RealtyShares Closes First Off-Platform Commercial Real Estate Deal
SAN FRANCISCO–RealtyShares, a leading online marketplace for real estate investing has just announced its first commercial real estate deal funded via an off-platform institutional delegate lender relationship. This deal demonstrates the company’s capacity to finance real estate opportunities through both its crowdfunding marketplace and its network of institutional capital partners. The flexibility of having both on- and off-platform funding options allows sponsors to finance increasingly large-scale projects at potentially the lowest cost of capital.
BG10 Properties, a Pittsburgh-based apartment complex owner and operator chose RealtyShares to raise debt capital for a stabilized property acquisition. Specializing in Class B and better multifamily apartment complexes, BG10 Properties will add a 26-unit apartment complex to its portfolio thanks to RealtyShares.
“We decided to arrange financing through RealtyShares because the terms offered were the best in the market,” said Daniel Croce, Principal at BG10. “By utilizing RealtyShares’ expertise and relationships, we closed a deal with financing that will allow us to optimize our cash flow and total returns.”
The property, located in Bellevue, near downtown Pittsburgh, drew competitive debt quotes from several lenders.
“BG10 Properties was able to raise low-cost capital from one of RealtyShares’ trusted outside lending partners in our first off-platform commercial real estate debt transaction,” said Anthony Dagati, Business Development at RealtyShares. “While we tend to see more value-add property opportunities on our platform, this stabilized asset, which was renovated as recently as 2014, has positive near-term upside through raising in-place rents to at-or-near market rental rates post-acquisition.”
To date, the RealtyShares network of investors have funded $200 million across more than 400 investment opportunities on the platform, funding residential and commercial projects in 31 states.
RealtyShares is transforming the real estate investment landscape by connecting borrowers and sponsors to debt and equity capital from accredited and institutional investors, across an array of financing products. Private investments are highly illiquid and risky and are not suitable for all investors. Through the RealtyShares website, these investors can browse investment opportunities, perform due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing. RealtyShares offers equity securities through North Capital Private Securities Corporation, member FINRA/SIPC. For more information on how to become a real estate investor or to seek capital through the RealtyShares marketplace, please visit www.realtyshares.com.