EarlyShares crowdfunding platform offers first of its kind investment in North Carolina
New JOBS Act regulations open doors for investors in North Carolina, elsewhere
Raleigh, N.C. — A Raleigh office building that is 100 percent leased to Salix Pharmaceuticals is the first property in the state to be offered as an equity investment directly to investors through the innovative EarlyShares crowdfunding platform in the largest crowdfunded deal of its kind in the U.S.
Real Estate Value Advisors (REVA), based in Richmond, Va., and EarlyShares, a Florida-based industry leader in real estate crowdfunding, are launching a 1031 Exchange eligible investment offering in the Colonnade II, a fully-leased, Class A office building in the desirable Six Forks area of Raleigh, N.C.
According to the “massolution(cq) 2015 Crowdfunding for Real Estate” report, the REVA Raleigh Colonnade DST is the largest crowdfunded real estate deal in U.S. history. Massolution is a research, advisory and implementation firm that specializes in crowdsourcing solutions for private, public and social enterprises.
REVA, the owner of the Colonnade II office building, is capitalizing on their successful track record of more than $200 million in office property syndications and leveraging the expertise of EarlyShares, which gives accredited investors direct access to commercial real estate investments via its online crowdfunding platform.
The Colonnade II is a brand new 126,926-square-foot building that was leased to Salix Pharmaceuticals in 2011. The property, known for its sophisticated elegance and proximity to executive housing and shopping, offers a premier location and excellent amenities making it a highly desirable asset to tenants and investors alike.
A 1031 Exchange is a tax-deferring vehicle that’s considered a “like-kind replacement” property investment. The benefits to investors of a 1031 Exchange include deferring capital gains taxes by swapping certain real estate investments with each other.
The “REVA Raleigh Colonnade, DST” offering through EarlyShares is structured to let investors put 100 percent of their investment to work for them. Rather than losing as much as 30 percent of the investment income to taxes through capital gains, with the 1031 Exchange investors can let the capital continue to mature and defer the taxes.
EarlyShares connects individual investors to vetted, return-driven private investment opportunities through a trusted, secure platform. The process entails issuers applying on EarlyShares to raise debt or equity capital for real estate projects or investment funds. EarlyShares screens and vets all potential issuers and has a third-party partner conduct a thorough regulatory compliance and due diligence check.
“REVA has five decades of transaction experience and a determined emphasis on frugal, effective, efficient asset management,” said Joanna Schwartz, CEO and Co-Founder of EarlyShares. “Their firm is exactly the type of sponsor we like to introduce to our investor community, and we’re happy to be helping them capitalize on new regulations to enjoy a seamless, efficient capital raise on our platform.”
REVA, with a stellar track record of performing well in good markets and bad and more than $200 million in office transactions, has structured the Colonnade DST investment offering to qualify as a 1031 Exchange, a tax-deferred exchange considered a “like-kind replacement” property investment. REVA Managing Director Steve Sadler said the current lease has a strong upside, with in-place rates 20 percent below market.
“We’re confident that this property will deliver the strong cash flow that investors have come to expect from REVA in both rising markets and falling ones,” Sadler said.
REVA is seeking to raise $10.2 million through EasyShares and projects immediate cash flow to investors of 7.5 percent and riding over time. “In an environment where US Treasuries yield about 2.5 percent, this is a hard asset you can touch that delivers current cash returns three times that,” Sadler said when discussing financial repression by the Fed. Accredited investors who are registered users of EarlyShares can invest in the Colonnade II with a minimum investment of $53,750.
With a portfolio stretching from the Mid-Atlantic to the Florida coast and west to Georgia and Texas, REVA serves nearly 400 investors and specializes in operating properties to maximize investor returns and asset value.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon REVA’s (the “Company”) present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements.