for much-needed growth. This sector played an important role in the suppression of the pandemic, speeding the evolution of life science centers for a more collaborative future. For years, the US has led the globe in pharmaceutical R&D spending, and despite the increased spending on R&D, the specialized facilities required to facilitate this research have been undersupplied.
Life science companies, the tenants of these properties, are experiencing issues finding suitable space to continue to develop new products. For that reason, the value has grown and will continue to grow well into the late 2020s. Demand for life science properties across U.S. markets has grown by 34% since mid-2020, as the essential nature of this research and development cannot be replicated remotely. Many investment funds have taken notice of this burgeoning life science industry and the new demand behind it.
This strong demand has benefited and will continue to benefit real estate investment trusts (REITs) who have invested in these properties creating the life science REIT subcategory, and we believe three trends will add further support from here.
Here are a few reasons to consider investing in the emerging sector of life science REITs.
There is going to be a bigger need for medical care, especially as the population gets older.
An aging population increases demand for research for diseases that have hereto been considered death sentences or simply incurable. As medical technology moves forward in a variety of areas, there will be a baseline expectation of treatment and research, blended with a baseline willingness to spend on this treatment and research, and less of a tolerance for the lack of existence of certain treatments.
One authority explains, “Life science, it’s a big growth market. It’s a growing need. It benefits from the same healthcare trends, the aging population specifically, that are helping the rest of real estate. In simple terms, older people take more medicine. There’s going to be more of a need to develop therapeutics and deal with conditions that affect the elderly more as the population ages.”
The data in the charts below illuminates this trend. As the senior population grows, demand and spending is projected to grow considerably. These graphics represent the growing population of seniors and how much each age group is spending on healthcare.
Life-sciences spaces reflect one of the few industries that can’t depend on remote work in order to be efficient. Medical research requires physical space and room for equipment in order to operate, and more pharmaceutical companies and biotech firms will need more space in order to do more research. So, as the demand rises, there will be an increasing premium on this class of commercial real estate.
One authority explains, “Life sciences tenants range from pharmaceutical and biotech companies to medical research and medical device firms. Demand for life sciences spaces across U.S. markets has grown by 34% since mid-2020, as the essential nature of this research and development cannot be replicated remotely.”
There is an increasing amount of venture funding flowing to the ag tech industry, and this funding will expect life-science research to expand along with Agtech.
As more projects are put into place, more research space will be necessary. According to one authority, “According to current estimates, 690 million people (about 9% of the world’s population) suffer from hunger. To alleviate global hunger, the UN states that “increasing agricultural productivity and sustainable food production are crucial.” The Agtech industry received $26 billion in venture funding in 2020, more than double the amount invested in 2017.”
The overall capacity for Life Science research is growing, and thus the spaces required for its growth are increasing in their demand. One source explains, “ Today, the approximate market cap of publicly-traded REIT-managed life sciences real estate is about $30.4 billion. The investable universe for life sciences real estate is estimated at $100 billion, which is growing rapidly.”
In the largest U.S. life science clusters (Boston/Cambridge, the San Diego area, and the San Francisco Bay area), laboratory/research & development rents increased about 10% from mid-2020 through the first part of 2021.
This kind of marked increase is a direct indication of demand, and being put upon life science real estate by the surrounding economy. Large cities like the ones listed understand the growing value of life science research and are positioning themselves to become desired destinations for this type of work as national demand grows. This will push forward the value of life science real estate in a circular way.
Some investors prefer to achieve portfolio diversification through emerging asset classes such as international markets or new technologies. Life sciences offer an attractive option for portfolio diversification as they are grounded upon a demonstrated increase in demand within the last few years, and no immediate market events that may serve as jeopardy. With a fast-growing aging population in great demand for new medical technologies and treatments, this is a great option for portfolio diversification.
One authority explains how life science REITs fit into an overall-increasing stock market, “While healthcare spending in the U.S. peaked at $3.8 trillion in 2019, it declined by 2% in 2020 due to the COVID-19 pandemic. However, it started growing again in 2021 and is on track to top $6 trillion by 2028.”
Healthcare spending is increasing as a struggling economy has rebounded, and research for healthcare is increasing in tandem. Subsectors of the overall healthcare market tend to follow the larger trends of the market, not often deviating. As demand for treatment increases, demand for research on ways to modify and improve these treatments will increase, meaning that the desire for space to conduct this research will only grow. Life sciences will trace the trends of the overall trends of disease prevention and vaccines, and so on.
