Invest Directly. Invest Aligned. Invest with Lightstone.

Dear Investor,

We are excited to introduce you to our newest partner, Lightstone DIRECT. Real estate can play an important role in a diversified portfolio, but not all private deals are structured the same. Today, Lightstone DIRECT explains their approach to sponsor alignment, deal structure, and current opportunities for accredited investors.

By way of disclosure, we have an advertising relationship with Lightstone DIRECT, meaning we get paid for making this introduction and sharing this content. As always with these types of deals, consider this an introduction and not a recommendation. Every deal is unique and the responsibility to vet any and every deal you invest in still lies with you. This opportunity is for accredited investors only.

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For many physicians and high-income professionals, real estate investing begins with a simple objective: durable cash flow, tax efficiency, and long-term wealth creation outside of public market volatility.

The challenge is alignment.

Too often, investors must choose between:

• Crowdfunding marketplaces with minimal sponsor capital at risk;
• Sub-scale operators whose experience dates back one cycle, at most;
• Large semi-liquid funds offering diversification—but limited transparency, little control over individual assets, and dubious redemption mechanics.

[TAKE YOUR SEAT AT OUR TABLE]

Lightstone DIRECT was built to offer something different.

It provides accredited investors the opportunity to co-invest directly alongside Lightstone—one of the largest privately held real estate investment firms in the United States—with meaningful GP co-investment in each deal.

Lightstone DIRECT's first offering is a class B, value-add industrial park in South Carolina, offering a target 7.7% net cash-on-cash and 15.2% net IRR over a 4-year target hold. WCI investors can exclusively invest at $50K, below the typical $100K minimum. 1031 exchange and multifamily opportunities will be available within the next several weeks.

The Alignment Difference: 20% GP Co-Investment

Lightstone commits a minimum of 20% of the total equity in each Lightstone DIRECT offering.

By comparison, many private real estate sponsors typically invest closer to 2–5% of total equity in their deals.¹

That difference is not cosmetic—it is structural.

When a sponsor contributes 20% of the equity stack:

• We remain the largest investor in these transactions; Lightstone's capital is truly at risk alongside individual LPs.
• Underwriting discipline remains as tight as for any Lightstone investment. In fact, it is one and the same investment committee.
• Capital allocation decisions prioritize downside protection.
• Incentives are aligned from acquisition through exit.

We believe alignment should be visible in the capital stack—not just the marketing materials.

A $12B AUM Owner/Operator, in Your Corner

Lightstone was founded in 1986 and today manages over $12 billion in assets across multifamily, industrial, hospitality, life sciences, and credit.

Since 2004, Lightstone's realized investments have generated a 27.6% net IRR and 2.54x equity multiple, with an average hold period of 4.7 years.

This track record spans multiple real estate cycles—including the Global Financial Crisis— experience that many newer operators simply cannot offer.

Lightstone DIRECT extends access to this institutional platform through:

• Single-asset multifamily and industrial offerings (not blind-pool funds)
• Direct-to-sponsor access (no intermediary marketplace)
• Simplified, transparent fee structures
• Dedicated investor relations support

Why Now: A Reset Market Cycle

Real estate valuations have corrected meaningfully since peak pricing.

At the same time:

• New industrial completions have declined 59% from the Q3 2023 peak.
• Apartment completions are expected to decline 34% over the next 12 months .
• Class B multifamily and shallow-bay industrial occupancy nationally remains in the 93–95% range.

We believe this combination—pricing reset, declining supply, and resilient occupancy—creates an attractive entry point for disciplined capital.

Our Investment Thesis: Cash-Flowing Class B Assets

Lightstone DIRECT focuses on two sectors where we see durable demand and structural supply constraints:

1. Class B Workforce Multifamily

Our strategy centers on:

• Strong in-place cash flow
• Modest value-add and Core+ repositioning
• Tier II markets with resilient employment bases
• In-house property management to control operations

Across our multifamily portfolio, average occupancy stands at 93%, with average year-over-year rent growth of 2.9% .

Class B assets benefit from:

• Limited new competing supply (most development targets luxury product)
• Healthy discount to replacement cost
• Consistent workforce housing demand
• Operational upside through renovation and expense management

For investors prioritizing steady income and measured appreciation—not speculative development—this segment offers potentially compelling risk-adjusted characteristics.

2. Shallow-Bay Industrial

Industrial remains a long-term structural theme, but we are focused specifically on shallow-bay and small-bay industrial—the segment serving regional distributors, service businesses, and light manufacturing.

This segment benefits from:

• Chronic undersupply (new shallow-bay deliveries since 2010 have averaged just 0.6% of existing stock annually, well below other industrial formats)
• Lower vacancy relative to large-box industrial
• E-commerce tailwinds
• Reshoring and domestic manufacturing investment

Lightstone's industrial portfolio currently spans approximately 12 million square feet.

In our view, shallow-bay industrial offers:

• Durable tenant diversification
• Functional buildings below replacement cost
• Strong in-place income
• Structural barriers to new supply

Single-Asset Control, Not Blind Pools

Unlike evergreen private REITs or marketplace funds, Lightstone DIRECT offers:

• Individually capitalized deals
• Asset-level transparency
• Clear business plans
• Defined exit strategies

Investors curate exposure deal-by-deal, rather than allocating into blind pools where capital may be deployed at peak valuations.

For physicians and professionals accustomed to making informed decisions, this structure offers clarity and control.

Built for Alignment. Designed for Simplicity.

Lightstone DIRECT was created to bridge two worlds:

• The discipline and scale of a multi-billion-dollar institutional platform
• The access, service, and streamlined investing experience individual accredited investors deserve

We believe true partnership means:

• Meaningful co-investment
• Transparent economics
• Institutional underwriting
• Direct access to the sponsor

Take your seat at our table.

If you would like to learn more about current offerings, portfolio positioning, and how Lightstone DIRECT may complement your broader investment strategy, we invite you to explore the platform.

We look forward to investing alongside you.

Lightstone DIRECT

Direct Access. Meaningful Alignment. Institutional Discipline.

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About Lightstone DIRECT

Many real estate platforms promise alignment, but few truly structure it. With Lightstone DIRECT, accredited investors co-invest directly alongside Lightstone—one of the largest privately held real estate firms in the United States. Lightstone invests at least 20% of the equity in every investment; these are the same industrial and multifamily deals Lightstone pursues on its own balance sheet. This level of GP capital is meaningfully higher than the typical 2–5% commitment seen across much of the industry and is designed to ensure strong alignment between Lightstone and its investment partners.

Lightstone DIRECT focuses on acquiring cash-flowing Class B multifamily and light industrial assets in markets supported by durable demand and long-term economic growth. The strategy centers on properties where disciplined acquisitions, operational improvements, and thoughtful asset management can create value while generating consistent income. By targeting resilient asset classes and maintaining significant sponsor participation in each investment, Lightstone provides investors access to institutional-quality real estate opportunities alongside an experienced, vertically integrated operating partner.

Learn more about Lightstone DIRECT today

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Thank you for your time, and as always, your feedback is welcome and appreciated.

Jim and Brett

James M. Dahle, MD, FACEP
Founder, The White Coat Investor

Brett Stevens, MBA
COO, The White Coat Investor

¹Based on a comprehensive assessment of deal docs from real estate managers offering private investments to individual LPs, conducted by Lightstone personnel in 2025.

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