Portland Multifamily Market Sees 50%+ Rent Growth

The multifamily equity investment has a hold period of 10 years, a minimum investment of $35,000, and an estimated first distribution in 7/2022. It’s got a target IRR of 13.2%, 8.6% target cash on cash, and a 2.4x equity multiple. You can learn more, or even make an investment pledge on RealtyMogul, here. 

As we see almost all forms of housing see price growth, self-storage properties are keeping pace- particularly as the number of renters grows, and high rents drive interest in smaller and smaller housing units- creating demand for people to keep all of their stuff somewhere other than a small studio or 1-bedroom apartment. 

This past February 10th, CrowdStreet held a webinar looking at the Myers Corners Self Storage Property in Wappingers Falls, NY. The sponsors of this deal plan to convert the existing property into a 1,356 Unit Class A climate-controlled self-storage facility managed by one of the leaders in self-storage nationwide, CubeSmart. Check out the webinar here, along with the info sheet for the deal.

General Crowdfunding Industry News

JD Supra recently published a piece that warns intermediaries- namely crowdfunding platforms- that they have a legal duty to be “gatekeepers” for the deals they list on their platform. Recent SEC guidance likely arose as a result of the TruCrowd, Transatlantic Real Estate, LLC and 420 Real Estate, LLC, fraud cases, which we’ve covered in-depth here at GowerCrowd. 

Rather than simply being deal aggregators, crowdfunding platforms are now expected to thoroughly vet any fundraising efforts on their platforms and may be held responsible if they choose to ignore obvious red flags, like a prior criminal or fraud charge for a potential deal sponsor. It’s an interesting- and welcome- development in a space that is maturing day by day. Read more at JD Supra, here.

ABC Fintech, an early-stage real estate investment platform, is raising money on WeFunder, as reported by Crowdfund Insider. The company intends to leverage blockchain technology to fractionalize commercial real estate and make the individual investment process in CRE more efficient. ABC Fintech plans to release “ABC Tokens,” which are digital securities backed by physical commercial real estate assets. 

This asset-backed digital currency represents a fractional interest in their property portfolio- potentially opening a new, exciting method of crowdfunding real estate and investing in fractional real estate. Read more at Crowdfund Insider, here. 

Crowdfunding Platform Updates

We’ll finish with a few crowdfunding platform updates, one from Republic and one from Modiv. 

Crowdfunding platform Republic is spinning off its virtual metaverse real estate arm, and rebranding it as Everyrealm. According to TechCrunch, over $500 million worth of real estate was sold on the top metaverse platforms in 2021- which is nothing to sneeze at. Many in the traditional real estate space are eagerly jumping into this digital property rush, hoping to take advantage of their existing organizations and skillset to get a leg up in this promising field. Read more at TechCrunch, here.

Modiv recently announced the pricing of a public offering of common stock. On February 10, 2022, they released a press release covering the pricing of their new underwritten public offering of 40,000 shares of its Class C common stock, which will be sold to the public at a price of $25 per share. The Class C shares began trading on the NYSE on February 11, 2022, under the ticker symbol MDV. Read more at Business Wire, here. 

That’s it for this week- but we’ll be back next week with all of your favorite news sources, new deals, general crowdfunding industry news, and platform updates.