Is it 1989 all over again for commercial real estate?

Hello GowerCrowders! Spring is in full swing in many parts of the country, and I’m back with your weekly dose of real estate crowdfunding news.

This week, I’ve got a few new deals for you, including The Crossing at KBP from EquityMultiple and the Porterville Ranch Citrus and Pistachio Property from farm-focused crowdfunding site AcreTrader. We’ve got a look at the “Startup of the Year” Awards from Geekwire, where crowdfunding platform Arrived Homes has made the finalist list. 

We’ll also take a look at the Exploring Alternative Investments Webinar from Groundfloor, and our weekly SEC Filing Report Data that you can only find here on GowerCrowd. As is custom, we’ll finish things off with a look at several podcasts, including my discussions with Andy Crebar, Co-founder & CEO, HoneyBricks and Orest Mandzy, Managing Editor at Commercial Real Estate Direct.

Let’s get into it.

New Crowdfunding Platform Deals

The Crossing at KBP from EquityMultiple is an opportunistic industrial asset acquired at an attractive basis by an experienced local sponsor. The project is also located in a well positioned site for development. 

This Hawaiian asset was recently acquired by a local, experienced sponsorship, at a 7.5% discount when compared to comparable properties near its location in the Kapolei Business Park West. The Crossing at KDP offers common equity investments with a target hold date of 27 months, a target net equity multiple of 1.6x, and a minimum investment of $15,000. Take a look for yourself at EquityMultiple, here.

Next up is the Porterville Ranch Citrus and Pistachio Property from AcreTrader. This Tulare County, California project sits in a region known as the citrus belt of the San Joaquin Valley. Investors have the opportunity to get in on the “dirt floor” with the acquisition of an orchard with historically secure dual-source water and diverse in-demand crop varieties. 

The property itself has 97 planted acres, with popular varieties of both tree nuts and citrus, with an 18-acre block of Golden Hill pistachios approaching maturity in the next two years.The farm has a total acreage of 110 acres, a price per acre of $25,000, an estimated ownership duration of 8-13 years, and a minimum investment of $25,000. Check it out on AcreTrader, here.

General Crowdfunding Industry News

Crowdfunding platform Arrived Homes has made the finalist list for this year’s GeekWire Awards. All of the entrants under consideration sit in different industries, but share one common trait: they are innovating in their fields and making a difference in the economy writ larger. To be eligible for an award, startups need to be no more than 5 years old starting in 2022,  and be submitted for consideration at GeekWire.com. Last year’s winner was Common Room, a Washington State area startup that helps companies create better relationships with their users and customers. 

Arrived Homes is an innovative real estate investment platform that allows individuals to invest in high-quality, single-family rental homes. Their goal is to make SFH investing more accessible to a broader audience, and they offer a transparent, user-friendly experience for those looking to diversify their investment portfolios and tap into the growing single-family rental market. Vote for Startup of the Year at GeekWire, here.

Crowdfunding Platform Updates

Crowdfunding platform Groundfloor has an upcoming webinar: “Inflation- and Recession-Resilient Assets Private Credit, Real Estate, and Wine.” In it, speakers from Percent, Groundfloor, Vinovest, and Vincent discuss rising market volatility, rising rates, and the conflicting economic signals we’re all seeing in the broader markets. 

Speakers include Nelson Chu, Founder and CEO of Percent, Brain Daily, Co-Founder and CEO of Groundfloor, Eric Cantor, Co-Founder and CEO of Vincent, and Anthony Zhange, Co-Founder and CEO of VinoVest. Check out the recording on Percent.com, here.

SEC Filings Graphs

The total number of both Reg D (b) and Reg D (c) deals jumped last week, from 26 up to 33 for Reg D (b) and from 2 to 9 in Reg D (c). While the total number of deals went up, the total amount invested dropped slightly from Week 11 to Week 12, with an even 1BN raised in Week 11 compared to $0.98B in Week 12. 

California once again took first place in states by number of deals, coming in at 6 total in Week 12, and California also came in first in dollars raised, rising from 5th place in Week 11 to 1st place in Week 12. Most deals were small, with 19 small deals, 13 medium deals, 6 large deals, and 4 undetermined. Check out the Week 12 SEC Filing Data you can only find at GowerCrowd, here. 

Multimedia Links (Videos, Podcasts, etc.)

I will finish things off with a look at two new podcasts featuring your humble host, aka me, aka Dr. Adam Gower. I spoke with two real estate luminaries recently, including Andy Crebar, Co-founder and CEO of HoneyBricks, and Orest Mandzy, the Managing Editor at Commercial Real Estate Direct. 

Andy and I discussed some of the benefits of using blockchain for a real estate crowdfunding platform, something that Crebar has seemingly cracked with his site, HoneyBricks. Benefits to investors include a simplified investment process, and the ability to transfer shares in private equity real estate deals to other people, seamlessly. It’s a fascinating episode and not one to be missed if you want to see into the future of real estate crowdfunding. Check it out on GowerCrowd, here.

I also spoke with Orest Mandzy, managing editor at Commercial Real Estate Direct. He tracks the industry through CMBS and other data provided by Trepp. In this week’s episode, we discuss the state of the US CRE market. If you’ve been following the news, you know that the outlook is not so bright right now. 

Many investors, particularly those with long memories, are asking “Is this 1989 all over again?” Find out the answer to that question- and others relating to the health of the CRE markets, in the latest episode of the GowerCrowd Podcast, featuring Orest Mandzy of CRENews.com, which you can find here.

As a final aside, one of our readers brought a new webinar to our attention- the UIP Petworth Development Webinar, which includes a discussion of UIP’s plans for redevelopment of the block located on top of Metro in Northwest DC’s Petworth neighborhood. If you’re interested, you can sign up for the Zoom webinar, here.

That’s it for now- but I’ll see you soon with even more real estate crowdfunding news, new deals, platform updates, podcasts, and more! Until then!