NOYACK intends to be the first mover in the evolution of logistics infrastructure by acquiring and modernizing assets that stand to benefit from emerging trends in Mobility, Micro-Fulfillment & Life Sciences.
Our 30-year investment in relationships with builders and property owners generates discounted pricing opportunities for NLI and our investors. Our unique structure allows NLI to grow through our proprietary UPREIT Exchange Program with property owners and forward-commitment program with developers.
NOYACK Logistics is the simplest, most effective way to build life science REITs into your investment portfolio. Learn more here.
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Under no circumstances will NLI, its affiliates, suppliers, or any others involved in creating this Site and its contents be liable for any damages or injury, including any direct, indirect, incidental, special, consequential, punitive, or other damages resulting from any circumstance involving this Site or its content (including, but not limited to, damages or injury caused by error, omission, interruption, defect, failure of performance, unauthorized use of this Site, lost data, delay in operation or transmission, breach of security, line failure, defamatory, offensive or illegal conduct of any user of this Site, or computer virus, worm, trojan horse or other harmful component), even if you have notified NLI in advance of the possibility of such damage.
The Site, and all of its contents, including but not limited to articles, other text, photographs, images, illustrations, graphics, video material, audio material, software, logos, titles, characters, names, and button icons (collectively the “intellectual property”), are protected by copyright, trademark and other laws of the United States, as well as international conventions and the laws of other countries. The intellectual property is owned or controlled by NLI or by other parties that have provided rights thereto to NLI. No portion of this Site may be reproduced, duplicated, copied, sold, or otherwise exploited for any commercial purpose that is not expressly permitted by NLI. You may browse through the Site and occasionally download small amounts of material appearing on the Site that are of personal interest to you for your personal, non-commercial use. You must keep intact all copyright, trademark and other notices contained in your personal copies. You may not reproduce or allow others to reproduce your personal copies of downloaded materials, nor may you make them available electronically. You may not save or archive a significant portion of the material appearing on the Site. You may not attempt to alter or modify the content posted on the Site. Except as expressly set forth in this paragraph, you may not copy, download, display, distribute, publish, enter into a database, perform, modify, create derivative works, transmit, post, decompile, reverse engineer, disassemble or in any way exploit any of our intellectual property or the Site itself. Other trademarks, service marks, product names, and company names or logos appearing on the Site that are not owned by NLI may not be used without express permission from their owners.
You may not use this Site for any purpose that is unlawful or prohibited by this Terms of Service statement, or cause damage on or through the Site. You promise that none of your communications with or through the Site will violate any applicable local, state, national or international law. Your access to the Site may be terminated immediately in NLI’s sole discretion, with or without notice, if you fail to comply with any provision of this Terms of Service statement.
NLI has no obligation to monitor the Site; however, you acknowledge and agree that NLI has the right to monitor the Site electronically from time to time and to disclose any information as necessary or appropriate to satisfy any law, regulation or other governmental request, to operate the Site, or to protect itself or other users of the Site.
NLI reserves the right, in its sole discretion, to modify, suspend, or terminate the Site and/or any portion thereof at any time for any reason with or without notice to you. NLI shall not be liable to you or any third party for any termination of your access to the Site.
You agree to indemnify, defend, and hold harmless NLI, its subsidiaries, agents, distributors and affiliates, and their officers, directors and employees from and against any and all claims, actions, demands, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees, resulting from your use of the Site in a manner that violates or is alleged to violate these Terms of Service, any applicable law, or any warranty you provide herein, or otherwise arising in any way out of your use of the Site. NLI reserves the right to take exclusive control and defense of any such claim otherwise subject to indemnification by you, in which event you will cooperate fully with NLI in asserting any available defenses.
The Site may contain links to Web sites operated by third parties and may also provide third party content on our Site by “framing” or other methods. NLI does not monitor or control the content of any linked or framed sites and makes no representations regarding, and is not liable or responsible for, the accuracy, completeness, timeliness, reliability or availability of any of the content uploaded, displayed, or distributed, or products or services available at these sites. If you choose to access any third-party site or rely on information found within third party content appearing on this Site, you do so at your own risk. The presence of a link to a third-party site does not constitute or imply NLI’s endorsement, sponsorship, or recommendation of the third party or of the content, products or services contained on, or available through, this Site.
