Dealflow.com
Real Estate
Historical Lending Club Data
Lending Club illustrates the increasing popularity
of platforms that allow individuals to borrow funds
without dealing with a traditional bank. Investors risk
loss from unsecured loans, but Lending Club offers an
increasingly popular a way for lenders and borrowers to
join forces outside the banking system.
Lending Club offers transparency along with its
services and periodically publishes its performance
data for public review. This breakdown from Nickel
Steamroller shows the rising regard – and returns – for
Lending Club loans since 2007, when the company
had only 603 loans. Since then loan volume, ROI,
dollar volume and loss figures have established positive
trends. Note that the 2014 numbers are for the first
half. At that rate Lending Club is on pace for a 50%
increase in dollar volume over last year.
0
200M
400M
600M
800M
1B
1.2B
1.4B
1.6B
1.8B
2B
$4.8M
$20M
$51.8M
$126.4M
$257.4M
$717.9M
$2B
$1.5B
2007
■ $4.8M
2011
■ $257.4M
2008
■ $20M
2012
■ $717.9M
2009
■ $51.8M
2013
■ $2B
2010
■ $126.4M
2014
■ $1.5B
— Inside —
Peer-to-Peer Lending Meets Online Real Estate - P2P lending
is taking on different shapes as it meshes with online real estate
deal marketing.
(p. 1)
Deal Graphic - Lending Club numbers show the growth of its P2P
lending activity over the last seven years.
(p. 1)
Pitch Events - A listing of 14 demo days, pitch events, and
presenting company opportunities in the coming months. (p. 3)
Real Estate Portals - A List of 34 web-based portals covering real
estate, including locations and links.
(p. 4)
Deal Briefs - Coverage of seven private real estate companies
now raising capital.
(p. 5)
Launched Deal Activity - In the reporting period from July 1
through July 31, we tracked the announcement of 86 new real
estate fundraisings aiming to raise $702.4 million.
(p. 8)
Advertised Deal Activity - Within the set of launched fundraisings,
we tracked the announcement of nine “advertised” fundraisings
worth a total of $68.3 million.
(p . 9)
Peer-to-Peer Lending Meets
Online Real Estate
Peer-to-peer (P2P) lending and microfinance developed as alternatives to traditional banking. These new
models allowed relatively small scale borrowers to crowdsource loans from individuals or large numbers of lenders
for a variety of purposes – buying a car, starting a business,
paying for education.
As P2P-based theory meets the reality of online real
estate investing, the P2P model is moving in different directions when it comes to defining investors: most require
accredited investor status, others establish wealth thresholds according to state exemptions and a few are looking
into letting almost anyone invest. It’s also worth noting
that when it comes to real estate the second “P” in P2P is
less likely to be a person than it is a development project,
platform or fund. (Patch of Land refers to the peer to real
estate marketplace, or P2RE.)
“There is a lot of activity in this space,” Groundfloor
co-founder Nick Bhargava told Dealflow.com. “People are
trying to figure out how to crack the nut. A few successful
platforms know how to bring accredited and institutional
investors into the mix. They don’t do anything for unaccredited retail investors, however.”
Help for those retail investors may come from sources
other than well-known high tech funding portals. Transportation rental company U-Haul analyzed P2P trends
and came up with U-Haul Investors Club, a platform
that allows individuals to invest as little as $100 in a public offering of asset-backed notes for purchasing both
equipment and real estate. There are no minimum income
and net worth requirements, and investors pay no fees to
purchase “U-Notes” in cash, retirement and other types
of accounts. The notes offer a trade-off: while they are secured by real property or other assets, they are illiquid and
have no secondary market.
Groundfloor founders grew impatient with the Securities and Exchange Commission’s slow grind to define
crowdfunding regulations, which Bhargava says became
burdensome and grew to rule out the retail investors they
were to help. So Groundfloor used state exemption regulations as a workaround to avoid the accredited investor
requirements required by most portals. “We’re solving the
problem from the bottom up: all our investors are retail,
and our focus is on creating something innovative for the
rest of us,” Bhargava said. The company recently received
$1 million in seed funding from investors including Inception Micro-Angel Fund.
Continued on page 8
Real_Estate/note_to_readers
Real Estate
Dear Reader,
Dealflow.com
P.O. Box 122
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T (516) 876-8006
F (516) 876-8010
www.dealflow.com
@dealflow
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In this newsletter, Dealflow.com provides information and
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Deal, LLC. Trademarks, trade names, and logos used in this
publication are the property of their respective owners.
© 2014 Dealflow.com™
This isn’t your typical real estate investment newsletter.
