Southern US Crowdfunding is Coming Into its Own in 2022.

We’re entering the 2nd week of the year, and there is no lack of new real estate crowdfunding deals, news stories, and platform updates- all of which we’ve collected for you here on GowerCrowd. We’re going to look at an interesting Atlanta multifamily project, an in-depth piece on CNN exploring ways that investors can gain exposure to real estate without having to bet the farm on a single asset, as well as a new acquisition by Fundrise. Let’s get into it.

New Crowdfunding Platform Deals

In what has become a running theme here at the newsletter, and in the real estate markets in general, we’re going to take you down to Atlanta, Georgia, where skyrocketing valuations and global investor interest have transformed many parts of the South from sleepy cities, suburbs, and rural areas, to highly desirable spots for real estate investors from across the globe. The Halsten at Vinings Mountain is a value-add multifamily property located in Atlanta, just minutes away from the 1.5M SF Battery Atlanta development. 

It also sits within close proximity to 16 different Fortune 500 HQs- a distinction one might assume of NYC, Boston, or San Francisco rather than the “sleepy” South. The Halsten at Vinings Mountain has a targeted investor IRR of 17.2%, a targeted equity multiple of 1.6x, a targeted average cash yield of 7% and a targeted investment period of 3 years. Check out this exciting Atlanta multifamily property at CrowdStreet, here.  

Next, we’re going to take a trip across the country, to the Mullen Farm, a 169-acre alfalfa, vegetable, and sugar beet farm, which sits in one of California’s prime agricultural zones, Imperial County. This region is particularly well-known for vegetable crops, a nearly $1 billion industry as of late 2020. Other than vegetable crops, Hay-based crops like alfalfa and Bermuda grass are also heavily produced in the region, often used as feed hay for livestock from Beijing to Birmingham. 

You can’t really discuss farming in California without water rights- a particularly hot button issue over the last few decades. Luckily for investors, the Mullen Farm sits within the Imperial Irrigation District, and is serviced by senior water rights from the Colorado River. In drought years, which are not uncommon in the state, senior water rights guarantee Imperial County a higher priority in water allocation than other nearby counties. Additionally, this investment will continue within the capable hands of the existing farming tenant, helping to ensure continuity of operation. Learn more about this California bread basket farm opportunity at AcreTrader, here. 

General Crowdfunding Industry News

While CNN is not typically the “go to” source for financial news, they recently published an excellent long-form piece exploring ways that investors can get involved in real estate without having to take out a mortgage or dedicate an unhealthy level of portfolio allocation to a single asset, like a million dollar home or a $5 million commercial property. The piece covers the two primary ways investors can benefit from fractional real estate ownership, including REITs, and yes, our old favorite, real estate crowdfunding. Check it out at CNN, here.

In another sign of the growing maturation of the crowdfunding industry as a whole, the SEC recently entered a final judgement against a Georgia real estate company owner, Russel Craig, and his company, OneStep Financial, in a financial fraud where Craig bilked 6 investors out of more than $1.3 million. Craig solicited funds from these investors to be used in various real estate developments or acquisitions, but rather than making good on his promises he misappropriated investor funds for his own use. 

While every industry has its share of flim flam artists and scammers, it’s a good sign that authorities are beginning to crack down in a serious way on bad actors within the space. Read more about this story, and other recent SEC enforcement actions, right here at GowerCrowd.

Crowdfunding Platform Updates

As always, we’re going to finish with a platform update, this week from Fundrise. First, we’ll head down to sunny Phoenix, Arizona, where Fundrise recently acquired a new property on behalf of investors, a last-mile distribution facility which they believe shows tremendous promise- largely due to the trends and major changes to how we shop for goods that have only accelerated during the pandemic. 

The 213,229 square foot distribution center sits in Goodyear, Arizona, and was acquired for approximately $30.6 million. It’s located just 20 minutes from downtown Phoenix and just a mile off of I-10, a major highway that runs from Jacksonville, Florida, all the way to Los Angeles, California. Check it out at Fundrise, here.