Except as described below in this Site’s Privacy Policy, any material, information or ideas you submit to this Site will be deemed a grant of a royalty free, exclusive, sub licensable (through multiple tiers) right and license to use, reproduce, cache, modify, display, publicly perform, transmit, adapt, publish, translate, create derivative works from and distribute these materials throughout the universe in any medium and through any methods of distribution, transmission and display whether now known or hereafter devised. In addition, you warrant that all publicity rights and so-called “moral rights” have been waived. If any court determines that NLI does not retain exclusive ownership of any such material, information, or ideas, then NLI retains a non-exclusive license to use them.
NLI’s practices and policies with respect to the collection and use of personally identifiable information are governed by our Privacy Policy.
If you have questions regarding the Agreement or the practices of NLI, please contact us through our website: noyacklogistics.com.
Noyack Logistics Income REIT, Inc. “NLI” is committed to maintaining strong privacy protections for our users. Please read the information below describing the steps we take to ensure the privacy of your personally identifiable information. This Privacy Policy also explains your choices for managing information preferences, including opting out of certain uses of your personal information. Should you have any questions or need assistance in exercising any of your choices under this policy, please contact us at (813) 438-6452.
By accessing noyacklogistics.com you accept our Privacy Policy and Terms of Service, and you consent to our collection, storage, use and disclosure of your personal information as outlined below.
When using noyacklogistics.com, we may collect the following information:
Contact Information: When you contact us using our online contact form, we collect the messages you send as well as the personal information you provide, such as your name, phone number, and email address.
Application Information: We require certain personal information when you apply online for an Investor account. In addition to basic details such as your name, email address, and phone number, we may require information to verify your identity, such as your social security number and driver's license number.
Log Data: When you access and use our website, we automatically record information concerning the device you are using and your activity on the Websites. This may include your device’s Internet Protocol (“IP”) address, your browser type, the types of information you search for and view on our website, locale preferences, location, identification numbers associated with your device, and your mobile carrier. If you arrived at our website by clicking on an advertisement, promotion, or search result on another website, we also take note of the web page you visited before you came to our website.
Cookies: A “cookie” is a small data file that is transferred to your device. We use cookies to collect information to study, enhance and improve the use and capabilities of our website. We also use cookies to enable certain features of our website and to preserve your preferences and customize your experience when you visit and return to our websites. In addition, we and third parties acting on our behalf also use cookies to perform certain online advertising and analytics functions (discussed further below). Most browsers provide controls whereby you can choose to block receipt of cookies, delete cookies, or to be prompted before cookies are received. Please note that, if you delete or choose not to receive cookies from our website, the functionality of the websites may be impaired.
Geo-Location Information: Many mobile devices permit applications to access real-time location-based information. [As of the effective date of this Privacy Policy, our mobile applications do not collect such information. However, we may do so in the future, with your consent, in order to enhance the features and functionality of our website and financial service offerings.] In addition, some of the information we already collect, such as IP addresses, may be used to estimate an approximate location of the device you are using to access our websites. Additional information may be collected during your use of our website, or when we communicate with you via telephone, email or other means.
If you complete the account registration process, NLI or our business partners may collect information from third parties to verify your identity and bank account information and assess risks related to your account.
We use your information to verify your identity, provide you with quality customer service, evaluate your request for an Investor account and improve our website. We may be obligated by law to retain certain communications and other information concerning you. In addition, we may retain and use communications, transaction details, and identifying information to maintain audit trails for security and anti-fraud purposes.
NLI does not share information concerning you with unaffiliated third parties for marketing purposes. However, we may use your personal information to present you with information concerning offerings that may be of interest to you, via email.
Please note, the receipt of marketing communications via email is voluntary. If you do not wish to receive these communications, you may opt out at any time. To opt out please follow the steps below or contact us at (813) 438-6452 for assistance. If you choose to opt-out, you will continue to receive administrative emails from us.
We disclose information concerning you as necessary to run our everyday business, such as in connection with the movement of funds. We also may disclose information concerning you if required to do so by law or if we believe that such action is necessary to comply with a legal obligation.
