Investor contributions are returned ahead of schedule; they still participate in ongoing profits.
RealtyMogul.com, the online marketplace for real estate investing connecting accredited and institutional investors to real estate investment opportunities, announced that an offering involving a Class B retail center in San Antonio, TX had performed better than expected, and that its investors were recently repaid 100% of their initial investment – together with accrued preferred returns – after only nine months of being involved with the project. Those investors will continue to participate in the excess distributable cash flow of the property and any appreciation of the property when it is eventually sold. They will receive continuing returns on an investment for which their principal has been 100% fully repaid.
“We believe that this is the first ‘full circle’ deal that’s occurred in the real estate crowdfunding industry,” said Jilliene Helman, CEO of Realty Mogul. “Our investors knew when they bought in that the primary sponsor of this opportunity, RTI Capital, LLC, had already made great strides in leasing up the property from the time that it had originally been acquired. Everything paid off in spades when, based on the significantly greater in-place cash flow that the sponsors worked to achieve, they were able to re-finance the property for a significantly higher valuation. This, in turn, permitted the early repayment of investor contributions.”
“It was a pleasure working with RealtyMogul.com when we required additional funding for this retail center,” said Brian Shniderson, Principal of RTI Capital. “Through this innovative new platform, we were able to make improvements to the asset and generate good returns for RealtyMogul.com investors.”
The 135,000 square foot retail center was built in 1984 and is located along the NW Loop 410 Expressway in infill San Antonio. Acquired in 2011 during the recession, the property was challenged due to higher vacancy and lack of funds for repositioning by the prior owner. The sponsors spent much needed capital improvement dollars on upgrading the property in order to attract credit tenants and to secure leases bringing the occupancy rate up to 86% at the time of RealtyMogul.com’s investment.
“We’re of course quite happy that our investors received such strong investment results so quickly,” said Ms. Helman. “We had originally anticipated that the sponsors might be able to refinance the property in about three years. For our investors to receive a full repayment of their capital contributions – along with the preferred returns that had accrued in the interim – in such a short time -- a mere nine months -- is nothing short of astonishing.”
RTI Capital is a long established real estate investment and management firm that specializes in acquiring undervalued and opportunistic commercial real estate nationwide. RTI’s portfolio consists primarily of apartment complexes, retail properties, office buildings, and self-storage facilities. RTI is well known for its operating/repositioning expertise in these product types and owns properties in a number of states.
Past performance is not indicative of future results.
RealtyMogul.com is an online marketplace for real estate investing, connecting borrowers and sponsors to capital from accredited and institutional investors. RealtyMogul.com gives investors tools to browse investments, do due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing.
RealtyMogul.com partners with private real estate companies and investment-purpose borrowers to provide these companies with access to a broader capital pool, as well as tools for investor communications and distributions. As a result, the platform functions as a bridge between investors and real estate companies looking for funding. Realty Mogul offers equity securities through North Capital Private Securities Corp., member FINRA/SIPC.
For more information on how to become a real estate investor or to seek capital through the Realty Mogul marketplace, please visit www.RealtyMogul.com.