If you want to get in on the ground floor of this new industry, be sure to check out my new Amazon ebook, Real Estate Crowdfunding Explained. All my readers have been loving it, and I’m sure you will too!
Real estate crowdfunding is growing at a super fast rate! With new real estate crowdfunding platforms launching and larger investors participating, it seems as though that growth can only continue in 2015 and beyond.
Last year was a great year for real estate crowdfunding because platforms hosted some of the largest real estate projects yet, and started to break into the non-commercial markets more. Looking back on that success, here is a list of some of the top real estate crowdfunding projects in 2014:
1. 17 John Street – New York
Platform: Prodigy Network
Amount Raised: $85.3M ($25M crowdfunded)
Closed: September 2014
The initial crowdfunding campaign for 17 John Street helped raise funds for the building’s purchase in August. The building, which is only one block away from the World Trade Center, is now being converted into an extended stay hotel. Prodigy Network is currently looking to raise another $70 million to add a glass addition to the building.
2. Cumberland Metro – Illinois
Platform: Realty Mogul
Amount Raised: $18.5M
Closed: November 2014
This campaign raised money for a large office park acquisition by Brennan Investment Group. The complex is made up of 12 single story-buildings near the Chicago O’Hare International Airport. Brennan Group is now in charge of implementing property management, a leasing program, and making improvements to the property.
3. 90-94 Fulton Street – New York
Platform: iFunding
Amount Raised: $250M ($8M crowdfunded)
Closed: January 2014
Mavrix Group will be the developer for the new condo towers going up at 90-94 Fulton Street. This project is notable because it is not only iFunding’s largest project to date, but also their first in New York. The tower is expected to be as large as 250,000 square feet and approximately 75 stories.
4. Parc Bordeaux Apartments – Indiana
Platform: Realty Mogul
Amount Raised: $8.7M
Closed: December 2014
Parc Bordeaux Apartments is a multi-family property that raised funds in exchange for equity on Realty Mogul. Minimum investments on Realty Mogul start from $5,000.
5. AKA United Nations – New York
Platform: Prodigy Network
Amount Raised: $68.5M ($10M crowdfunded)
Closed: September 2014
The AKA United Nations raise was a joint venture between Prodigy Network and Korman Communities. They will be renovating the 95 unit, 20 story building at 234 East 46th Street that consists of luxury furnished residences, a lobby lounge, health and fitness center, conference area, and more.
6. Hamptons Luxury Waterfront Residence – New York
Platform: Fundrise
Amount Raised: $1M
Closed: September 2014
This was Fundrise’s first investment in the Hamptons. This property was under construction with real estate development company, Chatham Development, and the platform expects it to attract luxury homebuyers.
7. Plaza at Riverlakes – California
Platform: Realty Mogul
Amount Raised: $17.3M
Closed: December 2014
Plaza at Riverlakes was an equity purchase for a retail shopping center in Bakersfield.
8. Mainstreet Bloomington – Indiana
Platform: CrowdStreet
Amount Raised: $1.6M
Closed: July 2014
Mainstreet Bloomington is a new senior care development project by Mainstreet, a company that develops short-stay rehabilitation centers and long-term care properties. The project raised $1.6 million in a four week period, a record for crowdfunding in health care real estate. Investors are expected to earn a 14 percent annualized yield.
9. 290 and 294 Harman Street – New York
Platform: Fundrise
Amount Raised: $1.8M
Closed: October 2014
This Fundrise project was for a multi-family property that was acquired by Cayuga Capital Management. The plan was to renovate the four adjacent apartment buildings to bring rent up to market price.
10. Lakeside at Town Center Apts – Georgia
Platform: Realty Mogul
Amount Raised: $38.2M
Closed: October 2014
Lakeside at Town Center is a 358 unit apartment including a tennis court, playground, fitness center, and more. The deal was sponsored by Arenda Capital Management, and according to Realty Mogul’s CEO, it is the first ‘Class A’ property they have funded.
Conclusion
While this in not a definitive top ten list, it does highlight many of the high earning real estate crowdfunding campaigns in 2014, as well as others that included milestones for the platforms hosting them. It is interesting to note that five of the ten campaigns from this list were in New York. To learn more about real estate crowdfunding, check out this CrowdCrux article with interesting statistics and other insights into its growth.
