Press

As Americans continue to adjust to the new reality ushered in by the novel coronavirus outbreak, individual investors have kept a watchful eye on the stock market, which has become increasingly volatile. While staying healthy, practicing social distancing and taking care of loved ones should absolutely remain top priorities, many investors are anxious about protecting the value of their portfolios as the economy changes.

ArborCrowd is a very unique real estate crowdfunding platform which is built for a very specific type of investor.

In the eight years since it was authorized by the JOBS Act, crowdfunding has gained a foothold and then some in real estate investing. Sponsors have raised billions of dollars through vehicles that enable retail investors to place capital in a wide range of assets and initiatives.

Join Michael as he gets perspectives from a renowned developer utilizing the crowd, (a developer who has many other funding options, but is choosing crowdfunding) and from two crowdfunding platform leaders sharing strategies and mistakes to avoid.

For the real estate crowdfunding industry to experience stable growth and truly achieve its potential, there must be a shift in priorities. 2020 will be the year where that will start to happen.

ArborCrowd, the first crowdfunding platform launched by a real estate institution, announced today that it will be featured in a case study developed by the NYU School of Professional Studies (“NYUSPS”) Schack Institute of Real Estate. The study, which examines the rise of real estate crowdfunding, and ArborCrowd’s differentiated business model and go-to-market strategy, will be integrated into the Schack Institute of Real Estate’s 2019-2020 curriculum, and will serve as a foundation for students to learn about the nascent crowdfunding sector within the broader context of commercial real estate.

Although it’s a relatively new concept, real estate crowdfunding has become quite popular. It allows a large number of investors to pool together their money and invest in real estate properties they may not be able to afford on their own.

On Tuesday, November 19, Harvard University’s Real Estate Development Club together with ArborCrowd (the “Company”), the first crowdfunding platform launched by a real estate institution, hosted a panel of experts at Harvard University to discuss the future of commercial real estate investing. The panel was attended by graduate students interested in pursuing a career in commercial real estate.

ArborCrowd’s Quarry Station Apartments investment has been realized in less than two years, providing investors with returns higher than initial projections. The property’s $49.35 million sale price generated an internal rate of return of 20.31%, surpassing the original return target of 16% to 19%.

The property, the former Crescent at Alamo Heights at 3400 Treeline Park, had been owned by a venture of Ebex Holdings of Beverly Hills, Calif., and AMAC, an affiliate of Arbor Commercial Mortgage. That venture had acquired the property in June 2017 and later that year raised $3.2 million of equity through the ArborCrowd crowdfunding platform, another member of the Arbor family of companies.