RealtyMogul Closes Largest Online Crowdfunding Deal
The Los Angeles-based crowdfunding company RealtyMogul.com provided a $49 million loan to a real estate investment firm located in Houston and Tel Aviv, Israel—marking the largest debt deal ever originated by an online lender, according to a press release from the lender.
The sponsor, Elite Street Capital, is using the proceeds of the bridge loan to finance the acquisition of the Metropolitan at Buckhead Apartment Homes, a 431-unit multifamily complex in Atlanta. The financing package includes a capital expenditure and interest reserve, which will allow the borrower to complete renovations on the property.
“We were excited to partner with Elite Street Capital to originate the largest online marketplace bridge loan for a commercial real estate transaction,” Jilliene Helman, chief executive officer of RealtyMogul, said in prepared remarks. “As a marketplace leader, this deal demonstrates not only our ability to attract quality sponsors but also our capability to execute on large-balance loans.”
The Metropolitan at Buckhead, located at 3200 Lenox Road NE, contains two pools, a gym and a coffee bar on the premises. The property sits across from the shopping center Lenox Square and is within walking distance to public transportation.
“RealtyMogul.com saw this transaction as an opportunity to finance a property located in a Class A submarket with a defendable basis and a clear path to stabilization,” Ms. Helman added.
Rent for a one-bedroom at the apartment complex starts at $800 per month.
A representative for Elite Street Capital did not respond to inquiries by time of publication.