Industry News Posts

DEAL CLOSING ALERT

We’re excited to announce the closing of our $3.125 million Marriott Deal.

Our largest real estate investment opportunity from RPS Hotel Holdings, LLC, featuring the recapitalization and renovation of a 90-room Courtyard Marriott hotel property in Lynchburg, VA, has closed as of June 13, 2016. The sponsor will launch another deal of similar asset quality and economics in the next few months, investors are encouraged to visit EarlyShares to sign up for updates on this and other deals. Read the Press Release 

EarlyShares EarlyFive from May 13, 2016

If you’re a basketball fan, there’s no doubt you’re feeling the exhilaration as the NBA conference semi-finals near their last few games. But while you may be able to bet on who’s going to head into the finals, nobody can predict with any certainty what will happen next in the stock market.

That being said, I invite you to take a moment to learn more about our latest offerings and the viability of real estate crowdfunding. We have plenty of resources on our site that can help you familiarize yourself with investing in Commercial Real Estate.

Millennials Making Permanent Changes to Commercial Real EstateMay 5, 2016
Millennials Making Permanent Changes to Commercial Real Estate
By Brian J. Rogal, Globestreet.com

The millennial’s preference for walkable neighborhoods that are close to work, transportation, dining and entertainment has influenced real estate and will continue to impact the industry indefinitely.

Tech, Healthcare Tenants Driving Growth in U.S. Office SectorMay 6, 2016
Tech, Healthcare Tenants Driving Growth in U.S. Office Sector
By Michael Gerrity, World Property Journal

The newest report from CBRE Group shows several trends when it comes to the U.S. office sector, including the desire among tenants for a live, work, play environment. Tech companies continue to push growth across the country, especially in vibrant downtown and suburban areas.

The Top Towns for real estate investorsMay 9, 2016
The Top Towns for real estate investors
By Diana Olick, CNBC

The low supply of affordable single-family homes continues to drive millennials into renting- which is good news for investors in various markets. But what may be surprising is which cities are showing the highest jump in rental rates.

How to attract millennials to commercial real estateMay 9, 2016
How to attract millennials to commercial real estate
By Diane Danielson, Commercial Property Executive

A candid talk about why there’s a shortage of millennials in the CRE industry, this video offers insight into why millennials aren’t pursing careers in CRE and strategies organizations can use to attract them.

A Secret Central Park Sanctuary Reopens to the Public After 90 YearsMay 10, 2016
A Secret Central Park Sanctuary Reopens to the Public After 90 Years
By Tanay Warerkar, Curbed.com

There’s a tranquil four-acre section of Central Park that is finally open to the public after years of restoration efforts by the park’s Conservancy organization. While many folks don’t even know this tiny oasis exists, the addition of new pathways and a beautiful gate have increased awareness.

5 Tips Tips to get the most cash out of your small apartment propertyBONUS: May 10, 2016
5 Tips Tips to get the most cash out of your small apartment property
Freddie Mac, NREIonline

Multifamily market growth continues, in fact, 2015 was the strongest year yet for the rental market since the recession. Owners of multifamily properties can make the most out of their investment by following these tips.

EB-5: How Online Tools Can Streamline Your Next Foreign-Investor Fundraise

Despite many shifts in U.S. immigration policy over the last decade and a half, one permanent residency program – the EB-5 Immigrant Investor Program – has thrived. Since its inception in 1990, EB-5 has enabled many thousands of foreign investors to support the U.S. economy and plug millions of dollars into U.S. commercial real estate developments and other projects.

That’s not to say that acquiring those dollars is easy for real estate sponsors. Like so many government programs, EB-5 is burdened with complicated regulations. And even in 2016, the investing and fundraising practices behind EB-5 remain mired in inefficient, paper-based processes. Thanks to new technology, however, utilizing EB-5 is finally getting simpler (for both foreign investors and the developers of the projects they support).

For background, the EB-5 program is designed to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under the EB-5 guidelines, Non-U.S. investors who invest in real estate and certain other “commercial enterprises,” or who support other efforts that create U.S. jobs, become eligible to apply for permanent residency. (More information on EB-5 is available here.)

EB-5 has been popular for years, but has grown especially valuable to developers and other real estate sponsors of late as foreign investors’ interest in U.S. real estate skyrocketed once the market recovered from the Great Recession. The number of applicants vying for the government’s annual allotment of 10,667 visas has doubled nearly every year since 2009, and 2015 reportedly marked the first year that the maximum investor quota was hit.

Yet the exponential growth in interest in the program, and the resulting increase in EB-5 eligible investment opportunities, hasn’t made the EB-5 experience any easier for stakeholders on the capital-acquisition side.

U.S.-based real estate firms (and other businesses that create jobs) love EB-5, because the program can help them fill a variety of funding gaps. EB-5-driven investments can serve as mezzanine financing, augment bank-lended capital, or provide equity for a variety of projects  – be they new construction, value-add redevelopments, or other initiatives. And while EB-5 investors are just as eager to earn returns as any other kinds of real estate investors, most are exclusively interested in safe, hands-off, passive opportunities – meaning they’re rarely seeking controlling interest or sky-high returns in exchange for their large (typically $500,000 or greater) contributions.

What real estate operators don’t love about EB-5, however, is the lack of infrastructure. The program itself has few specifics surrounding fundraising, but since most developers and sponsors prefer to conduct EB-5 raises privately – and work with outside partners to source wealthy investors from outside the country – the benefits of online capital raising through crowdfunding, which can streamline the commercial real estate capital formation process, have been largely unavailable to them.

