SAN FRANCISCO — RealtyShares, a leading online marketplace for real estate crowdfunding, has financed a $500,000 preferred equity investment opportunity through its network of investors nationwide to fund the acquisition and rehabilitation of a 22-unit multi-family property in the San Francisco Bay Area.
The project is sponsored by Tesseract Capital Group (TCG), a San Francisco-based real estate private equity firm currently holding ownership interests in more than 1,500 multi-family units nationwide. TCG is a repeat sponsor on the RealtyShares platform, having successfully funded other projects including a neighboring property.
Located in Hayward, Calif., Greenleaf Apartments is close to accessible transportation throughout the San Francisco-Oakland-Fremont metropolitan area. The apartments are currently leased below market rate, with significant potential for near-term gains. TCG will do interior and exterior renovations on the property and will manage rentals during the term of ownership.
“TCG has now partnered with RealtyShares to fund its last two real estate projects and we firmly believe that real estate crowdfunding has tremendous upside as a capital source,” said Benjamin Jiang, Managing Partner at TCG. “Diversified capital is a critical component to any successful private equity firm, and RealtyShares has proven capable of not only providing reliable funding, but also serving as an organic marketing tool for our firm. We’ve been able to expand our reach to investors all around the nation through a very simple process, with ample assistance from the RealtyShares team at every step.”
As the second property acquired by TCG in Hayward, this deal offers RealtyShares investors a chance to work with a development partner with first-hand experience in the area.
“This is a unique opportunity for our investors to access an attractive preferred equity position on a completely off-market acquisition,” said Bryan Schultz, Vice President of Commercial Equity Investments at RealtyShares. “The location is ideal for Bay Area commuters, with access to BART, a key transportation line within walking distance. TCG is well-equipped to reposition this property for significant potential near-term gains with a very reasonable loan-to-cost ratio.”
To date, the RealtyShares network of investors have funded $200 million across more than 400 investment opportunities on the platform, funding residential and commercial projects in 31 states.
RealtyShares is transforming the real estate investment landscape by connecting borrowers and sponsors to debt and equity capital from accredited and institutional investors, across an array of financing products. Private investments are highly illiquid and risky and are not suitable for all investors. Through the RealtyShares website, these investors can browse investment opportunities, perform due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing. RealtyShares offers equity securities through North Capital Private Securities Corporation, member FINRA/SIPC. For more information on how to become a real estate investor or to seek capital through the RealtyShares marketplace, please visit www.realtyshares.com.