GroundFloor just hit a MAJOR milestone
Hello GowerCrowders! I’ve got a lot for you this week, including new deals from RealtyMogul (Saxon Pond Flats), Penn Capital (Huntsville AL Build-to-Rent), and a 224- Class A asset in Houston, Texas, brought to you by QC Capital (QC Capital Hermann Park).
We’ll also take a look at the first KORESummit in 2023, connecting real estate, the JOBS Act, tokenization, and liquidity- among other crowdfunding-related topics. Crowdfunding platform Groundfloor also celebrated a major milestone recently, which we will cover in our platform updates section.
As always, we’ll round things out with a look at Week 7 of GowerCrowd’s exclusive SEC Filing Report, and a look at a new podcast from me, your host, from when I sat down with Joe Fairless on the latest episode of his podcast, Best Real Estate Investing Advice Ever.
Let’s get into it.
New Crowdfunding Platform Deals
This Houston MSA-based multifamily opportunity features a sponsor with an average realized IRR of 58% versus the corresponding 21.6% proforma. Their average realized equity multiple of 3.8x also outpaces the corresponding 2.3x proforma.
The Saxon Pond’s all-in cost basis is projected to be roughly $172k per unit- which compares very well with similar new construction properties selling in the local market for between $200-230k per unit. The project has an estimated hold period of 40 months, a target IRR of 20.2%, and a 1.85x target equity multiple.
Learn more about Saxon Pond Flats at RealtyMogul, here.
Penn Capital has an upcoming webinar for their new deal, Creekside Athens, in the Huntsville, AL, MSA. The webinar, on 2/22 at 8 pm EST/5 pm PST, is dedicated to showcasing this new opportunity with an 8% preferred return and a 2.2x equity multiple. The 98-unit build-to-rent community comes replete with an adjoining 10-acre site zoned for an additional 120 units.
Verdir at Hermann Park is a luxury apartment home deal from QC Capital. This deal offers investors several tantalizing characteristics, including its location near the world-renowned Houston Medical Center, +15% prospective annualized return, and its status as a luxury property in one of America’s fastest-growing MSAs.
Get the rest of the scoop for yourself on QC Capital here.
General Crowdfunding Industry News
2023’s KoreConX starts on February 27th and runs through March 3rd. The summit, entitled “Pocket Sessions for Real Estate, JOBS Act, and Liquidity, will have 12 panels hosting a wide variety of experts in these spaces, including Douglas Ruark, President of Regulation D Resources, founder of HeightZero Laura Pamatian, and Dnrew Corn, CEO of E5A Integrated.
Crowdfunding Platform Updates
Crowdfunding platform Groundfloor hit a major milestone recently, topping $1 billion in investments, according to a recent report from Crowdfund Insider. The firm was founded in 2013 by Brian Dally and Nick Bhargava, and the company currently leverages Reg A+ (Tier 1), as well as the Invest Georgia Exemption to give retail investors the ability to participate in RE-based securities offerings.
Since being founded in 2013, Groundfloor has delivered consistent 10% annualized returns for investors. Here’s to the next billion- and you can read more at Crowdfund Insider, here.
SEC Filings Graphs
Week 7 of 2023 saw the number of Reg D (b) deals from 34 last week to 20 this week. The number of Reg D (c) deals rose slightly from 7 to 9, but the total amount raised almost doubled, growing from $0.57 billion in Week 6 to $1.02 billion in Week 7.
Taking the top spot for most deals in Week 7 was California, supplanting last week’s winner, Iowa, which dropped out of the top 5 entirely. Oregon also jumped to the top of states by dollars raised, taking the top spot with $0.24 billion raised, which is slightly more than last week’s winner, Texas, which came in at $0.22 billion.
Multimedia Links (Videos, Podcasts, etc.)
As always, we’ll finish things off with a podcast- this time featuring, well, me! I recently sat down with real estate personality and investor Joe Fairless on his show, Best Real Estate Investing Advice Ever. In the episode, JF3089: How to Raise Capital Online in 2023 ft. Dr. Adam Gower.
We discuss why I feel there could be more multifamily deals in the near future, the differences between syndicating and crowdfunding, and how finding deals with a compelling story can motivate investors to take action. Please take a listen, I think you’ll get a lot out of our discussion. Stream or download the podcast, here.
That’s it for this week- but I’ll see you next week with lots more new deals, news stories, platform updates, podcasts, and so much more. Ciao!
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