The world of investing is often portrayed as a binary choice between doing well and doing good. On one side, there are the traditional investments designed to maximize financial returns, often with little regard for their broader impact. On the other, there are impact investments that prioritize social or environmental outcomes, sometimes at the expense of financial performance.
But what if there was a way to achieve both – to earn attractive returns while also supporting the growth of a critical sector of the U.S. economy? This is the opportunity presented by the PIR FixedFunds Program®, an innovative investment model that allows accredited investors to earn fixed returns while helping to fuel the resurgence of U.S. manufacturing.
The Manufacturing Renaissance
To understand the potential of the FixedFunds Program, it’s important to first understand the powerful forces that are reshaping the U.S. manufacturing landscape. After decades of offshoring and decline, the sector is experiencing a remarkable resurgence, driven by a combination of technological advances and shifting global economic trends.
The rapid development of advanced technologies like 3D printing, robotics, and artificial intelligence is transforming the way products are designed, produced, and distributed. These technologies are enabling manufacturers to create more complex and customized products, shorten production cycles, and reduce costs. At the same time, they are making it more feasible to produce goods closer to end markets, rather than relying on far-flung global supply chains.
This technological shift is dovetailing with a broader trend towards deglobalization and the unraveling of the post-World War II economic order. Rising wages in traditional low-cost countries, increasing transportation and logistics costs, and growing concerns about supply chain resilience are all driving a shift towards reshoring and nearshoring of manufacturing.
The COVID-19 pandemic has only accelerated these trends, exposing the risks of overreliance on overseas production and highlighting the importance of having robust domestic manufacturing capabilities. Governments and businesses around the world are now rethinking their manufacturing strategies, with a renewed focus on localizing production and building more resilient supply chains.
The Ecosystem Effect
For the U.S., this manufacturing renaissance presents a tremendous opportunity. By bringing production back home and leveraging the power of advanced technologies, the country has the potential to create millions of new jobs, revitalize communities, and secure its position as a global leader in innovation and industry.
But this opportunity is not just about the big players – the giant corporations with household names. In fact, much of the growth in U.S. manufacturing is being driven by small and midsize enterprises (SMEs) – the specialized suppliers, contract manufacturers, and service providers that form the backbone of the industrial ecosystem.
As large manufacturers bring production back to the U.S. and invest in new technologies, they are relying on a network of these smaller, more agile firms to provide the components, sub-assemblies, and specialized services they need. This is creating a virtuous cycle of growth and investment, as SMEs expand to meet the needs of their larger customers, creating new jobs and driving economic activity in the process.
The Real Estate Imperative
But for SMEs to thrive in this new manufacturing landscape, they need access to the right kind of real estate — small, flexible, well-located industrial spaces that can accommodate their unique needs and support their growth over time. This is where the FixedFunds Program comes in.
Through the FixedFunds Program, Phoenix Industrial Redevelopment (PIR) is acquiring and repositioning small bay multi-tenant industrial properties in strategic markets across the U.S. – the kind of properties that are ideally suited for the needs of small and midsize manufacturers. By focusing on properties in the 20,000 to 100,000 square foot range with workspaces of from 1,000 to 5,000 square feet, PIR is able to provide the kind of flexible spaces that can accommodate a wide range of industrial users.
PIR’s value-add approach involves making targeted improvements to these properties to enhance their functionality, efficiency, and appeal to tenants. This could include upgrading building systems, improving site layout and accessibility, and adding amenities like high-speed internet. The goal is to create modern, high-quality industrial spaces that can support the needs of today’s advanced manufacturers.
By aggregating these properties into a diversified portfolio, PIR is able to offer investors the potential for attractive fixed returns, with the added benefit of supporting the growth of a vital sector of the U.S. economy.
The Power of Fixed Income
For FixedFunds investors, the primary benefit is the opportunity to earn fixed income through two investment options:
- Income Notes: 8% annual return, paid monthly
- Growth Notes: 8% annual return, compounded monthly
Both options have a 5-year term with a 2-year extension option and a minimum investment of $50,000. This structure provides investors with a reliable stream of income or the potential for compounded growth, depending on their financial goals.
The FixedFunds Program also offers stepped-up interest rates for larger investments:
- Tier 1 ($50,000 to $499,999): 8.00% annual interest
- Tier 2 ($500,000 to $999,999): 8.25% annual interest
- Tier 3 ($1,000,000+): 8.50% annual interest
This tiered structure allows investors to potentially earn higher returns as they increase their investment in the program.
The Impact Imperative
But the benefits of investing in the FixedFunds Program go beyond just financial returns. By supporting the growth of U.S. manufacturing, FixedFunds investors are also helping to create positive social and economic impacts in communities across the country.
Manufacturing has long been a key driver of middle-class job creation and economic prosperity in the U.S. The sector has historically provided high-paying jobs with good benefits, particularly for workers without advanced degrees. As manufacturing declined in recent decades, many communities were left behind, with devastating impacts on local economies and social fabrics.
The resurgence of U.S. manufacturing presents an opportunity to reverse these trends and create new pathways to prosperity for millions of Americans. By investing in the industrial real estate that supports this resurgence, FixedFunds investors are playing a vital role in this process.
Every investment in a PIR property helps to create space for small and midsize manufacturers to grow and thrive. Every job created by these companies supports families and communities, generating economic activity and tax revenue that can be reinvested in local infrastructure and services. And every product made in a PIR building represents a contribution to the country’s manufacturing capabilities and economic resilience.
A Model for the Future
The PIR FixedFunds Program® represents a new model for real estate investing – one that combines attractive fixed returns with the opportunity to create positive social and economic impacts. By aligning the interests of investors and communities, the FixedFunds Program is demonstrating that it is possible to do well by doing good.
As the U.S. manufacturing sector continues to evolve and grow, the demand for the kind of high-quality, flexible industrial space that PIR provides will only continue to increase. For investors looking to participate in this exciting and transformative opportunity, the FixedFunds Program offers a unique way to gain exposure to the industrial real estate market while supporting the growth of a vital engine of the U.S. economy.
With its focus on value-add investing and its experienced management team, PIR is well-positioned to deliver on the promise of the FixedFunds Program. For accredited investors seeking a fixed income opportunity with attractive returns and meaningful impact, the FixedFunds Program is an investment worth considering.
