SAN FRANCISCO–RealtyShares, a leading online marketplace for real estate crowdfunding, announced today that it has closed the initial round of a first-of-its-kind diversified marketplace equity fund. The unique fund should enable investors to access a diverse portfolio of real estate investments through a single contribution.
Managed by a team of experienced real estate investment managers, this fund was created for qualified investors and institutional partners, offering the opportunity to efficiently invest in middle market real estate. Each investment is to be a part of a portfolio of 10 to 20 properties selected by RealtyShares’ team of experts. Investors can also benefit from depreciation tax benefits, a feature that can be favorable to investors looking to reduce their taxable passive income.
“These RS Funds are a part of a broader strategy to provide investors exposure to middle market real estate, including those who lacked access to the asset class or found it inefficient,” said Javier Benson, Head of Capital Markets for RealtyShares. “The fund format allows for diversification within one investment with alpha-generating potential created through our focus on capturing the illiquidity premium found in middle market real estate. This product is potentially perfect for investors who want asset-type or geographic exposure at low fees without the idiosyncratic risk associated with investing in one asset.”
The fund is mandated to invest in middle market real estate transactions that are typically $50 million and smaller, encompassing deals in opportunistic pockets within primary markets (e.g. San Francisco East Bay Area) and compelling secondary markets (e.g. Austin, Texas). The RealtyShares team intends to focus investments on value-add multifamily and commercial projects in Arizona, California, Florida, Illinois, New York, North Carolina, Texas and Virginia.
“Until now it has been difficult for many qualified investors to access the type of real estate transactions that are being targeted with this fund,” said Amy Kirsch, Director of Investor Relations at RealtyShares. “With a relatively low capital requirement, investors should be able to greatly simplify the process of investing in a large, diverse portfolio of real estate deals, at a discounted price, with the expert discretion of our team of qualified asset managers. We are pleased to offer this opportunity to investors seeking to expand their real estate portfolios.”
Portfolios are to include both equity and preferred equity deals, and investors will be offered a discounted fee rate of 0.85 percent of assets under management, below the standard 1 percent or more fee when investing directly through the RealtyShares marketplace. The minimum investment requirement is $250,000, and participation is open to accredited investors only.
To date, the RealtyShares network of investors has funded upwards of $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 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.