NOYACK Capital announces the launch of Noyack Logistics Income REIT (NLI), a holistic, future-focused private fund targeting logistics-relevant commercial real estate ownership. Its investments will be driven by a disruptive acquisition strategy informed by emerging needs for driverless car infrastructure, same day delivery, climate-controlled storage and other rapidly evolving logistics uses. Currently a private investment fund, NLI intends to qualify as a real estate investment trust, or REIT, commencing with its taxable year ending December 31, 2022, and is structured as an umbrella partnership REIT, commonly called an “UPREIT.”
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NLI will target four key asset classes: Mobility hubs (a newly defined property type that merges structured parking with amenities such as driverless car portals and charging, package lockers and grocery cold storage), cold storage warehousing, dry warehousing, and healthcare.
“Our focus on mobility hubs and other future-forward logistics infrastructure is driven by our point-of-view that these logistics assets are undervalued relative to the market maturity of ecommerce and that they offer asymmetric risk–reward potential,” observes CJ Follini, managing partner.
Designed by investors for investors, NOYACK is a private investment manager founded by family office principals including Follini. NOYACK will seed the UPREIT with an estimated $30 million of its principal-owned industrial and parking assets, creating near-term dividend opportunities. NOYACK has developed NLI’s TripleZero™ fee structure as one of the lowest in the REIT industry; investors are expected to receive 100% of invested capital and a 15% IRR before NOYACK, as external manager, earns any incentive bonus from the profits.
“Our plans for Noyack Logistics Income REIT (NLI) include investing in approximately $500 million of future-forward logistics properties serving consumer and supply chain demands of the 2020s and beyond,” explains Follini. “Recent disruption and technological advances have identified new value we see driving the potential for superior returns. Our proprietary market analytics look beyond the needs we know about for today’s last mile. They anticipate next-mile imperatives for real estate agile enough to adapt to cultural shifts and new technology.”
NOYACK will oversee the initial subscription period commencing immediately through a Private Placement Memorandum available to accredited investors and will also oversee operations of the new UPREIT as external manager. Originally founded by Follini in 2005 to represent and manage investments as a Multi-Family Office, NOYACK has managed over $1.0 billion of alternative real estate and venture capital assets, including assembling and disposing of a $300 million portfolio of healthcare properties.
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As managing partner of NOYACK and the investment manager of his own family office investments across multiple alternative investment sectors including real estate, Follini’s deep experience crosses more than three decades and sectors from real estate to media and venture capital. Follini and his team will use their proprietary analytic to identify specialized assets meeting future-forward logistics realities such as increasing demand for specialized cold storage facilities serving food, grocery and healthcare; mobility hubs for autonomous vehicle parking and local delivery; package lockers; and other emerging needs of a modern screen-to-door economy.