On Thursday, RealtyShares announced its first commercial real estate deal that was funded on an off-platform institution delegate lender relationship. This deal was done with Pittsburgh-based apartment complex owner and operator, BG10 Properties.
According to RealyShares, BG10 secured $1.1 million through the deal for a multi-family property acquisition located in Bellevue, near downtown Pittsburg. The company notably chose RealtyShares to raise debt capital for stabilized property acquisition and will be adding a 26-unit apartment complex to its portfolio thanks to this deal. Sharing details about the acquisition, Daniel Croce, Principal at BG10, stated:
“We decided to arrange financing through RealtyShares because the terms offered were the best in the market. By utilizing RealtyShares’ expertise and relationships, we closed a deal with financing that will allow us to optimize our cash flow and total returns.”
Anthony Dagati, Business Development at RealtyShares, added:
“BG10 Properties was able to raise low-cost capital from one of RealtyShares’ trusted outside lending partners in our first off-platform commercial real estate debt transaction. While we tend to see more value-add property opportunities on our platform, this stabilized asset, which was renovated as recently as 2014, has positive near-term upside through raising in-place rents to at-or-near market rental rates post-acquisition.”
To date, RealtyShares’ network of investors has funded $200 million from more than 400 investment opportunities on the platform, funding residential and commercial projects in 31 states. Last week, the real estate crowdfunding platform 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.
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