On Wednesday, RealtyShares announced it financed a $500,000 preferred equity investment to fund the acquisition and rehabilitation of a 22-unit multi-family property in the San Francisco Bay Area called Greenleaf Apartments. The real estate crowdfunding platform reported that the project is being sponsored by Tesseract Capital Group (TCG), a San Francisco-based real estate private equity firm that currently holds ownership interests in over 1,500 multi-family units nationwide.
According to RealtyShares, the apartment complex is close to accessible transportation throughout the San Francisco-Oakland-Fremont metropolitan area. With the funds, TCG will do interior and exterior renovations on the property along with manage rentals during the term of ownership. Benjamin Jiang, managing partner at TCG, stated;
“TCG has now partnered with RealtyShares to fund its last two real estate projects and we firmly believe that real estate crowdfunding has tremendous upside as a capital source. Diversified capital is a critical component to any successful private equity firm, and RealtyShares has proven capable of not only providing reliable funding, but also serving as an organic marketing tool for our firm. We’ve been able to expand our reach to investors all around the nation through a very simple process, with ample assistance from the RealtyShares team at every step.”
Bryan Schultz, vice president of commercial equity investments at RealtyShares, added:
“This is a unique opportunity for our investors to access an attractive preferred equity position on a completely off-market acquisition. The location is ideal for Bay Area commuters, with access to BART, a key transportation line within walking distance. TCG is well-equipped to reposition this property for significant potential near-term gains with a very reasonable loan-to-cost ratio.”
Greenleaf Apartments is considered the second property acquired by TCG in Hayward.
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