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SterlingCIG manages a wide variety of commercial real estate projects and brings on partners to fund these projects. Projects vary from new development to updating and repositioning an existing property.
$50,000 is the minimum investment in SterlingCIG projects.
In many cases, yes. However, each project is different with varying parameters governing the use of profits.
Essentially, limited partnership entails investing in an existing CRE project that is run by a general partner, or GP. The GP takes on the financial risk for the entire project, while the limited partner only takes on risk in proportion to their investment. The flip side is, of course, that the limited partner (or LP) also reaps the rewards in proportion to their investment.
Dive into the details of LP investment here.
Investment and divestment points for each deal are clearly defined prior to securing your stake in a SterlingCIG investment.
For some, CRE investment is protection against inflationary trends. In general, as rents rise, so does the value of a commercial property. Other investors simply want a more diversified portfolio. But, the reality is that investors don’t fit into any single category and often span a broad cross-section of locations, investment goals, and project preferences.
Two reasons: preferred return and preferences. Preferred return means that the first entities to get paid out on any SterlingCIG project are the limited partners (LP). In this way, general partners (GP) are held accountable in making the project pencil out, since they (the GPs) won’t ever see a return if the project doesn’t pay out the LPs first.
The second reason is simply preference: some investors don’t want to have the responsibility of managing CRE projects, whether that be in development and building or in repositioning the asset. In some especially tight real estate markets, even finding a viable deal can be a challenging hurdle for investors.
Each deal has different fee structures, outlined in the offering memorandum and operating agreements.
A typical, anticipated Internal Rate of Return (IRR) over the holding period of the investment is 12 – 18%. Each deal will have specific parameters for returns.
LPs receive a net return wherein all expenses have already been incorporated into investment projections.
If a project fails, everyone loses money – including LPs and GPs. However, SterlingCIG works diligently to mitigate project issues.
Each project is subject to the volatility of the market, as well as things unforeseen events or circumstances. Every project is rigorously vetted and presented with the utmost transparency so investors can level set for their risk tolerance.
