Origin Capital announced it’s new real estate crowdfunding platform in September of 2015. Origin is a real estate investment management firm with approximately $500 million of real estate under management. At the time of the announcement, Origin stated they wanted to facilitate far greater access for investors at 1/10 the investment minimum previously required. Origin is now crowdfunding its first commercial building in Denver.
Origin co-founder Michael Episcope explained that real estate crowdfunding is growing fast. Predictions place over $3 billion raised via crowdfunding for 2016. But Origin is matching its goals with investors; “we’re not marketing other people’s deals. Our firm owns Denver Corporate Center and will own it for the same period as our investors,” said Episcope.
Partner David Scherer commented on the investment minimum which stands at $10,000 for accredited investors;
“This is about opening up high-quality, privately held real estate to investors who previously could not access firms such as ours. The minimum investments were – and at most firms still are – too high for people to reach.”
The company reports that both Scherer and Episcope have personally invested approximately one-third of all of the equity in the firm’s acquisitions to date.
Founded in 2007, Origin focuses on acquiring apartment and office buildings in eight target markets. The firm is currently raising its third fund, with a $150 million target, of which Episcope and Scherer are investing $10 million. The specific crowdfunding offer is for a Denver Corporate Center I (or DCC I) which is an eleven story office building. Origin has partnered with Hamilton-Titan to acquire the real estate for $23 million. The structure is currently 83% leased and the joint venture plans on doing significant improvements.
Scherer explained their methodology last year;
“Our process is simple. We buy right, capitalize appropriately, and maximize value through a hands on management approach.”
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