Like many website operators, we use services offered by third parties (including, but not limited to, Google, Twitter, and Facebook) to advertise on third-party websites based on search terms used by you and your visits to our website. We also receive relevant history and website usage information and information about your receipt and use of marketing emails from us collected by those third parties, including search terms that direct visitors to our website, and we use that information to improve our website and for our own marketing purposes. Those third parties use cookies, web beacons, pixels, or similar technology to provide these services to us and to serve ads and customize search results based in part on your visits to our website. You can set preferences for Google services using the Google Ad Settings page, and you can opt-out of Google Analytics’ use of data by installing a browser ad-on available here [add link]. You can find information concerning personalized ads delivered by Twitter, as well as an opt-out from interest-based advertising, here [add link]. Other tools for opting out of targeted advertising are the Network Advertising Initiative (NAI) Opt-Out Page and the Digital Advertising Alliance (DAA) Consumer Choice Tool. Note that if you opt-out on the NAI page, or using the DAA tool, you will still see advertisements when you browse the Internet, but those advertisements may be less tailored to you and your interests. Currently, various Internet browsers offer a “do not track” or “DNT” option that uses a DNT header to indicate the DNT preference setting on the browser. Because standards for DNT continue to evolve, we do not currently respond to browsers’ DNT signals with respect to our website. We do not track your activity over time and across different websites or online services. The third parties that collect data through our website and marketing emails may combine the data with other information they collect about your online activities over time, on other devices, and on other websites or apps, if those websites and apps also use the same third parties. We do not permit third parties to collect information from our website for other websites or for their own purposes, except on a limited basis in connection with the analytics and advertising discussed in the preceding paragraph.
NLI is committed to maintaining the security of your information. When you supply information to us through our website, we use TLS (Transport Layer Security) or SSL (Secure Socket Layer) protocols to secure the transmission of information. Once we receive information, we store and protect it using industry-standard firewalls and other technology. Please remember, though, that no method of electronic transmission or storage is 100% secure.
The NLI website is not intended for use by children under the age of 13. In order to use our services, you must be 18 years of age or older.
Customers can opt out of receiving marketing solicitations by emailing us at https://noyacklogistics.com/contact/
We may need to make changes to our Privacy Policy from time to time, to reflect changes to our website or services, to accommodate new technology or legal requirements and guidelines. We will notify you of significant changes to our Privacy Policy by sending a notice to the primary email specified in your account. Significant changes will go into effect 30 days following such notification. Any immaterial changes or clarifications will go into effect immediately. We urge you to periodically check the website for updates.
NOYACK Logistics Income REIT operates a website at noyacklogistics.com.
By using the Platform, you accept our Terms of Service and Privacy Policy.
Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss.
While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties.
Neither NOYACK nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence.
Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances.
Neither NOYACK nor any of its affiliates assume responsibility for the tax consequences for any investor of any investment.
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS. YOU SHOULD READ THE OFFERING CIRCULAR
Full Disclaimer: The material contained herein does not constitute an offer to sell or a solicitation of any offer to purchase shares of stock in NOYACK Logistics Income REIT, Inc. (“NLI”), nor shall there be any sale of such interests in any state or other jurisdiction in which such offer or solicitation would be unlawful. Offers for the sale of any such shares will only be made to investors, who meet certain suitability standards, pursuant to the NOYACK Logistics Income REIT, Inc. Confidential Private Placement Memorandum (the “Memorandum*), which will be distributed by NLI at such time, if any, as it commences the offering of its shares of stock. Investments in NLI’s shares are not suitable for all investors. Investments involve a high degree of risk and should only be considered by investors who can withstand the loss of their entire investment. Prior to purchasing any such interests, prospective investors should carefully review the Memorandum, including the “Risk Factors” section, and any supplement thereto. Investors should perform their own investigations before considering an investment in such interests and consult their own legal and tax advisors. The information contained herein is qualified in its entirety by reference to the Memorandum. The past performance of NLI’s affiliates described herein is not indicative, nor a guaranty, of NLI’s future results and no assurance can be given that any of NLI’s investments will be liguidated on similar terms as those described herein or at a profit, or the amount of profit, if any. Accordingly, there is no guarantee that NLI’s performance will be similar to the prior performance of affiliates of NLI. The information contained herein is strictly confidential and only intended for the recipient and may not be redistributed without the prior consent of NLI. You may not disseminate, disclose or engage in any business activity based upon or otherwise use the information herein for any purpose other than an evaluation of a potential transaction described herein. You should conduct your own independent analysis of the information contained or referred to herein. Nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past, present or future. You acknowledge and agree that NLI and its representatives are under no obligation to accept any offer or proposal by any person or entity regarding a potential transaction. While NLI expects to seek a liquidity transaction, there can be no assurance that an acceptable transaction will be available or that the market conditions for a transaction will be favorable during that time period. As a result, investors may be required to hold their Shares beyond the projected liquidity date. Private securities offerings are not registered with the SEC and are considered highly speculative. An investment in private securities is speculative, involves a high degree of risk and may result in the loss of your entire capital contribution.