In Addition to Five Recent Transactions, the Online Crowdfunding Platform Also Launched Its First Crowdfunded REIT in August
Following last month’s launch of MogulREIT I, RealtyMogul.com’s first crowdfunded real estate investment trust, the company announced today that it had closed five transactions in markets across the country. Four of the five deals were equity investments into multifamily properties, while the fifth marked the commercial real estate platform’s largest 1031-qualified transaction to date.
“The past few months have been a period of growth for us, both in terms of our new offerings and in terms of the crowdfunded transactions that have been at the core of our platform since launch,” said Jilliene Helman, CEO of RealtyMogul.com. “These recent successes demonstrate how we are democratizing the commercial real estate space for more and more investors.”
The platform’s latest completed transactions include:
Equity Investment for Bay Area Multifamily Property
RealtyMogul.com investors provided $1.7 million in equity for the acquisition of Buckingham Apartments, a 48-unit multifamily property in Redwood City, CA. The sponsor is a private equity investment company that acquires opportunistic real estate investments requiring moderate to heavy rehabilitation on a mid- to long-term investment horizon. For this property, the sponsor plans to raise rent levels through a renovation plan and improved management.
Investor Support for Brooklyn Multifamily Equity Investment
RealtyMogul.com closed a $900,000 equity investment into the acquisition of a 27-unit multifamily property located in the Flatbush neighborhood of Brooklyn, NY. The sponsor is a New York-based firm that focuses on multifamily properties with growth potential. The sponsor viewed this transaction as an opportunity to purchase a property with appreciation potential at a below-market rate.
Investment in a 1031-Eligible Diversified Retail Portfolio
RealtyMogul.com investors contributed $2.2 million to a portfolio of 19 single-tenant, long-term net-leased retail assets spanning eight states. The properties in the portfolio are leased to a diversified tenant base and are all 100 percent occupied. This transaction constitutes RealtyMogul.com’s largest transaction to date available to investors using a 1031 Exchange. The portfolio provides potential return on investment through monthly cash distributions and sales of any of the owned properties.
Equity Financing for Dallas-Area Multifamily Property
RealtyMogul.com invested $2.3 million in equity for the acquisition of Woodbridge Apartments, a 91-unit townhouse-style multifamily property located in Arlington, TX. RealtyMogul.com provided 90 percent of the equity in the transaction. The sponsor for the acquisition owns 1,450 units and is expanding its holdings in Texas and other growth markets. The sponsor intends to improve the property by undertaking renovations to address deferred maintenance and mechanical issues.
Multifamily Property With Upside Potential
RealtyMogul.com investors provided $1.5 million in equity to help finance the acquisition of Trails at Lakeside Apartments, a 208-unit multifamily property in Indianapolis, IN. This is RealtyMogul.com’s fifth transaction with the sponsor, a local firm that has owned and managed more than 3,900 multifamily units nationally. The sponsor has determined that the property is currently renting at below-market rates, and it intends to implement an improvement plan aimed at bringing rents in line with the market.
In August, RealtyMogul.com also unveiled its new crowdfunded REIT, MogulREIT I, which is available for investment exclusively online. With a minimum investment of $2,500, the fund is open to nearly all investors and offers a diversified commercial real estate portfolio with lower fees than most traditional non-traded REITs. As is always the case, real estate investments do carry risks and do not guarantee a return.
“We’re always striving to deliver on our goal of ‘Access through Innovation’ when it comes to real estate investing,” added Helman. “Whether it’s through MogulREIT I or our successful collaborations with sponsors and investors, we’re well positioned to have an even bigger impact on the industry going forward.”
RealtyMogul.com is an online marketplace for real estate investing, giving individual investors real-time access to commercial real estate and professional real estate companies easier access to capital. Through crowdfunding, RealtyMogul.com gives investors tools to browse investments, do due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing. RealtyMogul.com partners with professional real estate companies to source investment opportunities and underwrites all of the investments. For these real estate companies, RealtyMogul.com offers JV and preferred equity as well as mezzanine and first position debt. For more information, visit www.realtymogul.com.
Equity securities are offered through North Capital Private Securities Corp., registered broker/dealer and member FINRA/SIPC.