Realty Mogul, a real estate marketplace for accredited investors in pre-vetted investment properties, has announced the first-ever crowdfunded self-storage facility. This private placement, traditionally offered only to larger institutional investors, will help enable the conversion of the property into a branded StoreSmart facility, bringing with it a new management team.
The capital infusion into the newly-acquired 168,540 square foot self-storage facility, in Fayetteville, North Carolina, will smooth the transition into a new operating center for StoreSmart.
StoreSmart has been named one of the top self-storage operators in the US by Inside Self Storage Magazine.
“The fundamentals of both the property and its market area are solid, said Jilliene Helman, Realty Mogul Co-Foundera and CEO. The facility is in a strong market area but had below-market overall occupancy due to the deferral of some needed renovation as well as leasing and management issues that we believe can be corrected by our partners in the transaction, StoreSmart. It’s also clear that the Fayetteville self-storage submarket has been very strong recently. We believe that the strategic renovation and rebranding program proposed by StoreSmart can bring the facility up to standards consistent with a Class A self-storage facility and get the occupancy rate back to market levels.”
Helman continued to comment on the project,
“We’re very pleased to be the first real estate crowdfunding company to get a self-storage facility under our belt, and delighted 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 self-storage transaction now joins the many multi-family apartment buildings and retail shopping centers that we¹ve already handled nationwide.”
“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 but it¹s important that our investors have a chance to diversify across the various market segments, so we¹ll continue to bring them all types of commercial real estate investment opportunities.”
Realty Mogul’s marketplace allows investors to become equity holders in real estate opportunities that were historically difficult to access. Through the use of the Realty Mogul platform, investors can browse and screen real estate investments, view details of an investment and sign and complete legal documents online.
When investing in a Real Estate Investment Trust (REIT), most investors have little to no information regarding actual properties the REIT invests in. With Realty Mogul, investors can invest in individual properties giving added transparency and control over investment selection and location.
RealtyMogul just recently surpassed the $10 Million mark on money invested through the platform representing over $50 Million in properties funded. Investment structures include both debt and equity. In general the platform currently looks to generate an IRR of around 15% for their equity transactions. The platform currently accepts only accredited investors but contingent upon final regulations from the SEC, Realty Mogul would like to offer investments on their platform to retail investors as well.
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