Real Estate Value Advisors (REVA), based in Richmond, has listed REVA Raleigh Colonnade DST on EarlyShares as it seeks to raise $10,212,500 in equity crowdfunding. The building was originally purchased in January for $27.54 million.
According to the offer page, investors are expected to see an IRR of between 9.86% to 16.4% for an expected hold period of 5 years. Minimum investment is $53,750. REVA is calling this the largest ever investment crowdfunding offer in the US.
REVA states that this offering through EarlyShares is structured to let investors put 100 percent of their investment to work for them. Rather than losing as much as 30% of the investment income to taxes through capital gains, with the 1031 Exchange investors can let the capital continue to mature and defer the taxes.
The 126,926, five-story Colonnade II was completed in 2008, with Salix Pharmaceuticals occupying the building in 2011 as its global headquarters. The property is fully occupied today.
REVA Managing Director Steve Sadler said the current lease has a strong upside, with in-place rates 20 percent below market. “We’re confident that this property will deliver the strong cash flow that investors have come to expect from REVA in both rising markets and falling ones.”
REVA states it has completed over $200 million in Reg D syndications of commercial office buildings. Today the firm serves 400 investors with a portfolio of nearly $1 billion in assets stretching from the upper Mid-Atlantic region to the Florida coast and west to Georgia and Texas.
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