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Something unusual is happening in commercial real estate. This is a moment that comes once every 15 years. Prices start rewarding buyers in a big way. And buyers who understand market cycles start assembling their war chest.
Prologis (NYSE:PLD) increased their asset stake since 2008 and their stock is up 950%. Till 2021.
American Tower Corp (NYSE: AMT) did the same, and their stock soared 910% In that time period.
Finally, Crown Castle (NYSE: CCI) surged 1,300% following similar buying activity.
Today, they are some of the world’s largest industrial real estate owners, worth between $40 billion and $120 billion.
Now, the market is aligning again. This time, AARE is letting everyday investors get in on the action,
What makes AARE’s opportunity even more interesting is that they are not a public REIT yet. Like mutual funds for real estate, REITs (real estate investment trusts) allow investors to invest in large-scale property portfolios made up of income-producing real estate that is owned, operated and/or financed by the trust.
And AARE is still at a ~$39 million valuation, when their publicly traded peers are valued at more than that 100x. Such a huge valuation gap means AARE investors have reverse chance except for Classic Income REIT Investing,
A REIT Portfolio Took 20+ Years to Build
AARE has spent the last 20+ years building the ideal commercial real estate portfolio. With over $2.75 billion of real estate transactions, the REIT strategy is straightforward:
- Acquire income-producing commercial properties at discounted prices.
- Build a diversified portfolio for steady, long-term income.
- distribute till 100% of taxable income to shareholders,
The company is targeting dividend payments within 24 to 36 months. The company says this is based on actual performance, as they are already generating cash flow and recurring revenue of over $7 million.
Additionally, the company says that up to 75% of their investor capital is invested in hard assets, providing AARE with solid value. And now that the commercial real estate market is in buyers’ favor, AARE is adding even more. For investors, this means stakes in high-income generating residential and commercial properties.
That’s why now is the time to do it add them,
Real estate’s next ‘1,300%’ moment is underway
Between now and 2027, trillions of dollars of commercial loans, including approximately $162 billion of multifamily loans, will come due. Many owners cannot refinance at today’s rates. When the loan matures and refinancing is not an option, sellers always have no choice.
Image Credit: Hey
Since the end of 2021, apartment building values have fallen by nearly 25%. This is a major change after a decade of steady growth.
Image Credit: Hey
Construction costs have also skyrocketed due to inflation and labor shortages. At the same time, building prices have fallen. it has created A promising scenario for buyers: Existing properties now cost less than building new properties. This is called buying “below replacement cost,” which is a classic pricing signal in real estate.
Image Credit: Hey
Result: some most valuable real estate 30% to 40% discount is available in the market.
Finally, interest rates have shaped the market over the past few years. From 2022 to 2024, the Federal Reserve raises rates at a historic pace. This increased borrowing costs and put pressure on property values in the commercial real estate market. But now the cycle is turning.
As the Federal Reserve begins to lower rates, funding conditions may gradually improve. This change has the potential to create a tailwind that could turn disciplined acquisitions into value if the market improves.
AARE investment opportunity
While booms and earnings are never guaranteed, one thing is clear: commercial real estate is getting revalued. AARE has seen this cycle before, and now they’re acting on it.
Engaging everyday investors is an important part of this mission. They are creating long-term value by sharing access and income more widely. and their liberal capitalismTM The initiative takes this even further, ensuring that a portion of the company’s profits are donated to carefully vetted charities. This way, investors can participate in making a meaningful impact on the community as well as owning income-generating properties.
But there is another factor that separates AARE from typical REITs. They have a complete services division that can generate revenue along with the real estate portfolio. With the ability to pay special dividends in addition to REIT income, it has been in operation for 20+ years.
The company says AARE has already expanded into 25 states and plans to continue expanding into all 50 states as soon as possible with its real estate services arm.
Historically, such opportunities in commercial real estate deals were blocked by profit-eating middlemen and fees. AARE is choosing a different path. By opening their portfolios to everyday investors before they become public REITs, they are allowing individuals to participate first.
Learn more about becoming an AARE shareholder here,
This is a paid advertisement for the AARE Regulation CF offering. Please read the offering circular here
Investments in private placements, and particularly start-up investments, are long-term, illiquid, speculative and involve a high level of risk and investors who cannot afford to lose their entire investment should not invest in start-ups.
Something unusual is happening in commercial real estate. This is a moment that comes once every 15 years. Prices start rewarding buyers in a big way. And buyers who understand market cycles start assembling their war chest.
Prologis (NYSE:PLD) increased their asset stake since 2008 and their stock is up 950%. Till 2021.
American Tower Corp (NYSE: AMT) did the same, and their stock soared 910% In that time period.
