By Joshua Burd, January 5, 2017
A real estate crowdfunding platform has made its first foray into New Jersey with an apartment building in East Orange, where an owner is seeking to recapitalize the property and tap into the demand for rental housing just outside New York City.
The Manhattan-based company, EquityMultiple, has been soliciting investors for a 25-unit building at 38 South Walnut St. in the Essex County city. The firm is working on behalf of the landlord, One Wall Partners, offering $500,000 of preferred equity for what would be at least a three-year investment.
The offering is the latest sign of the spread of crowdfunding in commercial real estate.
“The reasons why people come to us are definitely varied,” said Charles Clinton, co-founder and CEO of EquityMultiple. “In the case of a group like One Wall, where they have a rock solid track record, they’re now starting to scale their business to the point that they’re not just raising money from family and friends … We’re a group that it’s natural to transition to, and we’re a way of expanding that world of family and friends investors to a much bigger group.”
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