EarlyShares, a real estate crowdfunding platform that gives accredited investors direct access to commercial real estate opportunities, has launched an equity investment offering for Grubb Southeast Real Estate Fund V, LLC. The fund will target real estate investments in metropolitan areas located throughout the Southeast U.S.
Grubb Properties is seeking to raise a total of $20 million for Southeast Real Estate Fund V with more than $10 million already raised. Over the last 25 years, Grubb Properties has completed more than $2 billion in investment transactions, including seven private equity real estate funds.
The objective of Southeast Real Estate Fund V is to create a balanced portfolio of long-term real estate investments that, upon stabilization, will provide predictable cash flow with tax benefits and appreciation potential. Grubb estimates total returns in the mid-teens with an 8% compounding annual return. Investors must receive a return of 1.5x the contributed capital prior to any distributions being made to the fund manager. The hold period is expected to be ten years.
W. Clay Grubb, CEO of Grubb Properties, shared:
“With the Southeast Real Estate Fund V, we are targeting well-located properties with correctable deficiencies in their physical condition, market position, or management. From there we implement a custom, multi-phase plan for each asset – upgrading the property or amenities, reducing operating costs and energy consumption, executing on a tenanting strategy to achieve strong and stable rental income, and securing financing to mitigate interest rate and term risk.
“Grubb is committing $2 million to Southeast Real Estate Fund V so we’re deeply invested in its success. We look forward to welcoming new investors to our community by hosting this offering on EarlyShares.”
Joanna Schwartz, co-founder and CEO of EarlyShares, added:
“EarlyShares is committed to working only with highly respected developers and sponsors with track records of success, and Grubb Properties is a prime example. We look forward to helping Grubb enjoy a seamless, efficient capital raise on our state-of-the-art platform.”
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