For starters, what you’re going to find in these pages is information about launched, or “actively marketed” real estate
deals, not information about deals that have closed. We’re
aiming to give you insight into what will happen as opposed
to what has happened.
Also notable is that although this newsletter covers deals
in the real estate sector, this is just one of the deal markets
Dealflow.com is focused on. Our objective is to track deals
across the capital markets – regardless of deal type or sector.
So be on the lookout for other newsletters based on the deal
type and sector preferences you selected when you signed up
to Dealflow.com.
As a data-driven company, our editorial agenda is to take
no position, either pro or con, for or against, particular deals
or deal-makers. Nothing in this newsletter (or any of our
products) should be construed as investment advice. Please
read our disclaimer.
Regarding our taking no editorial position on companies
mentioned in this newsletter, you will notice that our deal
briefs and data tables are listed in alphabetical order. Again,
there’s no preference or priority given to the arrangement of
the information in this publication.
We’re publishing this newsletter with a monthly distribution schedule. That means you should expect to receive
this newsletter on the 4th Wednesday of each month (except
during holidays). Dealflow.com newsletters covering other
capital markets will have different publication schedules.
As to the scope of coverage in this newsletter, our reporting periods are based on the frequency of publication. This
newsletter is published every month, and the “reporting period” contains data from the previous month. In this publication, we’re covering real estate-related deals (both companies and investment funds) that are marketed in the United
States, though from time to time we may cover financings in
other venues. Issuers may be physically located overseas, but
selling efforts must be U.S.-based for us to track the deal.
One last note on your subscription: This newsletter is
currently free for accredited investors. Dealflow.com has an
“open access data policy” and is committed to sharing information about the markets we cover with the markets we
serve. That means you’ll get this newsletter for free as long as
you meet the required criteria and agree to our terms of use. If
you would like to contribute to this newsletter, we welcome
your input. You can contact us at editor@dealflow.com.
- Steven Dresner
Dealflow.com
2
Real_Estate/pitch_events
Real Estate
Real Estate Pitch Events + Demo Days + Presenting Company Conferences
The table below includes a listing of demo days, investor meetings, and presenting company opportunities focused on raising capital
in the real estate sector. If you have an event you would like listed in this newsletter, email editor@dealflow.com.
Event
Date
Location
URL
Real Estate Shark Tank
9/3/14
Dania Beach, FL
http://www.breia.com/event/shark-tank/
The Crowdfunding Forum for Real Estate
9/8/14
Santa Monica,
CA
http://www.imn.org/real-estate/conference/Crowdfunding-for-Real-Estate/Home.html
Broadmark Capital Webcast
9/10/14
Webinar
http://broadmark.dealflow.com
Practising Law Institute Hotels 2014: Law and
Practice
9/10/14
New York, NY
http://www.pli.edu/Content/Seminar/Hotels_2014_Law_
and_Practice/_/N-4kZ1z12fbc?ID=174681
Haves and Wants Networking Event and Open
Discussion
9/10/14
Naples, FL
http://www.advantaira.com/events/upcoming/
An In-Depth Look at the New Jersey Real Estate
Market
9/11/14
Roseland, NJ
http://www.rela.org/index.php/en/events/26-new-jersey/116-rela-nj-an-in-depth-look-at-the-new-jersey-realestate-market
Crittenden Real Estate Finance 2014
9/15/14
Miami, FL
http://www.crittendenrealestatefinance.com/crittenden-real-estate-finance-conference1.html
Massey Knakal Brooklyn Real Estate Summit
9/16/14
Brooklyn, NY
http://mkbrooklynsummit.com/
The Second Annual Washington, D.C. & Mid-Atlantic Data Center Summit
9/16/14
Reston, VA
http://cre-events.com/dcdc2014/
Investors Resources Center
9/18/14
Winter Park, FL
http://www.ircflorida.net/
InterFace Conference Group California Commercial Real Estate Trends
9/22/14
Los Angeles, CA
http://interfaceconferencegroup.com/trendsca2014/
Caprate Events The Second Annual Northeast
Industrial Real Estate Summit
9/23/14
Jersey City, NJ
http://cre-events.com/industrialre2014/
IMN's Bank Special Asset Conference on Real
Estate Workouts
9/29/14
Chicago, IL
http://www.imn.org/real-estate/conference/Bank-Financial-Institutions-Special-Assets-Real-Estate-Workouts-Midwest/Home.html
Pension Real Estate Association 24th Annual Institutional Investor Real Estate Conference
9/30/14
Los Angeles, CA
http://www.prea.org/fallconference14/index.cfm
© 2014 Dealflow.com™
3
Real_Estate/portals
Real Estate
Web Based Portals Covering Real Estate
The table below includes a listing of online portals that focus only on real estate investing and are actively showcasing deals and
taking investments. Many other real estate portals are currently preparing to go live. The table also includes each portal’s location
and link.
