Tag Archives: Adam Kaufman

ArborCrowd Offers Investors Estimated 13%-17% IRR with 4-7 Year Hold Period on $69.7 Million Crowdfunding Real Estate Investment Opportunity

16 Jun

The business plan is to cultivate tremendous value upon sale of this property, while maintaining strong annual returns for new investors that want to invest alongside seasoned, experienced ArborCrowd institutional investors

By Robert Hoskins

Miami, Florida – ArborCrowd, one of the top commercial real estate equity crowdfunding sites, announced today a new real estate investment opportunity – known as the Lago Paradiso. A profitable and stabilized multifamily complex, this property is located in Miami, Fla., one of the most international and desirable marketplaces to live in the United States.

A new commercial real estate investment offering, Lago Paradiso is a value-add, multifamily lakefront apartment complex located in Miami

A new commercial real estate investment offering, Lago Paradiso is a value-add, multifamily lakefront apartment complex located in Miami

ArborCrowd investors have the opportunity to own a piece of a $4 million equity stake in Lago Paradiso. The Property has a targeted 13 percent to 17 percent Internal Rate of Return (IRR) and a projected hold period of four to seven years.

The goal of the business plan is to cultivate tremendous value upon sale of the Property, while maintaining strong annual returns for investors. This will be executed through a value-add repositioning, experienced property management and operational efficiency.

“ArborCrowd is the engine that brings successful real estate investments with the industry’s best sponsors and crowd investors,” said Ivan Kaufman, Co-founder and CEO, ArborCrowd. “The long-standing relationships that ArborCrowd has developed with institutional real estate investors has enabled us to attract a network of successful leaders who know how to source, manage and execute some of the best multifamily deals in the country.”

ArborCrowd’s investment model is unlike other crowdfunding platforms – the quality of the real estate is at the core of the business. Other models pool investors’ money into funds that are blindly allocated to different assets. ArborCrowd created a better way to invest by providing investors the transparency and knowledge to choose what deals their money goes into.

“Looking at just the returns of a property are not enough. ArborCrowd will only post what we believe is a strong investment offering. In order to be confident in the deal, we hone in on the depth and breadth of the sponsor’s experience,” said Adam Kaufman, Co-founder and Managing Director, ArborCrowd. “This commitment to only presenting high caliber deals is proving to be successful as all our previous deals funded quickly – with ArborCrowd’s last equity raise oversubscribed in just three business days.”

Lago Paradiso Deal Highlights
The Property was acquired in May 2017 for $69.7 million. Lago Paradiso is a lakefront apartment complex that consists of 27 buildings with 424 one and two bedroom units – currently 97 percent occupied.

Lago Paradiso, a new commercial real estate investment offering, consists of 27 buildings with 424 one and two bedroom units

Lago Paradiso, a new commercial real estate investment offering, consists of 27 buildings with 424 one and two bedroom units

The business plan is to create value by increasing rents through renovations, and by implementing new property management and operational expertise. Robbins Electra and its affiliates own and operate more than 22,000 units. This extensive management experience, particularly in Florida, means the Sponsor is well equipped to manage rent escalations while leveraging proprietary systems to improve operational costs.

Key benefits for ArborCrowd investors, include:

  • Basis: As an off-market transaction, this property was acquired at a favorable purchase price.
  • Proven Plan: Prior to the acquisition, 14 units were renovated and re-leased at higher rents. The current plan is to significantly expand this proven approach and accelerate renovations to generate even more cash flow and increase overall property value.
  • Cash-on-Cash: The projected cash-on-cash return remains strong during the renovation period, approaching 10 percent in the second year. Once renovations are complete, the new units are expected to enable an even stronger cash-on-cash return throughout the holding period.
  • Experienced Management: The deal sponsor is an affiliate of Robbins Electra, one of the fastest growing operators in the country. The key principal of the Property, Joseph Lubeck, is CEO and Co-Manager of Robbins Electra and has executed similar business plans with aggregate deal capitalization in excess of $3 billion since 1991.

Lago Paradiso is located 20 miles southwest of Miami’s Central Business District and South Beach. This helps to strengthen the demand for the Property.

