Reg 506(c) Filings Tumble as Interest Rate Hikes Bite

Hello GowerCrowders!  As the first month of the year comes to an end, we’re serving up our regular menu of all the real estate crowdfunding stories you need to read.

This week, we’ll cover an upcoming discovery call at FNRP pertaining to a new project, The Waldorf Marketplace, as well as the Route 17K Self-Storage deal on RealtyMogul. As far as industry and platform updates, we’ll look at the newest member of the CrowdStreet Board of Advisors, Shawn Lese of Nuveen, as well as new platform-wide results reported by CF platform YieldStreet

As is our custom, we will finish off with a look at a new podcast for your listening pleasure, where Andrea Petersen, founder of CF platform School of Whales, discusses her strategy for building a purpose-driven real estate business.

Let’s get into it.

New Crowdfunding Platform Deals

FNRP is hosting a webinar/discovery call for their latest project, The Waldorf Marketplace. First National Realty Partners, or FNRP, is a crowdfunding platform focused exclusively on grocery-anchored necessity-based retail space. 

We covered the project a few weeks ago, but as a refresher, the project consists of a 359,484 square foot shopping center in Waldorf, MD, and is anchored by a large Safeway store. It’s currently open for investment, with a minimum $50k investment, targeted annual return of between 14-14.5%, and a targeted equity multiple between 1.4x and 1.5x. 

Register for the webinar on Calendy, here.

The Route 17K Self-Storage project, offered by Diversified Properties, is now open for investment, and as of the writing of this newsletter, is 90% funded. The deal, on CF platform RealtyMogul, boasts a target IRR right around 20.2%, a target equity multiple of 2.06x, with an estimated hold period of 4 years. Check it out before it is fully funded, here.

General Crowdfunding Industry News

Shawn Lese, the CIO and Head of Funds Management for the Americas at Nuveen, recently joined CrowdStreet’s advisory board. The move follows an injection of capital into the firm of $43 million this past October, with one of the major investors in that capital raise being TIAA Ventures, which like Nuveen, is an affiliate of TIAA. 

The move is seen as the first step in a closer relationship between the two firms. Nuveen has plans to raise equity capital on CrowdStreet, and both firms have signified their intention to participate in investments as joint-venture partners and perhaps develop financial products together. Get the rest of the scoop on Commercial Observer, here.

Crowdfunding Platform Updates

The New Year means new results from companies and other financial-oriented orgs. On January 18, 2023, Yieldstreet released its platform-wide performance report. In the report you’ll find a full list of all offerings launched on the platforms and various related metrics, including realized performance, asset class, as well as info on individual deal basis and data on those deals that have matured. 

The report shows that Yieldstreet has delivered strong returns for investors across several private market offerings. If you’re interested in Yieldstreet, or just want to check out their performance in 2022, read the report for yourself on their official site, here.

SEC Filing Data

We saw declines in the total number of Reg D (c) deals, which dropped from 10 in Week 2 to 9 in Week 3. We also saw a decline in Reg D (b) deals which dropped from 42 in Week 2 to 37 in Week 3 of this month. The total amount raised also declined significantly coming in at $0.40 BN this week, a little less than half of the total in Week 2. Examine GowerCrowd’s proprietary 506(b) and 506(c) data, here.

Multimedia Links (Videos, Podcasts, etc.)

As always, we’re going to finish off with a crowdfunding-related podcast. This week, we’ve got a discussion with Andrea Petersen, founder of crowdfunding platform School of Whales. She sat down with the host of podcast “The Greatness Machine,” to talk about the experiences she’s had across a wide array of sectors, from renewable energy to commercial real estate. 

Andrea and the host go into deep detail regarding several topics that are near and dear to my heart, including real estate investing, crowdfunding, entrepreneurship, and much, much more. Give it a listen for yourself, at Listen Notes, here.

That’s it for this week- but we will see you soon with lots more crowdfunding news stories, new deals, platform updates, podcasts, and more! See you then!

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