Portal
Location
URL
AssetAvenue
Los Angeles, CA
https://www.assetavenue.com
Blackhawk Investments
San Francisco, CA
http://blackhawkcorp.com/
CrowdMason
New York, NY
http://crowdmason.com/
CrowdTranche
San Francisco, CA
http://crowdtranche.com/
CrowdStreet
Portland, OR
http://www.crowdstreet.com/
CrowdVested
Atlanta, GA
http://www.crowdvested.com/
CRWD
New York, NY
https://www.crwd.com/
DiversyFund
San Diego, CA
http://diversyfund.com/
EquityHunt
Wheatfield, NY
http://www.equityhunt.com/home
Funding Hamptons
Riverhead, NY
http://www.fundinghamptons.com
Fundrise
Washington, DC
https://fundrise.com/
GlobalGroupFund
Brooklyn, NY
http://www.globalgroupfund.com/
Globerex
New York, NY
http://www.globerex.com
GroundBreaker
San Francisco, CA
http://groundbreaker.co/
GroundFloor
Atlanta, GA
https://www.groundfloor.us
High Income Real Estate
Scottsdale, AZ
http://highincomerealestate.com/
iFunding
New York, NY
https://www.ifunding.co/
Loquidity
Grand Rapids, MI
http://www.loquidity.com/en
Money360
Ladera Ranch, CA
http://www.money360.com/
NXGen Capital
Fair Oaks, CA
https://www.nxgencapital.com/
OpenSource Capital
Ft. Lauderdale, FL
http://opensourcecap.com/
PassiveFlow
San Francisco, CA
http://www.passiveflow.com/
Patch of Land
Century City, CA
http://patchofland.com
Prodigy Network
New York, NY
http://en.prodigynetwork.com/
PropFunds
Malibu, CA
http://propfunds.com/#home
Real Circle
San Francisco, CA
http://www.realcircle.com/
RealCrowd
Palo Alto, CA
https://www.realcrowd.com/
RealRite
San Francisco, CA
http://www.realrite.com/
Realty Mogul
Los Angeles, CA
https://www.realtymogul.com
RealtyShares
San Francisco, CA
https://www.realtyshares.com/
Rich-Uncles
Newport Beach, CA
http://www.rich-uncles.com/#top
ShareStates
New York, NY
https://www.sharestates.com/
Sprovy
Austin, TX
https://sprovy.com/welcome
Tycoon Real Estate
San Francisco, CA
https://www.tycoonre.com/
© 2014 Dealflow.com™
4
Real_Estate/deal_briefs
Real Estate
AKA United Nations
Raising: $9,000,000
Sector: Condominiums
Source: Prodigy Network
Blackhawk Investments
Raising: $1,000,000
Sector: Commercial
Source: AngelList
Prodigy Network is raising $9 million for a $90 million
project in Manhattan on 46th Street between 2nd and
3rd Avenues. The AKA United Nations building is currently
operated by AKA as an Extended Stay venue with furnished
one-bedroom apartments with kitchens. Prodigy plans to work
with Extended Stay to allow condo owners to rent out their
dwellings when they are out of town, thus allowing residents to
offset some of their high Manhattan living costs.
At the same time, individuals eager to visit the popular
area will have new hospitality options available in the form of
serviced apartments. The building is close to Times Square,
Rockefeller Center, and the Grand Central Terminal, as well
as many prominent employers such as Morgan Stanley, A&E
Network and Citibank. The 20-story building features 95 units.
The company plans to capitalize on a shortage of moderately
price condominiums at a time when a surge in luxury condos,
almost half of which sell for over $3,000 per square foot,
has put a damper on the market for lower priced dwellings.
Prodigy plans to acquire the building in September, gradually
upgrade its units and begin selling them in early February of
2015. The deal is being marked to accredited investors on the
Prodigy website, and founder Rodrigo Niño told DealFlow.
com that he is optimistic over the potential of crowdfunding
and general solicitation for making real estate investing in largescale developments available to a wider range of buyers.
The financing consists of $9 million in equity being raised
on the platform plus senior debt from Bank of America and
mezzanine financing from real estate advisory Emmes Asset
Management. Two investment scenarios are based on selling
prices of $1,800 per square foot and $2,000 per square foot.
These scenarios would generate IRRs of 38.3% and 51.6% over
an approximate three-year holding period.
The minimum investment is $50,000.
Blackhawk Investments is a real estate peer-to-peer lending
platform that connects investors and borrowers directly online.
