On a Mission to End Economic Inequality for Investors

Globe St: Noyack’s New REIT Takes Broad Approach to Logistics Investment

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

Portland Mobility Hub Case Study

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.

Investment Thesis

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.

Deal Stage

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.

Debt Strategy

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.

Operational Improvements

NOYACK posits that there are three key questions that must be answered when underwriting a property:

  1. Is this an attractive entry price relative to future returns?
  2. Can we operate the property in a way that improves profitability as currently constituted?
  3. Can we enhance and add to the existing revenue sources as well as improve the future value of the asset by repositioning into a more expensive asset class?

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.

Value Creation: Category Transformation

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.

Technology Improvements

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.

Takeaways

NOYACK exceeds return expectations for its investors in several ways:

  1. Determination – amidst a financial crisis, they purchased a property that they believed in and continued to invest in it, eventually turning it into a successful business. Found a local lender who cared about the region in Portland. We convinced them of our acumen and seriousness of longer term relationship Came up with money, assumed existing smaller loan, found replacement loan from a local bank.
  2. Creativity – they were able to see the potential in repurposing the property into a new asset class, which led to increased profitability.
  3. Continuous improvement – discovering an engineering flaw led to them enhancing their due diligence process.
  4. Technology Savvy – using automation, they were able to improve the efficiency and profitability of the property.

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 on Repositioning Distressed Assets with IMN

Adaptive Reuse & Best Practices in Repositioning Distressed Assets @ NYC Distressed CRE Forum

CJ Follini speaks with IMN alongside Christian Dalzell from Counter Management, Will Johnston from White & Williams, and Nadir Settles from Nuveen.

What the Best REITS for Retirement Income Have in Common 

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.

Characteristics of the Best REITs for Retirement 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.

High Dividend Yields And Other Benefits

Growing investment concept symbolizing high dividend REIT yields

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.

Get The Benefits of Real Estate Investment Without Managing a Property Directly

Building technology and business real estate investment. Businessman holding buildings on hand

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.

Resist Inflation While Retaining Stability

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.

NLI: The Choice for Investors Who Want a Hands-On, Effective and Transparent REIT

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.

Choosing NLI For Retirement Income

Happy senior couple during the meeting with financial consultant,

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.

Life Science Case Study

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:

  • Complex F/G assembly
  • CNC machining
  • Laser processing
  • Packaging and labeling

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.

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6 Benefits of Life Science REIT Investments

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.

Growing Market and Demand Created by Aging Population

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.

Future Demand Increase For Life Sciences Spaces

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.” 

Life Sciences is Involved in Other Emerging Focus Areas Like Agricultural Tech (“Agtech”)

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.”

Investments for Life Science Space are Growing Along with Capital Flow

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.”

Resilient Occupancy Rates and Rents

Interior of chemical factory or plant workshop with metal industrial manufacturing production equipment

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.

Portfolio Diversification

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 Logistics Income REIT

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.

 

REITs That Accept Cryptocurrency: NOYACK Logistics Income Embraces Blockchain Technology

Through NOYACK’s partnership with BitPay, NOYACK Logistics Income (NLI) is the first REIT that supports cryptocurrency investment in real estate. A wide range of investors can now fund their commitment to NOYACK’s Logistics Income (NLI) REIT with cryptocurrency or a combination of crypto and traditional currency. 

Combining innovation in commercial real estate investments with the opportunity to invest using crypto funds, NOYACK, led by founder and Managing Principal, CJ Follini,  is at the forefront of real estate investment and REITs along with crypto, offering an excellent ROI from real-world logistics and commercial property.

What is NOYACK Logistics Income REIT?

NOYACK Logistics Income is a real estate investment trust (REIT) that invests in diversified supply chain real estate properties. The portfolio includes mobility hubs bringing together several forms of transit that support “last mile” delivery for eCommerce, including goods and services. NLI balances investment security with a target investment rate of return (IRR) of 18 to 20 percent.

NOYACK Logistics Income benefits from a strong investment thesis: eCommerce has grown over 140% between 2017 and 2022, but corresponding investments in the real estate infrastructure that support it have only grown by 25%. The supply-demand gap means that revenue from commercial real estate and logistics will only continue to grow over the next ten years.

NOYACK’s 38 years of successful investment in the sector have led to its creation of proprietary algorithms: PropertyQuotient™ and MarketQuotient™. The algorithms target investments in mobility hubs, along with warehouses, cold storage, and other commercial real estate opportunities. Particular areas of interest within NLI include fast-growing sectors like autonomous vehicle infrastructure, same-day delivery services, and climate-controlled storage.

Advantages of Investing in REIT with Cryptocurrency Funds

According to Stephen Pair, BitPay CEO, “we see more investors asking to move cryptocurrency allocations into physical assets like real estate.” Pair estimates that moving the cryptocurrency economy into the real world represents at least $55 billion (USD) in purchases over the next year. Diversifying investment portfolios with cryptocurrency and real-world commercial real estate assets has been made easier and accessible with this pioneering initiative.

