On Tuesday, Chicago-based real estate crowdfunding platform PeerRealty announced it has successfully crowdfunded two separate senior housing investment opportunities.
The website’s user base of accredited investors used the online crowdfunding platform to help fund the Village Pointe Commons senior housing development project in Grafton, Wisconsin, as well as to help fund an acquisition of five Kansas senior housing and skilled nursing facilities.
To celebrate the completion of these offerings, PeerRealty is also announcing an offer giving a $500 credit to any investor who invests in one of PeerRealty’s current offerings from now until the end of 2015. PeerRealty CEO Jordan Fishfeld, stated:
“When we first listed these two offerings on our platform, we knew they would be popular with our investors. With nearly 10,000 baby boomers turning 65 today and every day for the next 20 years, our investors found senior housing to be an attractive investment option. These successful offerings demonstrate the potential that real estate crowdfunding offers to investors looking to diversify their portfolios.”
The Village Pointe Commons offering consisted of an opportunity to invest in the development and ownership of a 227-unit senior housing campus in the village of Grafton, Wisconsin (located in the Milwaukee MSA). The project broke ground in September 2015, and is due for completion by early-to-mid 2017 with initial units ready for occupancy by late 2016. Accredited investors are projected to receive an internal rate of return of 20-22% over the 5-10-year term of the investment. The sponsor of the project was Heritage Capital Assets.
The Kansas portfolio offering consisted of an opportunity to invest in the acquisition of five senior housing facilities (four nursing homes and one independent living facility) in the cities of Topeka, Wichita, Salina and Herington, Kansas. The sponsor of the project and acquiring entity was Birchwood Health Care Properties, whose corporate office is located directly in the middle of this portfolio. Accredited investors are projected to receive an internal rate of return of 30-31% over the 10-year term of the investment.