The platform matches investors with loan opportunities that
meet their stated investment criteria. Once a successful match
is made, investors have the option to reserve all or part of the
loan amount. After the loan request is fully reserved, then all
necessary documentation will be prepared by third party
licensed professionals for their review.
“We had $10 million in sales in the fourth quarter of last
year and as of right now we have more than $18 million in
our pipeline to fund,” Blackhawk Investments president and
CEO Michael Ping told Dealflow.com.
Blackhawk has also developed online tools and third
party resources to help educate, provide due diligence and all
necessary documents for peer investors to successfully originate
their own commercial notes secured by the peer borrower’s real
estate.
According to the company, its members can expect to see
annual returns starting at 6% to 11% that are secured by
commercial and investment real estate with a fixed maturity
date of one to three years. The investment minimum is set at
$25,000.
For borrowers, Blackhawk noted that it enables faster
closing times, a transparent lending process and quick and easy
qualification.
“We are in the process of developing strategic partnerships
that will fund loans with more velocity,” said Ping. “These new
partnerships will allow us to get a lot more deals done because
of their expertise, expand our database and one of the joint
ventures will provide equity crowdsource funding, which will
allow us to focus on the debt side.”
Blackhawk stated that it reviews each potential borrower
and property, and it only allows businesses and individuals to
borrow if they have successfully completed a vetting process.
This process is based on validating key up-to-date financial
information and qualifying the integrity of each loan request
posted on the site.
Blackhawk is raising funds to hire additional staff, online
and digital marketing and PR.
Deal Briefs are not recommendations to purchase, retain, or sell securities of the companies mentioned. Deal Briefs are intended to provide a diversified selection
of companies in order to illustrate market trends; however, not all Deal Briefs are announced/open deals from the reporting period covered in this newsletter.
Dealflow.com and its affiliates make no representation or warranty, express or implied, about the accuracy or completeness of the information in any Deal
Brief. Dealflow.com has no obligation to update any information contained in any Deal Brief. If you would like your deal to be considered for Deal Briefs, email
editor@dealflow.com.
© 2014 Dealflow.com™
5
Real_Estate/deal_briefs
Real Estate
Inner Ten Development
1124 Linden
Raising: $450,000
Sector: Residential Properties
Source: iFunding
Inner Ten Development is raising capital for a construction
loan to build a two-unit condo project in Austin, Texas. The
sponsor is making a $155,000 equity investment along with
the $450,000 being raised on the portal. Inner Ten has raised
capital with iFunding for two other ongoing projects on the
same street and has completed a number of other ones in the
same region.
The project will feature 3600 square feet of living space on
an 8712 square foot lot. Demand for real estate in the area is
strong, with many projects selling in as little as ten days. The
East Austin neighborhood is number seven on Forbes’ hippest
hipster neighborhoods in America list. Austin Home Solutions
is the project designer.
The construction costs are $450,000, with land and closing
costs accounting for the remaining $155,000. The one-year
loan is structured for a 10% annualized rate of interest and can
be extended for two 90-day intervals, but the sponsors expect
to complete the units in nine months. The projected return on
the investment is 7.5%. The investment is a promissory note
guaranteed by Inner Ten.
Mobile Home Park Fund V
MHP Funds LLC
Raising: $25,000,000
Sector: Mobile Home
Source: Realty Mogul
Realty Mogul and MHP Funds LLC are raising capital for
Mobile Home Park Fund V, a vehicle that will specialize in
buying and turning around under-valued and under-managed
mobile home parks at locations across the U.S. About 6% of
the U.S. population lives in mobile homes across the country,
and demand remains strong for the moveable dwellings.
Research from Realty Mogul indicates that 60 million
people have annual incomes under $20,000 – a figure that
leaves them with a $500 monthly rent budget according to
federal guidelines. Building new trailerparks faces problems
with zoning and planning, so existing parks are in demand.
Investors who own the actual homes can depreciate them faster
than traditional real property, and those who only own the
land and pads do not have to worry about maintenance costs.
Maintenance is the responsibility of the tenant who owns the
trailer.
The fund plans to acquire 20 to 40 mobile home parks
and hold them for five to 10 years. The fund is designed for
both cash flow and equity growth, and the fund projects 10%
preferred returns. Excess cash flow and appreciation will be split
between the fund and investors, and the fund projects a 16% to
18% IRR. This will be MHP’s eighth mobile home park fund.
Mobile Home Park Fund V currently has three transactions
underway that include a total of six parks. MHP uses several
means of finding new parks, including a database of potential
park candidates, foreclosures and recommendations from
investing seminar attendees. MHP’s existing park portfolio
comprises some 100 parks and 10,000 lots in 16 states.