Key stats of the Miami/South Beach area:

  • Miami and South Florida is base to more than 1,100 multinational corporations, including American Airlines, Cisco, Exxon, FedEx, Microsoft, Sony, Visa and Wal-Mart.
  • The metro area has high demand as occupancy rates are 97 percent with rents increasing in the past 5 years.
  • The Property’s rent price point appeals to the middle and working class – one of the most stable tenant bases in multifamily. This base also achieves the highest rate of lease renewals. Overall, Miami ranked in the top 10 nationally for 2016 renewal rates.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-eight years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(512) 627-6622
@Crowdfunding_PR


Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins runs one of the industry’s foremost crowdfunding PR, social media and marketing agencies that has amassed a huge social media following and is dedicated to supporting a wide variety of donation, rewards and equity crowdfunding campaigns.
Advertisement

ArborCrowd Opens New $22.4 Million Commercial Real Estate Deal to Qualified Equity Crowdfunding Investors

21 Feb

ArborCrowd Enables Individual Investors to Co-Invest with Real Estate Sponsors on High Caliber Investment Properties

By Robert Hoskins

Huntsville, Alabama – ArborCrowd, an online commercial real estate company, announced a new real estate investment opportunity that is open to accredited investors. Known as the “Southern States Multifamily Portfolio,” this latest offering features three multifamily properties in Alabama and Mississippi.

ArborCrowd Opens New $22.4 Million Commercial Real Estate Deal to Qualified Equity Crowdfunding Investors

ArborCrowd Opens New $22.4 Million Commercial Real Estate Deal to Qualified Equity Investors

ArborCrowd has provided the public with exclusive multifamily investment properties in New York City. The company is now expanding its reach into new metro areas across the country in order to provide diversified investment opportunities to the public.

Unlike many other crowdfunding marketplaces, ArborCrowd provides greater transparency about each investment opportunity. Investors have access to documents and deal specifics — including market reports, property details, financial projections and business plan timelines — necessary to make an informed decision. The entire investment process and access to all the resources are available online.

“ArborCrowd is a real estate company first and foremost, and was built because of our institutional experience — this means we know the right deal-makers and we know how to source the best investment properties,” said Ivan Kaufman, Co-founder and CEO, ArborCrowd. “ArborCrowd breaks down the barriers to real estate investing. We do this by giving people the opportunity to co-invest with sponsors who have a significant amount of equity in the deal.”

Southern States Multifamily Portfolio Highlights
The $24.4 million Southern States Multifamily Portfolio was acquired in November 2016 by Varden Capital Properties, LLC (“Sponsor” or “VCP”) as a value-add repositioning. ArborCrowd investors have the opportunity to own a piece of a $2 million equity stake in the Portfolio with a targeted 17 percent to 20 percent Internal Rate of Return (IRR) and a targeted investment hold period of two to three years.

“ArborCrowd has established a unique investment model that has already generated cash distributions for our investors,” said Adam Kaufman, Co-founder and Managing Director, ArborCrowd. “It starts with selecting the right sponsor, who has the savvy insights into properties that can yield attractive returns. The Southern States Portfolio fits this sweet spot and may attract investors who want a shorter investment period than a typical direct real estate investment.”

VCP has extensive experience in commercial real estate with a focus on multifamily acquisitions in the southern and southeastern United States. The Sponsor currently owns 40 properties, has sold more than 42 properties, and has acquired 82 apartment assets valued at approximately $1 billion.

The Southern States Portfolio consists of 607 rental units across three properties located in Huntsville, AL and Robinsonville, MS. The properties in the Portfolio were acquired concurrently by the Sponsor. Combining these assets into a single portfolio may produce several key benefits for ArborCrowd Investors:

  • Market Diversity: Investing in multiple markets balances varying economic drivers for each property and reduces potential risk.
  • Low Cost Basis: By acquiring the properties together at an attractive cost basis, VCP is able to be competitive on rental rates while making the necessary improvements to increase occupancy and realize significant profit through the eventual sale of the Portfolio.
  • Short Hold Period: A simple business plan provides for a short projected hold period. Early cash distributions for investors are expected because of the potential to quickly reposition multiple assets.

Another key factor in successful commercial real estate investment is understanding the rental demand and opportunity.

Huntsville is the largest city within northern Alabama’s metro area – an economy that outperforms Alabama as a whole, according the Nielson Company. From 2005 to 2015, employment in the metro area rose by 21,000 jobs — a 10.4 percent increase. The average asking rent in the Huntsville metro area reached $695 per unit in 2016, a 10 percent increase from 2012, according to commercial real estate research firm Reis.

Robinsonville is a short 30-minute drive from the diversified economy of Memphis, TN, making it an attractive rental opportunity. Legalization of dockside gaming in 1990 brought dramatic economic change for Robinsonville. The city’s Tunica casinos and resorts employ about 5,500 people and generated revenue that exceeded $649 million in 2015. From 2000 to 2016, population within five miles of the property increased to nearly 63 percent and is attributed to industrial and residential development.

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-five years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(512) 627-6622
@Crowdfunding_PR


Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.
%d bloggers like this: