Survey Finds 98% Intend to Place Real Estate Investments in 2022

This week in the newsletter, we’ve got a ton of new deals, including a New Value-Add Texas Opportunity from RealtyMogul, a tested & proven value-add multifamily opportunity over at CrowdStreet, and a high-yield orchard available at AcreTrader. We’ll also review a piece that takes a high-level view of the commercial real estate markets, and why so many people are choosing to park their capital in the space through REITs, direct ownership, and of course, real estate syndications. Finishing up, we’ll cover platform updates from Fundrise and EquityMultiple.

Let’s get this party started!

New Crowdfunding Platform Deals

Our first stop will be in the great state of Texas, where RealtyMogul is offering up ReNew at TPC, a value-add multifamily opportunity located deep in the heart of Texas, in San Antonio. This 408-unit apartment property was built in 2007 and is centrally located near some of the biggest employers in the city, including Sonterra Medical, JP Morgan Chase, Southwest Airlines, Amazon, and RidgeWood Park. 

The property, sponsored by DB Capital Management, offers investors a 15.3% target IRR, 5.6% target cash on cash, and a 1.96x target equity multiple, as well as an estimated hold period of 5 years, a minimum first investment of $35,000, and an estimated first distribution in August 2022. Check it out on RealtyMogul, here

Now we’re going to head about 200 miles east, to the “Space City” Houston, Texas, where CrowdStreet has a new offering, The Villas at Valley Ranch, a Class-A multifamily property that sits at the center of the rapidly growing areas in and around North Houston. The property sits in a master-planned community in a prime location, backed by a proven record of success from the sponsor, Keener Investments II, LLC.  as well as an already proven business plan. This multifamily deal has a targeted investor IRR of 17%, a targeted equity multiple of 1.6x, a targeted average cash yield of 8%, and a targeted investment period of 3 years. 

You can learn more about The Villas at Valley Ranch on CrowdStreet, here.

We’ll finish our look at some of this week’s new deals with a stopover in Sunny California, to the state’s breadbasket, the Central Valley. There you’ll find the Adams Avenue Pistachio and Almond Orchard, a 410-acre nut orchard in a region that supplies more than 80% of the world’s almonds, and almost 50% of all the pistachios in the entire world. 

This AcreTrader opportunity gives investors the ability to own a piece of the orchard as it begins to reach full commercial production, buoyed by the strong water rights connected with the orchard- a big deal in water-starved California. AcreTrader held a webinar reviewing the project on March 10th, you can find a copy of that here.

General Crowdfunding Industry News

Even before the volatility-inducing war in Ukraine, investors of all stripes have been increasingly focused on real estate assets as a potential shelter against a stormy world economy.  In CrowdStreet’s 2022 Investor Benchmark Survey, the crowdfunding platform found that 98% of respondents planned to make at least one private equity real estate investment this year, compared to 65% of respondents saying they would invest in stocks and bonds. The firm raised a total of $1.2 billion last year and is on pace to smash that record in 2022. 

In this piece at PR Newswire, CrowdStreet lays out the case for what they think is going to happen in 2022 in the real estate markets, with a particular eye on real estate crowdfunding. The article itself, as well as the 2022 Investor Benchmark Survey, are both must-reads if you want to be truly informed about the happening in the crowdfunding space.

For the past year or so, we’ve covered the story of Eric C. Malley and his company, MG Capital Management, the pair of which have been caught in an ongoing fraud scandal, with charges brought by the SEC for mismanagement of funds and misrepresentations made to investors about the background and skill of Mr. Malley. After a year, the case is now complete, with Malley and MG Capital being required to pay restitution, pay back any ill-gotten gains, as well as face other criminal penalties in a separate case. You can read about this fascinating story of real estate fraud here at GowerCrowd, just click here.

Crowdfunding Platform Updates

As always, we’ll finish up with a couple of new platform updates, in this case, Fundrise and EquityMultiple. 

Fundrise recently spent $128 million helping to expand SaltBox’s warehouse space and co-working space. SaltBox is an up-and-coming player in the e-commerce and logistics spaces, offering up integrated logistics services as well as other amenities like rental equipment and packing supplies. The additional capital comes on the heels of a $10.6 million Series A round in 2021. This year, the funds will be used to raise the firm’s profile nationally, and expand outside of their primary market, Atlanta. You can read more about SaltBox and Fundrise’s investment in the firm, here.

Crowdfunding platform EquityMultiple recently reported some impressive numbers from last year. According to a report released by the firm, they returned more than $79 million to investors last year, which is more than double the same number in 2020. Investments exited in 2021 generated a weighted average of 18.7% for investors, and the firm closed almost $116 million in new investments in 2021- the highest volume on record for the company. Read more about EquityMultiple’s very good year, here, on Crowdfund Insider.

That’s it for this week- but don’t fret- we’ll be back next week with plenty more stories, deals, crowdfunding platform updates, and more. See you then.

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