A Big Month on the EquityMultiple Platform
This learning series on Modern Commercial Real Estate Investing first appeared on the EquityMultiple blog. Please check in there for updates and additions to this series.
Earlier this year we provided a summary highlighting the performance of our cash-flowing assets in calendar year 2018 — significantly exceeding returns of both the S&P 500 and public REITs. As outlined, EquityMultiple remains focused on the preservation of investor capital, and on long-term, sustainable growth.
That said, our core business — offering pre-vetted, private market commercial real estate investments to accredited individuals — continues to gain momentum and the EquityMultiple platform recently surpassed a number of milestones.
Here are a few recent highlights from the EquityMultiple portfolio:
Our Highest Transaction Volume Month
EquityMultiple’s nationwide network of accredited individuals continues to fund more and larger transactions. In the month of April 2019, we raised $5.7M, the highest figure for a calendar month in our history.
During the 30-day period from April 19th through May 19th we experienced even greater volume, with $7.4M raised by EquityMultiple investors.
We expect this growth in transaction volume and size to accelerate in the months ahead; while you may notice larger raises on the platform, we will strive to offer an array of investments reflecting a diversity of risk/return profiles.
First Opportunity Zone Investment
In mid-March we launched our first Qualified Opportunity Zone investment, an industrial development in the Phoenix metro area, successfully raising over $2.4 million for this tax-efficient offering. Our approach to Opportunity Zone investing remains consistent with our fundamental business: sourcing, underwriting, and offering discrete, private-market commercial real estate investments while simplifying and automating the investing experience for accredited investors.
Opportunity Zone investing remains new territory for all investors. We observed a sharp increase in investor demand after the Treasury Department released its second set of proposed regulations on April 17, 2019. Our investors are manufacturing capital gains from a wide variety of asset sales — including sale of healthcare practices, stocks, logistics businesses, single and multifamily real estate. We look forward to presenting select Qualified Opportunity Zone investments in the future, and assisting our investors in better understanding and ultimately benefiting from participation in offerings that align with their overall investment goals and tax considerations.
Crossing the Billion Dollar Mark
As of mid-May, EquityMultiple investors contributed capital for commercial real estate projects accounting for over $1 billion in total capitalization. We believe that this figure speaks to the growth of our investor network, the maturation of our origination practices, and high quality of the commercial assets on the EquityMultiple platform.
We look forward to the second billion (and beyond) of total real estate value on the EquityMultiple platform. To discuss any specific offerings on EquityMultiple, or our platform more generally, please schedule some time with our Investor Relations team.
