CrowdStreet CEO Ian Formigle on Real Estate in 2023

Hello GowerCrowders! Welcome to the inaugural December issue of “The GowerCrowd Real Estate Crowdfunding Newsletter.” 

I’ve got a lot of good stuff in store for you this week, including two new offerings- one hosted on CrowdStreet, a project offering Preferred Equity and Monthly Distributions in a FL Multifamily Dev in Luxury Community, and a new offering from RealtyMogul, a Metro Detroit project with a 24.1% Target IRR – 9.7% Target Cash-on-Cash located near GM, Fiat Chrysler, and Ford.

We’ll also check out two newsletters from RealtyMogul and AcreTrader, as well as two new podcasts, including a discussion with CrowdStreet CIO Ian Formigle and a talk with Phil Anderson of Property Sharemarket Economics

Let’s get into it.

New Crowdfunding Platform Deals

First up is the Royal Palm Beach Luxury Apartments in, you guessed it, Palm Beach, Florida. This multifamily development offers investors a white whale in the crowdfunding space- monthly cash flow through a return structure. 

The project is led by an enterprise sponsor, Lynd Living, that is co-investing almost 60% of project equity. It has a target IRR range of 16-19.9%, a targeted equity multiple of 1.5x-1.7x, and a targeted investment period of 3 years. Check it out on CrowdStreet, here.

Next up is the Gateway Industrial Center, sponsored by Innovo Development Group and hosted on RealtyMogul. This Detroit, Michigan-based deal is a 1,441,834 SF multitenant industrial campus that sits in the heart of Metro Detroit, close to auto industry power players like GM and Ford. The property benefits from ongoing cash flow and a new manufacturing and assembly facility set to be delivered this month- December 2022. 

The Gateway Industrial Center is now open for funding and boasts a target IRR of 24.1%, a target average cash on cash of 9.7%, and a target equity multiple of 1.70x. See for yourself on RealtyMogul, here.

General Crowdfunding Industry News

Up next is Part 4 of RealtyMogul’s Five-Part Guide for Commercial Real Estate Investors Seeking Passive Income. This series does exactly what the name implies- teaches you the ins and outs of finding passive income in the world of real estate crowdfunding. 

This week’s issue examines what investors need to know about offering structures, including an overview of fees and ownership structures, debt, overall capital structure, tenancy, and ESG risk. These are all incredibly important concepts when it comes to defending your portfolio from risk, so definitely give Part 4 a read on RealtyMogul, here.

Crowdfunding Platform Updates

Farm-focused crowdfunding platform AcreTrader also released the latest issue of “Lay of the Land,” their in-house newsletter dedicated to all things farm investing

In this month’s issue, the AcreTrader takes a look back at 2022 and its many memorable moments, including successful investment exits, their 2022 Land Investment Summit, and the recent launch of Acres, their game-changing mapping tool. You can also find several discussions in the newsletter, including a talk with CEO Carter Malloy on Nasdaq Trade Talks. 

Read this month’s issue of Lay of the Land, here.

Multimedia Links (Videos, Podcasts, etc.)

As is custom, I’ve got two new podcasts for your listening pleasure. I spoke with two real estate luminaries last week, CrowdStreet CIO Ian Formigle and Phil Anderson of Property Sharemarket Economics- and you’ve got free access to all of the insights I mined from these well-informed real estate professionals.

I regularly consult with CrowdStreet Chief Investment Officer Ian Formigle, a leader that’s probably seen more deals, real estate asset classes, sponsors, and investors than any other person in the CRE space. 

I had the good fortune to sit down with him last week to discuss the state of the industry, how interest rates are impacting values, the state of investor sentiment, and what we can expect to see in 2023. It’s a must-listen for anyone wondering what the next few financial quarters have in store. Listen to our discussion on GowerCrowd, here.

But Ian wasn’t the only person I interviewed last week. I also got to sit down with Phil Anderson of Property Sharemarket Economics. He’s the author of the best-selling book “The Secret Life of Real Estate and Banking” as well as the managing director of Economic Indicator Services (EIS), the company he started in 1991 that offers economic forecasting services to investors interested in emerging market trends in global markets.

You don’t want to miss this discussion- Phil is a longtime student of historical trends in real estate, banking, and the stock market, and in this episode, he reveals the patterns he sees and uses to predict the next market downturn. Check out some of his immediately actionable advice for making your way through the economic chaos surrounding global financial markets- and find the patterns that can help you make sense of it all. Check it out on GowerCrowd, here

That’s it for now- but we’ll see you soon with lots more real estate crowdfunding news, new deals, podcasts, and more. Until then!

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