Private-Market Real Estate Potentially Offers Stock-Like Performances With Bond-Like Security. Individual Investors Can Now Get Transparent, Institutional-Grade Access to a $12B+ Portfolio

Benzinga Money is a reader-supported publication. We may earn a commission from the advertisers associated with this article. Read our Advertiser Discloser. The NCREIF Property Index, an index of U.S. institutional private real estate, has produced nearly 9% annualized returns over 45+ years with ~7% coming from steady income, and had positive annual returns in 41 of the past 45 years. By this index, private real estate has also exhibited less volatility than stock market indices for many periods since NCREIF data began.It also provides a hedge against inflation or other macroeconomic risk factors, since private real estate has historically exhibited far less correlation with stocks or bonds than public REITs or other major asset classes. While many crowdfunding platforms have promised investors access to this $13T market, issues such as poor risk controls, lack of transparency, misalignment with sponsors, and fee-heavy structures have caused individual investors to balk at the opportunity. With a four-decade track record and $12B+ portfolio, Lightstone DIRECT goes beyond the crowdfunding model. Their direct-to-manager approach cuts out middlemen and aligns interests while providing institutional-grade access to individual accredited investors. Since 2004, Lightstone has generated outsized performance of 27.6% Historical Net IRR and 2.54x Historical Net Equity Multiple across 56 realized investments.What’s more, Lightstone coinvests a minimum of 20% in each Lightstone DIRECT deal, aligning their outcomes with investors.Highly sought-after real estate investments are now within reach.The Lightstone DIRECT Advantage, and the First Investment Opportunity Lightstone’s industrial and commercial portfolio spans over 15 million square feet across 26 states, providing deep insights into underlying fundamentals for logistics and manufacturing to inform new investment decisions with confidence. Their business plans often focus on preserving strong in-place income while executing targeted leasing, capital, and asset management initiatives to enhance long-term value. One example is Lightstone DIRECT’s newest investment opportunity, Abernathy Industrial. The six-building industrial property in Greenville-Spartanburg, South Carolina, is 100% occupied, providing immediate cash flow distributions with a projected 15.2% net IRR, and 7.7% annual net cash-on-cash return to individual LPs during the planned four-year holding period. With stable in-place cash flow, limited supply, and rising demand, Abernathy offers individual investors the opportunity to partner with an experienced, well-capitalized manager that is directly aligned through significant co-investment. At a time when many individual investors may feel long on multifamily investments, Lightstone’s industrial offerings may hold timely appeal.Lightstone DIRECT Goes Beyond the Crowdfunding Model In the rush to scale their operations, many real estate crowdfunding platforms had loose or nonexistent risk controls that led to investors being defrauded. Others offered overly optimistic returns – 25% IRRs or more – only to underdeliver and in some cases even lose investors’ money. A lack of transparency in how these platforms operate, along with layered fees that eat into investors’ returns, are other reasons why many individual investors have become wary of these opportunities.With Lightstone DIRECT, investors are working directly with a well-established real estate firm that holds a $12B+ portfolio of multifamily, industrial, hospitality and other properties (over 25,000 residential units, 3,100 hotel keys, plus retail, office, and life science sites). Other platforms require an intermediary or third-party operator, which may result in higher fees and a greater risk of misalignment. Lightstone’s commitment to put 20% of equity into each deal proves that it has skin in the game, and that these are investments Lightstone would make, with or without capital from individual investors. The company has a four decade track record in real estate dating back to the 1980s and has operated through multiple recessions, credit crises, and recoveries. Qualified individuals can enjoy direct access to investment opportunities on carefully vetted properties with clear terms. With Lightstone DIRECT, accredited individuals can access the same single-asset multifamily and industrial deals that Lightstone pursues with its own capital.All investments involve risk. Past performance does not guarantee future results. Invest in Lighthouse Direct TodayBenzinga is compensated for publicizing this content. Please read 17b disclosures here. Disclaimer: Please be advised that alternative investments carry a risk of monetary loss. Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. All information contained on this website is provided as general commentary for informative and entertainment purposes and does not constitute investment advice. Benzinga will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on this information, whether specifically stated in the above Terms of Service or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.