Crowdfunding platform seeks funding, launches new $40m property investment


Online commercial real estate company AborCrowd seeks $3.2m equity fundraise and also opens apartment block for investments.

The deal for the Quarry Station Apartments, which are located in San Antonio, Texas, will have a total capitalisation amount of $40.8m. The property is targeting a 16 to 19 per cent IRR and an expected holding period of two to four years.

ArborCrowd is a real estate crowdfunding platform which lets investors get involved with the commercial real estate sector, by allowing people to co-invest alongside real estate deal-makers.

Quarry Station Apartments, which was built in 1993, consists of 18 buildings and 306 units. Since the sponsor purchased the block in June, the building has had 20 units fully ‘gut-renovated’, had mismanaged operations fixed and several property upgrades.

The plan for the apartment block is to increase effective rents and the overall value of the property to ensure a quick turnaround and sale to new buyers.

ArborCrowd co-founder and CEO Ivan Kaufman said, “There are very few opportunities for investors to get access to institutional-quality deals. Every deal we offer – including Quarry Station – is measured against the standards and benchmarks of what a real estate institution would expect. That’s the difference in what we offer compared to other crowdfunding platforms.”

Investments in to the PropTech sector have slowed down in 2017 so far, with only $403m being funding into companies, which is compared to last year recording $2.2bn.

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