CrowdStreet in South Carolina and a Wind Farm from AcreTrader.

As we march into December there are plenty of new developments in the world of real estate crowdfunding, including new projects from CrowdStreet and AcreTrader, an NYC-based real estate firm seeking to unload retail buildings in Miami’s Design District, and more changes in leadership at Kiavi, formerly LendingHome. Let’s get into it.

New Crowdfunding Platform Deals

Many areas of the Southern United States have seen substantial growth over the past decade or so- a trend that was only accelerated during the home rush in the early and middle part of the COVID-19 pandemic. Much of this growth was (and is) being driven by the relative affordability of many Southern markets when compared to high cost of living areas in other parts of the country. We’ve seen many different real estate crowdfunding projects in the South, including this offering from CrowdStreet, the Latitude at West Ashley Apartments, a planned multifamily apartment complex renovation that’s currently under contract at a below-market price in a fast-growing submarket of Charleston, South Carolina. 

The sponsor for the project, Trion Properties Inc, intends to utilize a renovation value-add strategy, including high-end interior upgrades as well as exterior improvements and amenity additions like a new dog park, playground, and more BBQ areas. The targeted investor IRR for the project is 16.3%, the targeted equity multiple is 1.8x, the targeted average cash yield is 7.2%, and the targeted investment period is 4 years. You can learn more about the Latitude at West Ashley Apartments at CrowdStreet, here. 

Up next is a new farm offering at AcreTrader, The Sunset Ridge Wind Farm, a 160-acre corn and soybean farm located in the heart of the heartland, Bureau County, Illinois. This farm is made up of 141 tillable acres of highly productive, “Class A” soil, which has contributed to the high yields on the farm, with average corn yields coming in at more than 200 bushels per acre and soybean yields coming in at more than 58 bushels per acre. 

What makes this offering unique is the fact that the farm also comes with two wind turbines built in 2018 that produce wind energy and earn owners yearly lease payments of $11,500 each with a 2.5% annual escalator, helping to add to investors’ bottom lines. The Sunset Ridge Wind Farm has an estimated ownership duration of 5-10 years, a gross cash yield of 3.4%, a net cash yield of 2.3%, and a net annual return of 8.2%. Check it out at AcreTrader, here. 

General Crowdfunding Industry News

The founders of crowdfunding platform RealIT, brothers Remy and Marc-Jean Jacobson, plan to offload some of their Miami holdings in the city’s fashionable Design District. The pair recently placed a historic building on the market with an asking price of $12 million. The vacant property, located at 4141 North Miami Avenue, was initially slated for redevelopment after the pair acquired approvals from Miami’s Historic and Environmental Preservation Board to renovate the mid-century modern office building with new glass panels, a rooftop terrace, and several other improvements. In a conversation with TheRealDeal, Remy Jacobson remarked to the author that he does not spend enough time in Florida to handle the renovation, hence the listing. The property has 15,901 square feet of rentable space, qualifies for Florida historic tax credits, sits in an Opportunity Zone, and is shovel-ready. Read more at TheRealDeal, here. 

Crowdfunding Platform Updates

Real estate crowdfunding platform Kiavi, which recently changed its name from LendingHome, recently hired a new Senior Vice President of Products, Vinay Goel. The new executive will report directly to Kiavi’s current CEO, Michael Bourque, and brings decades of digital product experience, formerly serving as the Chief Digital Product Officer at Jones Lang Lasalle, Inc., as well as holding different leadership roles at Google, including leading all of the developer and imagery products for Google Maps. 

Goel was brought on for his significant understanding of real estate-focused tech, hoping to help the firm innovate products to help improve customer decision making, streamline deal flow, and help Kiavi embrace the digital revolution in real estate investing. You can learn more about this hire at Business Wire, here. 

That’s it for the last November issue of “The GowerCrowd Real Estate Crowdfunding Newsletter,” but we’ll be back in December with plenty more news stories, new deals, and crowdfunding platform updates for your reading pleasure. See you then.