Pyatt Broadmark Real Estate
Lending Fund I
Sector: Real Estate Lending
Source: Dealflow.com
Pyatt Broadmark Management, LLC, based in Seattle,
Wash., specializes in private, short-term commercial financing
throughout Washington, Oregon and Idaho with a focus on
construction, land acquisition, development, rehab, bridge to
conventional and commercial real estate purchase loans.
In partnership with Broadmark Capital LLC, the firm has
established the Pyatt Broadmark Real Estate Lending Fund
I (PBRELF I), which was created to satisfy an unmet need in
the U.S. credit market, according to the company. The Fund
provides short-term, unleveraged, first position deed of trust
loans with loan to values no greater than 65% issued against
real estate projects in the Pacific Northwest. The loans are
made to home builders, developers, real estate investors and
businesses looking to expand real property facilities.
“After four years of servicing this market, the demand for
PBRELF I loans still outstrips our ability to supply capital,”
said Broadmark Capital managing director Adam Fountain.
“We routinely see high quality lending opportunities from
mortgage brokers, real estate agents, banks and other such
intermediaries.”
The Fund raises capital through the issuance of membership
interests in a limited liability company. There is a $100,000
minimum investment with the current capacity to accept up to
$5 million per month.
As of July, 2014 the fund has $71 million in assets under
management and holds 88 active loans. An investor owns a pro
Deal Briefs are not recommendations to purchase, retain, or sell securities of the companies mentioned. Deal Briefs are intended to provide a diversified selection
of companies in order to illustrate market trends; however, not all Deal Briefs are announced/open deals from the reporting period covered in this newsletter.
Dealflow.com and its affiliates make no representation or warranty, express or implied, about the accuracy or completeness of the information in any Deal
Brief. Dealflow.com has no obligation to update any information contained in any Deal Brief. If you would like your deal to be considered for Deal Briefs, email
editor@dealflow.com.
© 2014 Dealflow.com™
6
Real_Estate/deal_briefs
Real Estate
rata share of each loan in the portfolio through an LLC.
Investors receive 20% of origination fee income and 80% of
interest income (less direct fund expenses, e.g. taxes and audit).
A monthly cash distribution is paid directly to the investor’s
bank account. There is a redemption option available after one
year, and then quarterly.
“The goal of the fund is to provide investors with a highyield debt investment while minimizing the risk of principal
loss and maintaining near-term liquidity,” Fountain said.
PBRELF I was launched in August, 2010 and as of July,
2014 has written 187 loans, 99 of which have been paid in
full. As of July, 2014, the Fund has delivered to investors
an annualized return since inception of 11.64%, assuming
reinvestment.
Saglo Development Corp.
Central Plaza Shopping Center,
St. Petersburg, Fla.
Raising: $3,200,000
Sector: Retail
Source: EarlyShares
Part of the capital for investment in a Florida retail center is
being raised on EarlyShares, where backers can commit up to
$250,000 of the total. Saglo Development Corp. acquired the
Central Plaza Shopping Center property for about $7.3 million
and is raising money for refinancing. The deal offers investors
the opportunity to capitalize on cash flow from a property that
is almost always completely rented out to store tenants with
positive track records when it comes to paying rent. The address
is 3201-3365 Central Avenue in St. Petersburg.
The property is located at a busy intersection along streets
leading variously to downtown St. Petersburg, the Gulf of
Mexico and two suburban counties. Most tenants are national
retailers, including Footlocker, Family Dollar and Rainbow
Kids. The opening of a Wal-Mart nearby in 2011 led to an influx
of customers to other stores in the area, which is surrounded by
a variety of densely populated neighborhoods.
Saglo projects a 13.4% IRR for Central Plaza, and equity
investors will receive an 8% preferred return distributed on a
quarterly basis. Saglo purchased the property at an LTV under
65% and has financing that is fixed at 3.75% for five years and
capped at 5.75% for the remaining five years of the loan.
Miami-based Saglo was founded in 1976 to specialize in
shopping center investment. The company owns and operates
800,000 square feet of centers and also provides management
and leasing services to another 230,000 square feet.
The Thompson Block
Raising: $1,740,000
Sector: Real Estate Management
& Development
Source: EquityHunt
Thompson Block Partners is currently raising an equity
round for the Thompson Block, located on the corner of
Depot Town in Ypsilanti, Mich., by selling 174 shares valued
at $10,000 per share. The investment company plans to use
the funds for the further development of the property, which
will feature about 14,000 square feet of commercial space, 16
luxury lofts and a 26 car surface parking lot.
