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1031 Crowdfunding has launched its first private real estate investment trust, Covenant Senior Housing REIT Inc., or CSHREIT, the company announced Thursday.

The REIT launched Nov. 1 with a focus on senior living. The total asset value for the REIT is estimated to be $51.25 million, with an 89% occupancy rate across three properties in California and Oregon, according to 1031 Crowdfunding.

The REIT’s primary objectives, according to a press release from the Irvine, CA-based real estate investing platform, are to preserve capital, generate income and grow the investment platform’s net asset value “as a potential offset to the erosion in the value of the dollar caused by inflation.”

The new REIT “is the first of its kind for 1031 Crowdfunding and will allow us to acquire and manage more income-producing commercial properties and real estate-related assets within strategic markets nationwide,” 1031 Crowdfunding President and CEO Edward Fernandez said.

“We specialize in acquiring senior housing facilities, an asset class poised for robust and ongoing growth due to aging demographics and the long-term potential for a hedge against inflation,” Fernandez said. “With a $5,000 minimum, we’re eager to reach accredited investors who want to invest in real estate yet embrace lower volatility than that of publicly traded REITs.” 

1031 Crowdfunding said that it has tended to look for senior living opportunities due to the increasing number of baby boomers (those born between 1946 and 1964 and aged 58 to 77) aging into the segment.

Last month, 1031 Crowdfunding added two Florida assisted living and memory care communities to its portfolio.