Crew Campus Private REIT Announces Incentive Program, Changes to Offering
Crew Campus Private REIT is announcing a performance fee waiver incentive program to benefit early investors in their newly launched private real estate investment trust. Following Crew Campus’ announcement in February 2024 of the acquisition of a 297-bed seed asset located near Baylor University, investors can receive additional benefits due to the launch of the incentive program and changes to the offering.
“Investors who are accepted into the Crew Campus Private REIT during incentive periods will no longer be subject to the performance fee typically earned by the adviser,” comments Jeff Daly, chief executive officer of Crew Campus. “This incentive program fee waiver applies to the life of the investor’s investment; the original investment, as well as investments pursuant to the [dividend reinvestment plan].”
Beyond the incentive program, Crew Campus is making several changes to the offering. First, there will be no disposition fees associated with the sale of private REIT assets. Second, the adviser’s performance allocation is being updated. The original PPM contemplated an 80/20 performance split, in favor of the investor, after achieving an 8% hurdle rate. This has been updated to 87.5/12.5 after a 5% hurdle. Finally, the minimum investment requirement is being reduced from $25,000 to $5,000.
“Crew Campus REIT is a pure play student housing private REIT option for investors looking to build a diversified real estate portfolio,” shares Daly. “These changes introduce an institutional pricing model that aligns the adviser and investors interests evenly.”
According to Crew Enterprises, student housing is an ascendant asset class in the early stages of institutional adoption. Both larger institutional and cross-border investors are attracted to the category due to its favorable supply/demand characteristics as well as the sector’s stability and cash flows.
Beyond the changes to the offering comes a rebranding of the private REIT asset. The property, previously called Oso Verde Apartments has been renamed The Green at Waco, an homage to the city in which the property is located along with its proximity to Baylor University.
“We thought it was fitting to give the property a refreshed brand identity,” states Blake Wettengel, CEO of Crew Enterprises. “The property has been around since 2015, and with our reinvigorated corporate identity here at Crew Enterprises, we felt a new name for our first portfolio asset was a way for us to signal to investors our ability to continuously improve our properties and the experiences we provide for tenants.
Crew Enterprises, formerly Versity Invest LLC, is a privately held California-based real estate company specializing in acquiring and operating student and multifamily housing properties. The investment firm and its affiliated companies own or manage 35 student housing and multifamily properties located throughout the United States, totaling approximately 4,500 units and over 10,500 beds. Located in Orange County, Calif., Crew Enterprises has a portfolio valued at nearly $2 billion across 16 states.
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