“We bought this property and created the entity to raise
the necessary funding, which is our seventh project and our
biggest,” Thompson Block Partners president Stewart Beal
told Dealflow.com. “We started the raise in the beginning of
2013 and currently we have 25 shares left. We have also received
state grants for this project.”
The internal rate of return is estimated at 15% to 18% and
the targeted closing date for the deal on EquityHunt is set for
Sept. 1, 2014. The estimated cost of the entire project is about
$5 million.
“Investors will receive 45% immediately after construction
is complete through the historic tax credit,” said Beal. “Then a
quarterly return will follow after that. We will close the entire
raise Sept. 30.”
The pricing for the residential units will begin at $732 per
month for a 610 square-foot studio to $1,424 per month for
a 1,187 square-foot apartment with two bedrooms and two
baths. Parking can be reserved and will be available in the
parking lot at $75 per space.
Thompson Block, built in 1861, was once Civil War barracks.
The property is located within a short distance of restaurants,
shops, festivals, parks and Eastern Michigan University.
Deal Briefs are not recommendations to purchase, retain, or sell securities of the companies mentioned. Deal Briefs are intended to provide a diversified selection
of companies in order to illustrate market trends; however, not all Deal Briefs are announced/open deals from the reporting period covered in this newsletter.
Dealflow.com and its affiliates make no representation or warranty, express or implied, about the accuracy or completeness of the information in any Deal
Brief. Dealflow.com has no obligation to update any information contained in any Deal Brief. If you would like your deal to be considered for Deal Briefs, email
editor@dealflow.com.
© 2014 Dealflow.com™
7
Real_Estate/launched_deals
Real Estate
Launched Real Estate Deals - July 1 to July 31, 2014
In the most recent reporting period, we tracked 86 launched deals seeking to raise a total of $702,423,049. Of these deals nine were
advertised Rule 506(c) offerings totaling $68,290,000.
Issuer
1124 Linden Austin Texas
130 S. Front St., L.P.
220 N.Van Ness Hancock Park
307-311 Union Avenue LLC
8950 North Central Avenue, LLC
Agility Title, LLC
AKA United Nations
Raising
Source
Issuer
iFunding
Community Veterinary Partners
SEC
Dreammation EFX Studios
RealtyShares
Energy Commerce Center 1 LLC
$20,000,000
SEC
First Land Transfer, LLC
$310,000
SEC
Flathead Hospital Development
$75,000
SEC
Great Ajax Corp.
Prodigy Netwrk
Great Falls Apartment, LLC
$450,000
$6,401,540
$820,000
$9,000,000
Raising
Algodon Wines & Luxury Dev Gp
$30,000,000
SEC
GREF III REIT LLC
Alpha Real Estate Holdings I LCC
$10,000,000
Debt
Hamptons Luxury Waterfront Res
Alpha Real Estate Holdings I LCC
$10,000,000
SEC
Houston Multi-Family
$1,200,000
SEC
HUBBELL REALTY Co
American New Homes Holdings LLC
Apollo Storage
$10,710,088
Realty Mogul
Impact Investing San Antonio
Austin CreativeOffice/ATCO
$12,635,000
RealCrowd
Independence Retail West, LLLP
AZ Investment Property Experts
$3,000,000
SEC
BDR Bellevue IV LLC
$600,000
SEC
BDR Kirkland III LLC
$500,000
SEC
BDR Kirkland IV LLC
$600,000
SEC
$3,325,000
SEC
Biltmore Apartment Homes, Ltd.
Bizantu
$750,000
AngelList
BlackRock/Stowe Residences, LLC
$600,000
SEC
Blue Water Development
$2,047,740
EarlyShares
BSREP Marina Village REIT I LLC
$125,000
SEC
BSREP Riverside REIT LLC
$125,000
SEC
Capstone Real Estate Investments
$4,200,000
SEC
CCC Gallery Lofts LLC
$4,375,000
SEC
Central Plaza, Fl.
$3,200,000
EarlyShares
Charles Street Land, LLC
$1,400,000
SEC
$56,500
SEC
COMMUNITY BANK MORTGAGE
$2,000,000
$100,000
Source
SEC
Fundable
$1,600,000
SEC
$50,000
SEC
$6,412,800
SEC
$130,000,000
SEC
$3,500,000
SEC
$125,000
SEC
$1,000,000
Fundrise
$275,000
LinkedIn
$10,000,000
$1,000
$9,650,000
SEC
AngelList
SEC
Advertisement
Broadmark Capital would like to invite
you to their free webcast for accredited
investors on September 10th, 2014:
Pyatt Broadmark Real Estate Lending
Fund I (PBRELF I) has a four (4) year
history of annualized net returns in
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is to provide investors with a
high-yield debt investment while
minimizing the risk of principal loss
and maintaining near-term liquidity.
