RealtyMogul.com, one of the leading online marketplaces for real estate investing, announced today that the platform has closed an investment into a $21.6 million acquisition. The platform helped finance the acquisition of The Edison Apartments, a mid-rise multifamily property in Chicago, by Spirit Bascom Ventures, a sponsorship joint venture between Stamford, Connecticut-based Spirit Investment Partners and Irvine, California-based The Bascom Group.
“With this acquisition, we saw potential for our investors to benefit both from the market expertise of Spirit Bascom Ventures and from the submarket’s growing Millennial population,” commented Jilliene Helman, CEO of RealtyMogul.com. “As the neighborhood undergoes a demographic transition, we believe the rehabilitation project will allow the property to tap into rising rental rates in the market.”
The sponsorship group, which specializes in distressed and value-add multifamily investments, plans to rehabilitate and renovate the building with the goal of increasing its revenue to levels comparable with those of similar renovated properties in the market. The 223-unit building, currently 97-percent occupied, is situated in the rapidly transitioning Edgewater neighborhood and also boasts 8,850 square feet of ground-floor retail space.
In this transaction, RealtyMogul.com contributed limited partner common equity. Since its inception, RealtyMogul.com has invested more than $25 million in Chicago-area property transactions.
“We specialize in investing $1 million to $5 million into joint venture equity, preferred equity, mezzanine loans and bridge loans, so this investment was a perfect fit for our joint venture equity program,” Helman added. “Through the democratizing force of real estate crowdfunding, we look forward to connecting more investors to opportunities like this one.”
Spirit Bascom Ventures is one of RealtyMogul.com’s largest sponsors to date, representing over $10 billion in combined transactions.