Investing in real estate can be a lucrative venture, especially when it comes to industrial properties. If you're considering entering the market, Ares Industrial Real Estate Income Trust (AIREIT) is a prime option worth exploring. Managed by Ares Management, a leading global alternative asset manager, AIREIT provides individual investors with access to a diversified portfolio of high-quality industrial real estate assets.
What Sets AIREIT Apart?
AIREIT focuses on investing in bulk and last-mile distribution facilities strategically located in key logistics markets across the United States. This targeted approach allows investors to capitalize on strong market fundamentals, including robust rent growth, low vacancy rates, and high demand for industrial spaces. In fact, industrial real estate has outperformed other sectors in recent years, making it an attractive investment opportunity.
The primary investment objectives of AIREIT are to provide consistent distributions, capital preservation, and capital appreciation. Achieving these goals is made possible through a meticulous four-step investment strategy: target markets, property identification, portfolio construction, and portfolio management.
AIREIT Portfolio Highlights
As of November 2023, AIREIT boasts an impressive total asset value of $8.9 billion. The portfolio comprises 256 buildings distributed across 29 geographic markets within the US. With a net rentable square footage of 54.0 million, the portfolio maintains an impressive occupancy rate of 97.8% and serves 431 tenants.
Geographically, AIREIT focuses on high barrier-to-entry locations near major distribution hubs, ensuring proximity to densely populated areas. The portfolio is 100% dedicated to industrial real estate, offering investors a reliable avenue for exposure to this thriving market.
AIREIT Performance and Investment Requirements
AIREIT's performance has been impressive since its inception on November 1st, 2017. Different share classes have generated varying returns, providing investors with options that suit their individual investment goals. Minimum investment amounts start at $2,000 for Class T, Class S, and Class D shares, making AIREIT an accessible choice for investors.
To ensure the fund's liquidity, AIREIT repurchases shares at net asset value. However, please note that AIREIT is a private, non-publicly traded investment fund, limiting the level of liquidity it offers. Therefore, it's essential to carefully consider your investment horizon and requirements before committing to AIREIT.
AIREIT Fees and Costs
When investing in AIREIT, it's crucial to be aware of the fees and costs associated with the fund. These include advisory fees, asset management fees, performance participation allocation, development fees, and share class-specific fees. The specifics of these fees can be found in Table 4 of the original article.
How to Invest in AIREIT Shares
Accessing AIREIT shares depends on the share class you are interested in. Class T and Class S shares are available to the general public, while Class D and Class I shares have specific eligibility requirements. To invest, individuals typically work with investment advisors from renowned wealth management firms or online alternative investment platforms.
Investing in industrial real estate through AIREIT provides a unique opportunity to diversify your portfolio while benefiting from the expertise and track record of Ares Management. With a focus on consistent distributions, capital preservation, and capital appreciation, AIREIT is an attractive option for individuals looking to invest in the dynamic industrial real estate market.
Interested in industrial real estate investment? Consider AIREIT today and unlock the potential of this thriving sector.
Disclaimer: Investment in AIREIT carries risks. Please consult with a financial advisor before making any investment decisions.