*Past performance is not indicative of future returns
broadmark.dealflow.com
All data is based on information gathered by Dealflow.com. Data is updated based on the availability of public disclosures and has been obtained from sources
deemed reliable, including online funding portals, social media, corporate communications, regulatory filings with the Securities and Exchange Commission and
certain third party sources. Dealflow.com does not guarantee the accuracy and completeness of this data and makes no representation or warranty, express or
implied about the accuracy or completeness of this data. Data includes private and public company issuers, including issuers filing for an indefinite amount of
securities to be sold. Sector classifications are based on the Global Industry Classification Standard (GICS) and do not take into account issuers addressing multiple
sectors.
© 2014 Dealflow.com™
8
Real_Estate/launched_deals
Real Estate
Issuer
Source
Issuer
$2,750,000
SEC
Rocky Creek Plantation Acquisitions
$40,000,000
SEC
LAMORIA CONDOMINIUMS LLC
$4,000,000
Leonard Oaks Apartments
$1,435,000
Kahala Apartments CC4R, LLC
KWB HOTEL PARTNERS, LLC
LSREF2 Razor REIT (Atlanta), Inc.
LYNK Capital, LLC
Marietta Georgia/Camelot/Signtr H
Medical Center IV at Monument
MHP Mobile Home Fund
Raising
$250,000
$25,000,000
$100,000
$2,000,000
$25,000,000
Raising
$16,168,050
SEC
RSF REIT V SP 2, L.L.C.
$250,000
SEC
SEC
RSF REIT VI PVSL 1, L.L.C.
$500,000
SEC
Loquidity
Santana Village Apartments, LLLP
$6,675,000
SEC
SEC
SFA COMMERCIAL LLC
$30,000,000
SEC
AngelList
SL Water's Edge Apartments, DST
$21,118,000
SEC
CrowdVested
South Campus Land Cnsortium One
$10,400,000
SEC
SEC
Spa Villas at Calitina
$450,000
GoundBreaker
Realty Mogul
Three Property Rehab in NorCal
$660,000
Patch of Land
$500,000
AngelList
Miami Arts District Mixed-Use Rep
$1,850,000
Fundrise
Tycoon Real Estate
Mission Oaks/Xebec Realty
$3,500,000
RealCrowd
University Lofts, L.L.C.
Mortgage Harmony Corp.
$2,000,000
AngelList
US Bank Building
$125,000
SEC
Washington Towers EB-5, LP
$66,000,000
$36,957,331
SEC
WatersViews Assited Living
$2,000,000
MSR GL/DR Mezz D LLC
National Net Lease Portfolio V DST
NB Duck Abbey, DST
Nelson Bros Duck Abbey Sdnt Hsng
Nelson Brothers Meadow View
Nelson Bros Sdnt Hsng & As Liv Hld
Oak Point Vero Properties, L.P.
Osage Place Townhomes, LLC
Our Home Transitional
$2,310,000
$500,000
Advertised Rule 506(c) Offerings
RealCrowd
Issuer
$50,000,000
SEC
Alpha Real Estate Holdings I LCC
$2,400,000
SEC
$800,000
$50,000
$18,300,000
$1,300,000
SEC
RealCrowd
SEC
Dealflow.com
Real Crowd
Crowdstreet
$4,408,000
Source
Raising
Source
$10,000,000
SEC
NB Duck Abbey, DST
$2,310,000
SEC
SEC
Nelson Brothers Meadow View
$4,408,000
SEC
AngelList
Nelson Bros Sdnt Hsng & As Liv Hld
$50,000,000
SEC
Patch of Land, Inc.
$550,000
SEC
Patch of Land, Inc.
$132,000
SEC
Patch of Land, Inc.
$140,000
SEC
Patch of Land, Inc.
$550,000
SEC
Patch of Land, Inc.
$132,000
SEC
Patch of Land, Inc.
$140,000
SEC
Place at Saddle Creek Apartments
$7,050,000
SEC
RSF REIT V SP 2, L.L.C.
$250,000
SEC
Provident Gp - Canton Cove Prprts
$3,450,000
SEC
RSF REIT VI PVSL 1, L.L.C.
$500,000
SEC
$600,000
SEC
Real Estate Buyers Listing Service
Rentah
$5,000,000
AngelList
Rental Owners Group, Inc.
