Individual Investors Get Access to Institutional-Quality Commercial Real Estate Through Crowdfunding
NEW YORK – Sept. 26, 2017 – ArborCrowd, an online commercial real estate company, announced the opportunity for investors to own equity interests in a multifamily property with tremendous upside potential. Quarry Station Apartments (the “Property”) is located in San Antonio, Texas in the desirable neighborhood of Alamo Heights.
Watch the property tour video here.
The total capitalization of the deal is $40.8 million, and ArborCrowd is raising $3.2 million in equity. The Property has a targeted 16 percent to 19 percent Internal Rate of Return (IRR) and a projected hold period of two to four years. The business strategy for Quarry Station is to increase effective rents and the overall value of the Property in order to quickly turnaround and sell to a potential buyer.
ArborCrowd’s leadership team has established long-term relationships with a network of institutional real estate sponsors. This is one key factor for how ArborCrowd is able to source quality deals for investors.
“There are very few opportunities for investors to get access to institutional-quality deals,” said Ivan Kaufman, Co-founder and CEO, ArborCrowd. “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.”
“Quarry Station has significant potential that our Sponsors know how to unlock – that is the key to a successful deal,” said Adam Kaufman, Co-founder and Managing Director, ArborCrowd. “ArborCrowd’s sweetspot is finding multifamily assets that need physical and operational improvements, and turning them around at a profit. For the past 30 years, we’ve proven our ability to be successful at this time and time again.”
ArborCrowd’s investment model is unlike other crowdfunding platforms – the quality of the real estate is at the core of the business. Other models pool investors’ money into funds that are blindly allocated to different assets. ArborCrowd created a better way to invest by providing investors the transparency and knowledge to choose what deals their money goes into. As a result of this unique business model, all of ArborCrowd’s deals have quickly subscribed with the most recent deal – Lago Paradiso – raising $4.2 million in less than two months.
Quarry Station Apartment Highlights
Built in 1993, Quarry Station has 18 buildings with a total of 306 units. The prior owners of Quarry Station mismanaged the property, resulting in long-term maintenance issues, declining reputation of the apartment complex and units leased at below value. Unable to resolve these issues, the previous owners listed the Property.
The Sponsor purchased the Property in June 2017 because of the significant upside potential. In only a few months, the Sponsor has made significant progress on the repositioning strategy, which includes:
Fixing mismanaged operations by the previous owners;
- Performing property upgrades and neglected maintenance; and
- Conducting full gut-renovations to approximately 20 units as a proof-of-concept to an eventual buyer of how to unlock even more potential revenue.
To access the full business plan for Quarry Station, go to: https://arborcrowd.com/offerings/.
ArborCrowd breaks down the barrier of entry into real estate investing. By allowing people to co-invest with successful real estate deal-makers in the industry, ArborCrowd enables millions of investors to maximize their financial returns. At every step of the deal process, ArborCrowd stays alongside investors and takes the weight of managing properties off their shoulders.
ArborCrowd is part of the Arbor family of companies that includes Arbor Realty Trust, Arbor Commercial Mortgage and AMAC.
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