NOYACK’s BitPay integration enables investors to divide their investment between cryptocurrency and fiat currency. They can select their preferred wallet or coin exchange, scan a QR code, and complete their investment. The resulting flexibility enables investors to balance their portfolios between cryptocurrency exchanges and a real-world real estate investment trust. The BitPay integration allows retail investors to include real estate investment assets along with cryptocurrency in retirement accounts or other investment funds.

Inflation’s Impacts on Real Estate Investments and Other Investments

It has been several decades since inflation rates have risen to 6 to 7% or higher. NOYACK Logistics Income has been created to provide an investment rate of return significantly higher than potential inflation rates: 18% to 20%. Historically, REITs in general perform well during times of high inflation.

Commercial real estate investment trusts perform even stronger against inflation than residential or other types of REITs. Combined with CJ Follini’s  38 years of experience in commercial real estate investment, NLI is designed to successfully outperform inflation and deliver reliable cash flow. NOYACK Capital is also committed to providing investment education along with its revolutionary alternative investment platform, making institutional-grade private investments, including long-term opportunities, accessible to all investors.

Opening a Private REIT to All Investors

NOYACK Capital is the fastest-growing alternative investment platform, with a goal of opening economic opportunities in the real estate market and delivering excellent investment performance to retail investors. Some real estate investment trusts (REITs) focus on institutional entities such as pension funds or endowments. NOYACK Logistics Income is open to accredited investors, family offices, institutional investors, registered investment advisors, and other qualified purchasers.

By partnering with BitPay, investors with digital assets can fund their commitment to NOYACK Logistics Income with cryptocurrency payments, including Bitcoin Cash (BCH), Ethereum (ETH), Dogecoin (DOGE), and more.

Invest With Confidence Using Cryptocurrency and Traditional Currency

Through NOYACK Capital’s partnership with BitPay, you can invest in real estate using cryptocurrency in the first blockchain-accessible REIT, NOYACK Logistics Income. This partnership makes NLI one step closer towards tokenizing real estate

It’s simple to complete your investor form and define your investor profile. Investigate next-generation investment opportunities including blockchain-based real estate and more with NOYACK Capital today.

The Rise of the Mobility Hub

The Rise of the Mobility Hub

Today nearly 55% of the world’s population lives in urban areas and the UN estimates that in the next 25 years this number will grow to nearly 70%. This growth will inevitably put new demands on urban infrastructure and logistics—so how are cities, innovative companies and investors responding?

Reduce, Reuse, Repurpose

Today nearly every type of traditional commercial and retail space is being repurposed and reinvented for new and innovative uses—a trend accelerated by the global pandemic. In fact, The CCIM Institute forecasts that adaptive reuse of retail centers and malls will be the most impactful trend for retail between now and 2025.  Empty storefronts are being repurposed as ghost kitchens and micro-fulfillment centers, while larger, “dead” retail spaces are being turned into schools, event spaces and eCommerce distribution centers.

This major shift in how existing retail and commercial space is being used includes parking garages as well. Growing urban populations increasingly rely on public transportation. Urban planners are challenging decades-old zoning laws that set arbitrary parking minimums and experts predict that the American need for plentiful parking will decrease significantly in the coming years, with developers and planners shifting their focus to market-driven parking strategies for urban areas. The US currently has more than 2 billion parking spaces for only 250 million cars—that means a lot of very valuable real estate, especially in urban areas, is sitting empty. So, what will become of the urban parking garage as we know it? 

Introducing The Mobility Hub / Reintroducing
NOYACK Logistics is preparing for a paradigm shift in parking. Centrally located and with vast, underutilized square footage, structured parking garages  are ripe for reinvention as Mobility Hubs. Mobility Hubs are part flexible parking garage, part fulfillment center, and part fleet management depot for ride-sharing services and last-mile delivery—developed and operated right where the customers are in the urban core rather than the urban periphery. 

Mobility Hubs address a number of logistics issues unique to urban centers—from easing large truck and curbside delivery congestion to creating short-term, flexible ‘holding areas’ for rideshare and delivery vehicles. For businesses, they offer the potential for flexible expansion space, climate-controlled storage and last-mile fulfillment. They also enable faster delivery of goods and services for customers.

But What About Parking?
So what happens when parking garages are used for things other than … parking? Will fewer spaces make it harder to park? The research predicts this will not be the case. 

Independent think tank ReThinkX forecasts that by 2030 private car ownership will drop by 80% in the U.S., and the number of passenger vehicles on roads will decrease from 247 million in 2020 to 44 million. Furthermore, the eventual shift to autonomous vehicles will create a surplus of spaces by optimizing parking in under-utilized areas and decreasing the amount of time cars sit idle. as new networks for shared, electric and possibly autonomous vehicles grow, the demand for private cars and parking will continue to shrink

It’s All About Value 

Reinventing “dead” commercial space like parking garages into innovative Mobility Hubs can create value in many ways. Yes, they’re good for business, generating new income for commercial landlords and supporting the municipal tax base,  but they also create intangible value above and beyond ROI. Repurposing existing structures reduces material waste and energy consumption and supports the growing need for electric vehicle charging hubs and ride-share programs. 

