Miami’s first tokenized, crowdfunded property backed by cryptocurrency

Welcome back GowerCrowders! We’ve got another info-packed newsletter for you this week, including new real estate crowdfunding deals from CrowdStreet and AcreTrader, a podcast covering the growing trend of democratization in real estate,  and a round table with CrowdStreet CEO Ian Formigle– let’s get into it.

New Crowdfunding Platform Deals

Our first stop is Avon, Colorado, a dream destination for skiers, snowboarders, and winter sport enthusiasts of all sorts. The Avon Marriott Beaver Creek Development is a 243-key, dual branded Opportunity Zone hotel development in the heart of Avon, Colorado, just a short drive from the Beaver Creek Mountain ski lifts. This dual-branded Springhill Suites and Towneplace Suites property seeks to capture unmet mid-priced lodging demand in the region- where 90.2% of existing inventory is made up of luxury and upscale hotels. 

The Avon Marriott Beaver Creek Development has a targeted investor IRR of 15.4%, a targeted equity multiple of 2.5x, a targeted average cash yield of 16.7%, and a targeted investment period of 10 years. Check it out on CrowdStreet, here.

Now let’s head to Champaign County, Illinois, where AcreTrader has a new offering, a 112-acre corn and soybean farm located in the heart of the heartland, Champaign County, Illinois. This farm is set to undergo a transition to full organic farming over the next three years, eventually including 107 farmland acres, including 5.89 acres within the USDA CRP or “Conservation Reserve Program,” which pays landholders an annual payment for removing sensitive pieces of land from agricultural production to protect ecological diversity and health. 

The Dailey Farm has an estimated ownership duration of 10-12 years, a gross cash yield of 2.9%, a net cash yield of 2%, and a net annual return of 7.9%- learn more at AcreTrader, here.

General Crowdfunding Industry News

Nolan Reynolds International, a real estate firm focused on acquiring, developing, constructing, and managing mixed-use properties recently recapitalized THesis Miami, a Coral Gables, Florida property that opened its doors last fall. NRI solicited $32.7 million in funds from retail investors in order to create the very first tokenized property in the Greater Miami area. After approval, retail investors will have the ability to trade shares in the property, backed by a cryptocurrency issued by the company after a 6 month lockup period. 

The equity, which was raised through CrowdStreet, is part and parcel of a broader recapitalization effort for THesis Miami, including $150 million in debt from Starwood Property Trust and roughly $95 million in equity. Read more about this novel cryptocurrency/real estate financing plan over at Commercial Observer, here.

In another piece of real estate crowdfunding news from Miami, investor Grant Cardone and his firm, Cardone Ventures, is launching the Cardone Equity Group, a private equity firm that intends to focus on offering exceptional value to accredited investors, primarily through releasing value from lower middle market businesses. Accredited investors that work with the Cardone Equity Group will get access to private equity investments which are typically only available to institutional investors. Cardone intends to use his proven history and success with marketing, scaling, and sales strategies to create growth in the private marketplace for investors. Learn more at KULR 8, here.

Crowdfunding Platform Updates

Finally, we’re going to look at a platform update from CrowdStreet. CrowdStreet CIO Ian Formigle recently hosted a live Q&A to discuss strategy for the firm’s CrowdStreet Life Sciences & Healthcare Fund I, LLC, Series I offering. We’ve covered this fund in the past, but as a quick reminder, this fund targets properties positioned to benefit from growth in the healthcare and life science sectors as well as benefits from CrowdStreet’s unique access to institutional-quality deal flow. 

On a higher level, the fund seeks to take advantage of new technologies, private and public investment, employment and demographic shifts, and new scientific developments by creating or funding manufacturing, lab, and office real estate space. This sector has a great deal of potential for growth, largely due to the fact that US census data estimates that roughly 20% of Americans will be 65 or older by 2030- a number that increases to 25% by 2060. 

The initial webinar was hosted on December 8th at 10 am PST, but you can find a full recording here.

That’s all we’ve got for this week- but please take a look at the full list of real estate crowdfunding stories we’ve gathered for your reading pleasure. We’ll see you next week on “The GowerCrowd Real Estate Crowdfunding Newsletter.” 

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