The crowdfunding phenomenon has reached industrial. Acquire Real Estate sold out its first crowdfunding investment in that sector at a sprawling building just 20 miles south of Boston. We asked president Josh Klimkiewicz about the deal.
A dozen investors from across the country bought into 57 Littlefield St in Avon, a $16.5M, 407k SF industrial property occupied by five tenants. Contributions ranged from $3k to $100k, and investors are projected to receive an average annual return of between 8.5% and 11% paid quarterly over a three- to five-year term.
Acquire pre-funded its investment in 57 Littlefield, as it does with all of its crowdfunding investments. Josh tells us Acquire is one of only a few platforms that does this, helping eliminate funding risks to sponsors while also insuring investor interests remain aligned. In addition to pre-funding, Acquire works with only a select group of sponsors with proven track records.
Josh used to be the CBRE/New England VP of Capital Markets. He found inefficiencies in raising capital and also saw a need for accredited investors to have more direct exposure to the commercial real estate market. The New York-based firm launched its crowdfunding platform in January 2015 and has sold out several transactions, including Middlebury Commons, a 38k SF retail center in Vermont. Late last year, the company quickly sold out an opportunity in Pompano Marketplace, a 238k SF fully occupied retail center in Pompano Beach, FL.
A typical opportunity on Acquire’s platform will attract 12 to 25 investors, Josh says. He feels his firm’s experience in the industry combined with its ability to pre-fund all of its deals help set Acquire apart in the exploding crowdfunding industry.
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