Mobility Hubs also create value for businesses: flexible, affordable space for fulfillment and last-mile delivery to consumers. 

Urban communities will also benefit from the value that Mobility Hubs offer. Benefits that go beyond faster delivery of goods and services and include reduced traffic congestion, noise and environmental pollution thanks to the Hub’s staging area for delivery trucks and rideshare vehicles. 

For more information about how Noyack Logistics is investing in new Mobility Hubs, click here. 

Why Should You Invest in a US Logistics REIT 

 

Economic times are changing and interest rates are rising. Investors can use several strategies to reduce inflation risk. Real estate investment trusts (REITs) are one way to provide steady cash flow as well as competitive long-term returns.  Unlike bonds, interest rates and real estate prices are not inversely related. Real estate value goes up, hand in hand, with inflation and rising interest rates because RE managers have the ability to raise rents. 

Within the REIT sector, there are some options that provide better assurance of a strong yield rate, especially logistics and warehouse REITs in the US  that invest in industrial assets. Here are some of the reasons to consider investing in not just any REIT, but a U.S. Logistics REIT.

REITs Have Performed Well in Times of High Inflation

REITs are an effective hedge against inflation because rent is typically more predictable than other essential living expenses. Long-term leases generally have built-in protection from inflation, and short-term leases are normally based on the current market. Furthermore, REITs maintain a portfolio of leases, some of which they renegotiate each year, allowing them to change the price even on long-term leases. REIT portfolios also appreciate in addition to price increases on leases since REITs own the properties in their portfolios.

According to Nareit, REITs have historically delivered good market returns and had a good fundamental operating performance during times of moderate inflation. Nareit’s analysis of REIT performance as compared to the S&P 500 between the 1970s and now shows that REIT returns outperformed the stock market in 56% of 12-month periods with high inflation, and over 80% of the 12-month periods that had high inflation that was continuing to go up.

According to Nareit, “REIT returns have been resilient through many separate periods of moderate inflation.” During the most recent 12-month period analyzed, total REIT returns for U.S. investors were 45%, significantly higher than the Consumer Price Index (CPI) growth of 6.2%.

The way that leases work in any real estate sector contributes to the ability of REITs to offer reasonable protection during inflation. Long-term leases have inflationary protection built in. Short-term leases also respond to inflation and can increase with the consumer price index. When it comes to specialized REITs that invest in industrial logistics or other industrial REIT investment vehicles, leases are also long-term and have built-in inflationary protection.

A U.S. Logistics REIT Can Provide Competitive Long-Term Returns

Investors receive the benefits of real estate investment along with the advantages of investing in stock when they invest in a REIT. REITs provide annual dividend-based income and investment returns that are typically higher than the stock market.

Each year, REITs must distribute 90% of their taxable income in the form of dividends. At the same time, they also produce long-term appreciation in share prices. The long-term results in share price growth that REITs can and do achieve come from the way they earn money through long-term leases or interest payments on property financing. According to Nareit, REITs provide “investors with historically competitive long-term rates of return that complement the returns from stocks and bonds.”

REITs Have Lower Volatility Rates

When it comes to investment portfolios, volatility is a concern. No one wants to see wild shifts in investment earnings or dividends. While every investment could potentially experience volatility, the way REITs are structured and the types of properties they invest in help to provide more stability in terms of dividend income and long-term earnings. REITs that are linked to equity or mortgages, or hybrid REITs that combine both, are able to weather economic volatility and tend to provide more stable returns and growth.

Logistics and Industrial REITs Can Offer Steady Cash Flow

Industrial and logistic REITs are able to offer steady cash flow for several reasons. They invest in an essential part of the economy that includes light manufacturing facilities that make food and essential products. They also can invest in cold storage facilities, warehouses, and product fulfillment centers.

Income from logistics properties comes from long-term leases, which can extend to 25 years. Industrial leases also usually have triple-net leasing structures. Tenants are not only long-term, they also pay for building insurance, maintenance, and real estate taxes. The result is reliable, steady cash flow to the REIT as well as to investors.

Benefit Portfolio Diversity With a U.S. Logistics REIT

In general, REITs are easy to buy and sell, in contrast to investing directly in real properties. They also have risk-adjusted returns that are attractive with dividends that outperform other types of investments. As part of a balanced portfolio, REITs can offer protection against inflation without the drawbacks of buying and selling real estate directly.

NOYACK Logistics Income REIT is leveraging the investment gap in infrastructure that supports the massive e-Commerce sector which has grown by 140% over the past five years. While e-Commerce businesses have undergone rapid growth and are now considered mature, the underlying infrastructure — warehouses, cold storage, healthcare, life science, and mobility hubs — has only had a 25% increase in investment.

With a target distribution of 6% annual dividends and a rate of 18 to 20% return each year, NOYACK Logistics Income (NLI) is a great choice to diversify investment portfolios. Through NOYACK NLI, investors can receive excellent investment performance with affordable fees at the same time as they are supporting essential parts of the U.S. supply chain and the future of e-Commerce.