Disclosure: Our goal is to feature products and services that we think you'll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
Something unusual is happening in commercial real estate. It’s a moment that comes around once every 15 years or so. Prices start to massively reward buyers. And buyers who understand market cycles begin assembling their war chests.
Prologis (NYSE: PLD) scaled their property holdings after 2008, and their stock gained 950% by 2021.
American Tower Corp (NYSE: AMT) did the same, and their stock gained 910% in that time period.
Finally, Crown Castle (NYSE: CCI) gained 1,300% after similar buying activity.
Today, these are some of the largest industrial real estate owners in the world, valued between $40 billion and $120 billion.
Now, the market is aligning again. This time, AARE is letting everyday investors in on the action.
What makes AARE’s opportunity even more interesting is that they’re not yet a public REIT. 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 stilll at ~$39 million valuation, when their publicly traded peers are valued at more than 100x. A valuation gap this large means AARE investors have a chance at upside in addition to the classic income REIT investment.
A REIT portfolio 20+ years in the making
... continue reading