Prime North Carolina office building fully funded in REVA 1031 Exchange eligible investment
A novel crowdfunding investment vehicle from Real Estate Value Advisors (REVA) in a premier Raleigh, N.C., office building has been fully funded, with investors pouring in $10,212,500 to the 1031 Exchange offering.
REVA, based in Richmond, Va., partnered with EarlyShares, a Florida-based innovator in the real estate crowdfunding industry, to launch and complete the 1031 Exchange eligible investment offering in the Colonnade II. The offering was one of the largest of its kind at the time it was opened to investors.
“Clearly this property is attractive to investors who should see the strong, consistent cash flow
that they’ve come to expect with REVA properties,” said REVA Managing Director Stevens M. Sadler. “Colonnade II is fully leased through 2023 and, coupled with REVA’s track record of results, it proved to be an enticing investment for savvy investors.”
The Colonnade II is located in the strategic Six Forks area of Raleigh that’s home to the global headquarters of Salix Pharmaceuticals. The five-story building encompasses 126,926 square feet and was completed in 2008, with Salix Pharmaceuticals occupying the building in 2011.
The property is known for its sophisticated elegance and proximity to executive housing and shopping amenities. It was acquired by REVA in January 2015 for a purchase price of $27,450,000.
The projected REVA internal rate of return is estimated at 9.86 percent to 16.40 percent, with an estimated cash-on-cash return of 7.50 percent to 8.50 percent. The minimum investment for accredited investors who are registered users of EarlyShares was $53,750.
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.
REVA has completed more than $200 million in Reg D syndications of commercial office buildings. The firm serves nearly 400 investors while stewarding a portfolio of nearly $1 billion in assets stretching from the upper Mid-Atlantic region to the Florida coast and west to Georgia and Texas.
REVA brings expert management and cutting-edge analytics to bring efficiency and profitability to the asset management industry. A track record of significant increases in net effective rents, net operating income and property values is a hallmark of REVA’s operations.
“Whether it’s stabilizing assets or quick turnarounds — our experts are dispatched to properties for thorough inspections, analysis and recommendations within 48 hours of assuming management —our experienced REVA management team is creative, committed and undaunted in maximizing value for owners and investors,” Sadler said.
Posted on April 6th, 2016