Bezos backed crowdfunding platform gears up
While we’re seeing significant turmoil in the equities and crypto markets, real estate soldiers on. This week, on The GowerCrowd Real Estate Crowdfunding Newsletter, we’ve got a plethora of new deals, news, crowdfunding platform updates, and multimedia links. We’re going to start with a look at a Consistent Cash Flow Opportunity in the Strong NJ industrial Market and a look at the Matteson Lake Farm on AcreTrader.
The hottest three words in real estate crowdfunding right now are “single-family homes,” with investment luminaries from Goldman Sachs to Amazon impresario Jeff Bezos dipping their toes in the space. In general news, we’ll look at the purchase of 87 single-family homes in Central Florida by a Goldman Sachs-backed firm. After, we’ll go on to show you the Jeff Bezos-backed real estate investment platform that fully funded 12 properties in under 5 hours.
We will finish off with several new podcasts for your listening pleasure, including a look at the SEC’s new crowdfunding-related regulations.
Let’s get into it.
New Crowdfunding Platform Deals
Our first project is Paterson Industrial, a 65,175 square foot warehouse facility that sits in Paterson, New Jersey, about 20 miles from New York City. This property boasts long-term stable cash flow from a newly executed 10-year NNN lease extension, giving it both immediate value accretion and a favorable acquisition basis from an off-market transaction. The Paterson Industrial property has a target IRR of 16.07%, target cash on cash of 6.4%, and a target equity multiple of 1.88x. Read more at RealtyMogul, here.
Next up is the Matteson Lake Farm, a 108-acre soybean and corn farm that rests in Branch County, Michigan, one of the premier agricultural production zones in the state, with more than 200,000 acres of cropland and more than 1,200 registered producers. The farm itself sits between Chicago and Detroit, a short drive north of the Indiana state line, giving the region both excellent farmland and top-notch crop delivery infrastructure. As of the writing of this newsletter, the farm is 66% subscribed and still available for investing. It has a gross cash yield of 2.9%, a net cash yield of 1.8%, and a net annual return of 7.7%. Check it out for yourself at AcreTrader, here.
General Crowdfunding Industry News
A joint venture between two Fundrise-sponsored funds recently acquired a portfolio of 87 detached, single-family rental homes in a single community in Palm Bay Florida. The community, Cypress Bay, was initially developed by DR Horton Inc and finished construction in February of 2022. The home community was purchased by a joint venture between Fundrise’s Growth eREIT VII and the Fundrise Interval Fund for $45.7 million. At the time of purchase, 41% of the homes were occupied. The Fundrise Flagship Interval Fund was launched in January 2021, with a $300 million credit facility from Goldman Sachs Group, in an effort to increase its participation in the single-family home markets. Read more at Yahoo! Money, here.
Crowdfunding Platform Updates
Despite rumblings in the stock market, real estate remains a stable place to park your cash and defend it from the growing tide of inflationary pressures we’re seeing not just in the United States, but globally as well. This is why it comes as no surprise that newcomer Arrived Homes, a single-family real estate investment platform, fully funded a batch of 12 new rental properties released on May 2nd- in less than 5 hours. It also helps that Billionaire and Amazon Founder Jeff Bezos is backing the firm. Learn more about Arrived Homes and their stunning debut in the single-family real estate crowdfunding space at Benzinga, here.
Multimedia Links (Videos, Podcasts, etc.)
Lastly, we’re going to show you a podcast hosted over at Listen Notes, Venture Capitol. In an episode released on May 4th, the podcast hosts took a long look at the new SEC rules regulating private markets, and how these new regs may make life difficult for startups and investors in said startups. They look at why the SEC is going after private funds, and what the potential consequences of such a move might be.
Interviews during the podcast include Congressman French Hill (R-AR), NVCA’s Senior Director of Government Affairs Charlotte Savercool, and former SEC Director and Advocate for Small Business Capital Formation, Martha Miller. Give this enlightening conversation a listen over at Listen Notes, here.
That’s all for this week, but we’ll be back next week with plenty more news stories, platform updates, podcasts, and other crowdfunding-related info. See you then!
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