Real estate crowdfunding platform Realty Mogul, has shared that an offering involving a Class B retail center in San Antonio, TX has performed beyond expectations. According to company representatives, investors in the project have recently been repaid 100% of their initial investment – together with accrued preferred returns – after only nine months of being involved with the project. These same investors will continue to receive the excess distributable cash flow of the property and any appreciation of the property when it is eventually sold. They will receive continuing returns on an investment for which their principal has been 100% fully repaid.
“We believe that this is the first ‘full circle’ deal that’s occurred in the real estate crowdfunding industry,” said Jilliene Helman, CEO of Realty Mogul. “Our investors knew when they bought in that the primary sponsor of this opportunity RTI Capital, LLC, had already made great strides in leasing up the property from the time that it had originally been acquired. Everything paid off in spades when, based on the significantly greater in-place cash flow that the sponsors worked to achieve, they were able to re-finance the property for a significantly higher valuation. This, in turn, permitted the early repayment of investor contributions.”
The retail property located in San Antonio, constructed in 1984, was purchased during the great recession. The 135,000 sq. ft. space was originally struggling with high vacancy rates and needed additional capital to upgrade the property. The project sponsors needed this funding at the time of the investment by Realty Mogul subsequently driving occupancy up to 86%.
“It was a pleasure working with Realty Mogul when we required additional funding for this retail center,” said Brian Shniderson, Principal of RTI Capital. Through this innovative new platform, we were able to make improvements to the asset and generate good returns for Realty Mogul investors.
“We’re of course quite happy that our investors received such strong investment results so quickly,” said Ms. Helman. “We had originally anticipated that the sponsors might be able to refinance the property in about three years. For our investors to receive a full repayment of their capital contributions – along with the preferred returns that had accrued in the interim – in such a short time — a mere nine months — is nothing short of astonishing.”
Realty Mogul has facilitated over $43 million from accredited and institutional investors since the platform launch. This funding has been provided to 153 different properties across the United States.