But that’s beginning to change. Some real estate crowdfunding platforms, including EarlyShares, enable sponsors to utilize their deal management technology for private capital raises (in compliance with the 506(b) private placement guidelines) through “online EB-5” offerings.

“Online EB-5” is essentially crowdfunding without the crowd: invitation-only functionality enables developers and owner-operators to make their raises visible and accessible only to the investors they share the deal with. Armed with better deal management functionality, sponsors can more easily track investing activity and communicate with investors, and can make their investment details and documents accessible to investors through a secure online portal. (More information on EarlyShares’ EB-5 functionality is available here.)

Equipped with more simplified EB-5 syndication process, more developers may explore EB-5 for smaller projects in the $2-$10 million range in 2016. Given EB-5’s growing popularity, now is a smart time for EB-5-focused developers to leverage new tools – and they may want to act fast: The competition for each sponsor’s share of that 10,667 investor quota could be very strong in the year ahead.

The EarlyFive from February 26, 2016

Lots happening this week! The continued drop in oil prices has all of us smiling at the gas pumps-New Jersey has the lowest gas price in the country at $1.35/gallon. Even though we are winning at the pumps, investors in the stock market are not so happy. On Tuesday this week, the S&P 500 hit session lows causing concern among many stock investors.  Luckily we’re all about commercial real estate investing. I’ve included some interesting reads this week and remember to check out our current offerings for great opportunities to diversify.

Reverse 1031February 22, 2016
Everything You need to Know About the ‘Reverse 1031’ Tax Workaround
Martin Drake, Bisnow

For real estate investors dealing with the tight timeline of the conventional 1031 Tax, this article offers insight into how to get around the normal deadline.

The EarlyFive from February 26, 2016February 23, 2016
Major Government Real Estate Agency Budgets $1.5B for Commercial Real Estate Investments
By Martin Drake, Bisnow

Commercial real estate has enormous potential and appeal, so much so that the federal government has included $1.5B for several commercial investments in their proposed 2017 budget.

Oil Still Has a C hokehold on StocksFebruary, 23, 2016
Oil Still Has a Chokehold on Stocks
Heather Long, CNN Money.com

Oil and the S&P move together, at least most of the time. A cause for concern among stock market investors, oil prices dipped 5% on Tuesday, February 23, which is causing an acceleration in stock losses.

Commercial Real Estate Opportunities in the Emerging Cannabis IndustryFebruary 22,2016
Commercial Real Estate Opportunities in the Emerging Cannabis Industry
By Anita Sabine, Esq., Commercial Property Executive

A new niche has arrived on the commercial real estate scene and that’s cannabis real estate. According to The ArcView Group, a cannabis industry investment and research firm, the current supply of cannabis-friendly real estate cannot keep up with the demand.

Commercial Real Estate Investing With Your Self-Directed IRAFebruary 23, 2016
Commercial Real Estate Investing With Your Self-Directed IRA
By Michael Howe, Pensco.com

Everyone’s in agreement that the stock market’s volatility is cause for concern—and now retirement investors are turning to real estate investing as a sound diversification alternative.

The EarlyFive from Friday, February 12, 2016

The EarlyFive from Friday, February 12, 2016

Did you enjoy the Super Bowl last weekend? While an estimated 111 million people watched, statistically it fell short of viewership as compared to years past. And speaking of falling short, the stock market is still down 10 percent.

Thankfully, the commercial real estate markets are still going strong, including positive predictions for 2016 and the continuing trend of foreign investors putting their money put into safer US commercial real estate markets.

Remember, when you’re ready for some diversification, check out our offerings and the many resources available on our site. There’s never been a better time to invest in commercial real estate.

See below for our latest EarlyShares news:

Five Estate Planning Secrets of Successful Real Estate InvestorsFebruary 9, 2016
Five Estate Planning Secrets of Successful Real Estate Investors
By Zoe Lawford, NREIonline

As tax season looms, it’s as important as ever to plan ahead—this article offers tips on how successful real estate investors use estate planning to optimize capital gains.

5 Reasons Investors Are Likely to Bet on Real Estate in 2016February 7, 2016
5 Reasons Investors Are Likely to Bet on Real Estate in 2016
By Than Merrill, Thestreet.com

In a recent report by Collier’s International, real estate markets will continue to be the investment of choice for investors in 2016.

3 Reasons Millennials Are (Surprisingly) Sold on Real Estate InvestingFebruary 3, 2016
3 Reasons Millennials Are (Surprisingly) Sold on Real Estate Investing
EarlyShares blog

A generation that has traditionally demonstrated their preference for renting, it appears that Millennials are now showing an interest in real estate investing—specifically in single-family rental properties.

10 Women Developers Who Are Disrupting Commercial Real EstateFebruary 3, 2016
10 Women Developers Who Are Disrupting Commercial Real Estate
By Lorenzo Ligato, Bisnow

Traditionally a male dominated industry, Commercial Real Estate Development has seen the rise of women and these 10 heavy hitters are being credited with changing the face of the industry.

Inside the Multimillion-Dollar Mansions of NFL QuarterbacksFeb 6, 2016
Inside the Multimillion-Dollar Mansions of NFL Quarterbacks
By Kristin Tablang, Forbes.com

Peyton Manning and his team scored big in the Super Bowl and the famous NFL quarterback also scores high in his taste in real estate. Here’s an insider look at his $4.575 million, 16,464 square-foot mansion.

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