ArborCrowd Launches $61M SFR Investment Offering in Colorado
ArborCrowd has announced a new offering that allows investors to acquire equity interests in Selby Ranch, a single-family rental (SFR) and build-to-rent (BTR) development located in Colorado Springs, Colo., with a total capitalization of $61.7 million, Commercial Observer can first report.
The deal is the first of its kind for the platform, ArborCrowd co-Founder and COO Adam Kaufman told CO.
“It’s our first single-family build-to-rent asset, and it represents a significant step in ArborCrowd’s broader evolution by enabling us to offer individual investors coveted access to a highly sought-after property type,” Kaufman said. “We’re very excited to bring this new product to our platform.”
AHV Communities (AHV), a vertically integrated developer and operator, is part of the project’s sponsorship group. Affiliates of ArborCrowd, AHV and MDO Capital, a commercial real estate finance firm, have collectively funded 30 percent of the deal’s total equity. Arbor Commercial Mortgage, a national direct lender and member of The Arbor Family of Companies alongside ArborCrowd, provided a $46.2 million loan to finance the construction of the project.
ArborCrowd is looking to raise $10.8 million from investors for the remaining equity, which an ArborCrowd affiliate has prefunded into the transaction. The project is expected to break ground this year.
Once completed in 2024, the 13.2-acre Selby Ranch will feature 163 three- and four-bedroom townhome-style single-family units averaging 1,310 square feet and spread across 47 buildings. Proposed shared amenities include community clubhouse, pool, fitness center and children’s play area.
“The Colorado Springs market is really thriving … [and] features a distinct balance between suburban and urban lifestyles,” Kaufman said. “As factors that include rising home prices, remote work trends, migration to suburban locations and an aging millennial population continue to drive interest in single-family rentals, we see significant growth for this asset class on the horizon.”
The property enables individuals to invest in the SFR and BTR asset classes, two of the commercial real estate’s fastest-growing and most in-demand sectors. Representing approximately 17 percent of the overall single-family housing market, the SFR asset class has seen significant institutional investment, according to ArborCrowd’s press release.
Emily Fu can be reached at firstname.lastname@example.org.