Real estate crowdfunding platform RealtyShares announced on Tuesday its network of accredited investors secured $3.5 million in equity capital for the $67.3 million acquisition and renovation of Avesta Biscayne in North Miami, Florida. The funding portal reported that this is the largest equity investment it has raised to date.
According to RealtyShares, Avesta Biscayne is a 402-unit apartment community near the Biscayne Bay shoreline, consisting of six mid-rise buildings and amenities including a clubhouse, two pools, and a tennis court. The deal is sponsored by Avesta Communities, which is a vertically integrated multi-family owner-operator specializing in apartments serving the middle-income renter. The website also noted that Avesta previously raised $2.25 million through its platform to recapitalize and renovate Avesta Bridgewater, a 344-unit apartment complex in Orlando. Andre Gonzalez, an associate at Avesta, stated:
“We are excited to continue our partnership with RealtyShares through Avesta Biscayne. Avesta is committed to growing our capital base through crowdfunding, and we look forward to partnering with RealtyShares again in the future. As demonstrated by our previous experience with RealtyShares, their ability to serve as the intermediary between sponsors and investors maximizes efficiency, and allows Avesta to focus on adding value to our communities and capital partners.”
RealyShares also revealed that Avesta intends to invest $3.79 million in renovations, including unit upgrades and exterior improvements, to reposition the property. Bryan Schultz, Vice President of Equity Investments at RealtyShares, added
“This deal demonstrates our ability to raise increasing amounts of equity for quality real estate assets alongside highly experienced and successful sponsors such as Avesta. The deal itself is especially interesting as it is situated in a high barrier-to-entry submarket of a top-tier multi-family investment market. Located within close proximity to Miami’s downtown and beaches, this development offers desirable living features, including nearby shops and highway access.”
To date, RealtyShares’ network of investors has funded nearly $300 million across more than 550 investment opportunities on the platform, funding residential and commercial projects in 35 states.
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