Real Estate Firm To Use Crowdfunding To Renovate Lincoln Park Apartments
A change to a state law signed by Gov. Bruce Rauner in 2015 expands the ability for real estate firms to raise funds via crowdfunding, and one firm is hoping to do that to renovate a Lincoln Park apartment complex.
Standard & Partners is turning to crowdfunding to raise the capital to rehab 16 apartments at 1955-63 North Lincoln Ave., DNAInfo Chicago reports.
Rauner signed HB 3429 into law in July 2015. The law creates an exemption in the Illinois Securities Law of 1953 allowing companies to raise up to $4M a year via crowdfunding of small investors. Standard & Partners is using VestLo, a crowdfunding platform claiming to be the first of its kind to take advantage of the law by attracting investors placing as little as $1k. Standard & Partners' apartments are renting for below-market rates and the firm hopes crowdfunding can freshen the units and attract market rents.
Standard & Partners is not the first firm to turn to crowdfunding. Peer Realty has offered investors stakes in suburban Chicago shopping centers and River North apartments.