Realty Mogul, a leader in the real estate crowdfunding arena, has Successfully crowdfunded their first ever shopping center. Realty Mogul is having a good few weeks after announcing hockey stick growth in October. The crowdfunding for the shopping center was completed in less than 6 hours after the company began taking money from investors.
Jilliene Helman, founder and CEO, stated,
“We are very pleased to be the first real estate crowdfunding company to get a retail property under our belt, and ecstatic that we had such a robust reaction from our investors. Our team had been actively searching the market for just such an opportunity, and this new retail transaction now joins the many multi-family apartment buildings that we¹ve already handled nationwide.”
The property crowdfunded is a 133,600 square foot retail shopping center located at the gateway to the Monterey Peninsula in Prunedale, California, just an hour South of San Francisco, California. Current tenants include CVS, Safeway, McDonald’s, Subway and Starbucks. The fundamentals of both the property and its market area are solid, said Helman. The center has strong anchor tenants but had below-market overall occupancy due to the great recession as well as leasing and management issues that we believe can be corrected. It’s also clear that the Monterey County retail submarket has had very a robust recovery recently, absorbing a lot of rentable space and seeing significantly lower vacancies just in the last year.
Realty Mogul will be joined in the transaction by some high-profile real estate investment companies. U.S. Realty Partners specializes in the acquisition, management, and redevelopment of high quality retail properties in the western United States. JG Management, another operating partner, has a current portfolio of four million square feet of commercial real estate spanning across seven states. Zenda Properties, based in Montreal, Canada has acquired over $150 million of office, industrial and retail properties in Canada and the United States over the past 15 years. .
“Commercial real estate is comprised of several major asset classes, and we intend to be a player in most if not all of them,” she said. “Any investment we bring to the platform must have strong cash flow characteristics we¹re kind of conservative that way but it’s important that our investors have a chance to diversify across the various market segments, so we’ll continue to try to bring them all types of commercial real estate investment opportunities.”
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