Real Estate Crowdfunding Hits All Time Records

Welcome to the mid-October Gowercrowd Real Estate Crowdfunding news update. This week, we’ve got a couple of new real estate crowdfunding deals from Miami to Missouri, a look at a major milestone for the real estate crowdfunding industry, and a report on a few new acquisitions by real estate crowdfunding platform Fundrise. Let’s get into it.

New Crowdfunding Platform Deals

The Holcomb Farm at AcreTrader is now open for investment. It is a 372-acre cotton and soybean farm, located in the Bootheel region of the state, 11 miles north of Kennet, Missouri in Dunklin County. This farm is unique for its high soil permeability which allows for superior drainage when compared to heavier clay soils, an attribute that is particularly valuable in relation to cotton crop yields. The Holcomb Farm has a gross cash yield of 3%, a net cash yield of 2.1%, and a net annual return of 8%. To learn more about this property head on down to AcreTrader.

In what might be the polar opposite to a farm in rural Missouri, we’ve got 1 Southside Park, a 64-story mixed-use development in the heart of Miami, Florida, listed on CrowdStreet. The property will have 1,100+ multifamily units, a 189 room hotel, 200,000 SF of office space, and all of the amenities one would expect from a brand new building in Miami’s Brickell neighborhood. It’s got an investor IRR of 20.7%, a targeted equity multiple of 2.2x, and a targeted investment period of 6 years. Learn more at CrowdStreet, here.

General Crowdfunding Industry News

In this age of “fake news” and misinformation overload, it’s important to use as many primary sources as possible when forming a worldview- and even more important when it comes to making investment decisions. Which is why you should check out this article at RE Journals, entitled “Real estate crowdfunding hits record highs during the pandemic” penned by Tore Steen, CEO of Austin-based real estate crowdfunding platform CrowdStreet. Steen makes an impassioned case for real estate crowdfunding in 2021 and beyond, buoyed by data-driven insights from someone you might just know…

Halloween is just around the corner, but before you put on your “Squid Game” or COVID-19 costume you might want to check out this free webinar on October 27th for current and future real estate crowdfunding investors, presented by our very own Dr. Adam Gower. Topics of discussion will include the value of diversifying your portfolio with real estate, why high net worth and institutional investors love real estate, and the four game-changing benefits offered by real estate crowdfunding. You can tune in at 2 pm EST/11 am PST on GowerCrowd.

Crowdfunding Platform Updates

As always we’ll finish up with a few crowdfunding platform updates.

Last week, Fundrise acquired a rental home community in Charlotte, NC, as well as signed a tenant to a 27k SF long-term lease at a property owned by the firm at 4202-4216 West Jefferson Boulevard, Los Angeles, CA. Fundrise bought the property in 2019 for $14 million and it is just one of the office and retail properties owned by the company in South LA- according to a recent press release by the firm it owns 18 properties within a radius of a few blocks of the West Jefferson property. In an interesting tidbit, Fundrise purchased its first building in 2017 and the first lease it signed was with Grammy award-winning rapper Nas’ music and production company, Mass Appeal, which leased a 5,000 SF storage and office building.

Far from the sunny streets of LA, Fundrise recently acquired a rental home community in Charlotte, NC, adding to their growing portfolio of affordably-priced rental housing in the Sunbelt. They invested roughly $1.8 million in the first phase of the 87-unit community 10 minutes southwest of downtown Charlotte, appropriately named “LoSo Walk.” Fundrise hopes to take advantage of work from home trends which have driven many white collar professionals away from major metros on the coasts and into smaller MSAs with more potential for growth, and often higher cap rates.

This acquisition was made by two Fundrise sponsored funds, the Fundrise Interval Fund and the Growth eREIT VII. Read more at Fundrise, here.

That wraps it up for this week, but you’ve got plenty more to cover in the link list above, and we’ll be back, as always, with more real estate crowdfunding news, deals, and industry updates next week. See you then.