$2,250,000
SEC
Rentscoper
Revesco (USA) Prprties of Sheridan
$25,000
$2,250,000
AngelList
SEC
All data is based on information gathered by Dealflow.com. Data is updated based on the availability of public disclosures and has been obtained from sources
deemed reliable, including online funding portals, social media, corporate communications, regulatory filings with the Securities and Exchange Commission and
certain third party sources. Dealflow.com does not guarantee the accuracy and completeness of this data and makes no representation or warranty, express or
implied about the accuracy or completeness of this data. Data includes private and public company issuers, including issuers filing for an indefinite amount of
securities to be sold. Sector classifications are based on the Global Industry Classification Standard (GICS) and do not take into account issuers addressing multiple
sectors.
© 2014 Dealflow.com™
9
Real_Estate/news
Real Estate
Continued from page 1
Patch of Land is a real estate portal currently serving only accredited investors but considering the retail
market. “Patch of Land operates a powerful data-driven,
e-commerce platform built on full transparency, ease,
speed and reliability of information and funding,” Patch
of Land CMO AdaPia d’Errico told Dealflow.com. “Our
marketplace is primarily single family residential, plus
multifamily and small commercial loans from 30 days to
12 months with annual yields to investors ranging from
10% to 14%.”
While Patch of Land currently only works with accredited investors, d’Errico said that the arrangement already
unlocks new opportunities for both investors and capital
seekers. But the portal is looking at various unaccredited
options according to d’Errico and general counsel Amy
Wan. “I think it’s safe to say that, in line with our motto
of ‘Building Wealth, Growing Communities,’ Patch of
Land sees great potential in democratizing investment
opportunity by opening real estate crowdfunding (or P2P
lending) to everyone–not just accredited investors,” Wan
said. “We eagerly await new regulatory mechanisms that
may allow us to do just that.”
Several unsettled regulatory issues leave it up in the air
as to what options might be available to further democratize online investing in general and for real estate in specific. Some Rule 506(c) proposals are still up unsettled,
but that offering can only be made to accredited investors
anyway. Title III crowdfunding regulations are also still
pending, but the title III scenario will limit the amount
investors can commit – and the amount companies can
seek.
Another option is the Regulation A+ offering proposed
last December – and still under consideration. A Reg A
offering in its current form allows companies to raise up
to $5 million with unaccredited or accredited investors,
but preparing the offering statement to file with the SEC
can be costly in both time and money. The Reg A+ offering would expand the deal amount to $50 million,
but these regulations have also bogged down after being
attacked by parties including state securities regulators
alarmed that the new offering eliminates state oversight
or preemption.
Some members of Congress share this concern and
recently wrote a letter to the SEC essentially pitting the
commission against Congress. “We are alarmed by the
commission’s action,” 20 members of Congress wrote.
“The commission has no authority to substitute its own
preference for the clear judgment of Congress regarding
© 2014 Dealflow.com™
preemption of state law – to do so is both unlawful and
likely unconstitutional.”
While the wrangling over Reg A+ continues, at least
one portal is using the existing Reg A to make investments
available to unaccredited investors: Sharestates, which
variously employs both Reg A and Reg D filings. Even
with its current limitations, Reg A allows general solicitation and non-accredited investors, all of which fits in with
Sharestates’ plan to democratize investing. “We’re trying
to sell a piece of New York City to the folks on Main
Street, instead of the folks on Wall Street,” Sharestates
principal Allen Shayanfekr told Dealflow.com.
Sharestates works mostly with cash flow deals that
start returning distributions more quickly than construction and development projects. Recently funded transactions range from a $30,000 condo in New York to a $3.6
million 24-unit building in Brooklyn. Minimum investments can be as low as $100.
Rich-Uncles.com is another portal intent on making
it possible for non-accredited investors to get involved in
commercial real estate. Rich-Uncles.com principal Harold Hofer told Dealflow.com that the company specializes in making commercial equity investing available to
non-accredited investors. Hofer said the platform does
not charge commissions, while a broker dealer or financial planner would typically levy a 10% fee.
The company offers shares in a private REIT under an
exemption from the California Department of Business
Oversight. Because of its reliance on the state exemption,
Rich-Uncles.com must market to investors who are California residents or non-U.S. residents. “The SEC’s Rule
147 allows for the state exemption in certain instances.)
The state exemption also establishes financial requirements for investors, who must have a family income of
$75,000 or more or a net worth of $250,000 – well below
the requirements for accredited investors.
Shares in a private REIT are valued on the properties it
holds, so the share prices are not vulnerable to the market
volatility that can batter publicly traded REITs. (Private
REIT shareholders have access to a secondary market in
the form of REITbid.)
Rich-Uncles.com’s REIT, which specializes in triple
net lease opportunities, just announced the $3.78 million
acquisition of a Chase Bank building in Antioch, Calif.,
and it also owns 22 Del Taco restaurants in the state. The
vehicle ultimately expects to raise a total of $25 million
for acquisitions.
10