Greenwood Star Income & Growth Trust Inc. – a perpetual life private placement focused on high-quality, multifamily assets structured specifically for registered investment advisers – announced its first regular distribution of $50 payable to shareholders of record as of Sept. 30, 2024.
The distribution was paid on Nov. 5 and reflected a targeted annualized 6% distribution rate based on the stock at valuation per unit, as of Sept. 30. The company said the funds were paid in cash to shareholders or reinvested in shares for shareholders participating in the fund’s distribution reinvestment plan.
This is notably the fund’s first distribution declaration since acquiring its first asset on Sept. 1, which was fully funded out of net operating income.
As previously reported by The DI Wire, Greenwood Star Holdings LLC – a vertically integrated real estate company specializing in the acquisition, management, and disposition of multifamily properties – entered the retail capital markets by launching the fund in August. According to its Form D, the fund requires a minimum investment of $100,000.
Founded in 2013 by Lisa Li, chairman and chief executive officer, and Dawson Lee, chief investment officer, and headquartered in Atlanta, Greenwood Star and its affiliated companies have owned and managed more than 37 multifamily properties with over 7,500 apartment units valued at over $700 million across the southern region of the United States.
The fund’s stated objectives are to preserve and protect invested capital; provide reliable, predictable cash distributions; and to realize appreciation in the stabilized asset value. It expects that the majority of its total assets will be higher quality, income producing multifamily assets that have the potential for increased income and appreciation through enhanced property management. The fund is currently focusing on acquisitions located in metropolitan and surrounding areas within the southern United States.
According to the company, Li and Lee have agreed to defer a portion or potentially all of the distributions payable to the wholly owned investment entity – through which they invested over $11 million – in order to support distributions to investors during the first three years of operations.
Greenwood Star Holdings LLC currently has completed 29 full cycle multifamily transactions and owns and manages eight multifamily properties with 2,163 units valued at more than $500 million.
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