EarlyShares Launches Institutional-Quality Real Estate Investment from Pillar

EarlyShares, a real estate crowdfunding platform that gives accredited investors direct access to commercial real estate opportunities, has launched a new investment opportunity from Pillar, a respected commercial real estate lender and affiliate of Guggenheim Partners.

Pillar 2The offering is for participation interests in a $1.4 million mezzanine loan in the Racquet Club Apartments in Lancaster, California. This class of investment is traditionally only available to institutional investors, but Pillar is opening the deal to all accredited investors for a $25,000 minimum investment.

The Racquet Club Apartments is a 200-unit apartment community is in Los Angeles County. Pillar is offering investors a 9.00% return on the interest-only mezzanine loan, which has a maturity date of December 6, 2019.

At closing, $1,138,000 ($5,690/unit) was escrowed to fund capital improvements, including $500,000 ($2,500/unit) for interior upgrades. Rent levels at the property were at the lower end of the competitive set identified by the appraiser, providing for upside rent potential.

Anand N. Gajjar, Principal and CEO of Pillar, stated:

Pillar 1“Our team at Pillar is very excited to be crowdfunding this mezzanine loan on EarlyShares. We have deep experience in this type of commercial real estate asset, but we’ve typically only worked with institutional investors on these kinds of deals. Hosting this offering on EarlyShares will help us broaden our reach to new investors who have traditionally been unable to access institutional-quality investments.”

Joanna Schwartz, co-founder and CEO of EarlyShares, added:

Joanna_Schwartz-495225ab8b54cc673f76efa1e1bda584“EarlyShares is committed to working only with highly respected real estate developers, lenders, and investment firms – and Pillar is a sterling example. Accredited investors can rarely participate in deals underwritten by lenders of Pillar’s caliber. We’re thrilled to be working with this Guggenheim Partners affiliate and we hope a wide array of investors will take advantage of this opportunity.”

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