On Monday, RealtyShares announced it completed the initial close of its diversified marketplace equity fund. According to the real estate crowdfunding platform, the fund is set to enable investors to access a diverse portfolio of real estate investments through a single contribution.
RealtyShares revealed that the fund was created for qualified investors and institutional partners, offering the opportunity to efficiently invest in middle market real estate. Each investment is to be a part of a portfolio of 10 to 20 properties selected by RealtyShares’ team of experts. Investors are also able to benefit from depreciation tax benefits, a feature that can be favorable to investors looking to reduce their taxable passive income.
“These RS Funds are a part of a broader strategy to provide investors exposure to middle market real estate, including those who lacked access to the asset class or found it inefficient. The fund format allows for diversification within one investment with alpha-generating potential created through our focus on capturing the illiquidity premium found in middle market real estate. This product is potentially perfect for investors who want asset-type or geographic exposure at low fees without the idiosyncratic risk associated with investing in one asset.”
RealtyShares also noted the fund is mandated to invest in middle market real estate transactions that are $50 million and smaller, encompassing deals in opportunistic pockets within primary markets and compelling secondary markets. The crowdfunding platform intends to focus investments on value-add multifamily and commercial projects in various U.S. states such as Arizona, California, Florida, Illinois, New York, North Carolina, Texas and Virginia.
“Until now it has been difficult for many qualified investors to access the type of real estate transactions that are being targeted with this fund. With a relatively low capital requirement, investors should be able to greatly simplify the process of investing in a large, diverse portfolio of real estate deals, at a discounted price, with the expert discretion of our team of qualified asset managers. We are pleased to offer this opportunity to investors seeking to expand their real estate portfolios.”
To date, RealtyShares’ users have funded upwards of $200 million across more than 400 investment opportunities on the platform, funding residential and commercial projects in 31 states.