DIVERSYFUND LAUNCHES $50 MILLION GROWTH FUND FOR MULTIFAMILY & COMMERCIAL REAL ESTATE DEALS
DiversyFund, a crowdfunding platform recently launched a $50 million growth fund for multi-family and commercial real estate deals. Investors in the fund will own shares in a variety of real estate investments and 80% of the fund is dedicated to multifamily properties and commercial properties.
Annual projected returns are between 15% and 20% and the minimum investment is $5000. This fund is the second to be offered by DiversyFund after its Income Fund which now has a five-year track record of providing double-digit returns to investors.
DIversyFund CEO Craig Cecilio said “We believe the way we invest in real estate has to change. Up until now, it has been next to impossible for the average investor to get involved in commercial and multi-family real estate projects. But through our platform, investors now have access to top-line real estate asset classes previously limited to a select few.”
The Commercial and Multifamily Real Estate Growth Fund is meant for investors who want to build wealth through real estate for a period of at least five years. During the first few years of the fund, DiversyFund will use its capital to invest in a series of projects. After five years, it will then begin to sell its assets, making final distributions to its investors. Investors also have the opportunity for early redemption after two years.
One of the first assets in the fund is a 58-unit multi-family housing project with 5000 ft.² of commercial space in the Hillcrest neighborhood in San Diego, as well as a three-unit student rental property near to the University of San Diego. Traditionally, multi-family housing has outperformed its peers in strong and weak markets and the strategy is to include “ground-up” asset classes that may appreciate over time while renters provide cash flow. Additionally, DiversyFund will look to purchase existing multifamily properties that could increase in value when improvements are made and when rents are increased. The housing shortage in California provides investors with previously unattainable opportunities.
Alan Lewis, Chief Investment Officer for DiversyFund has developed and managed over $200 million in real estate assets, previously working as a corporate attorney specializing in real estate transactions. Cecilio has more than 20 years of experience in Southern California and commented “We continue to search for the best and most unique multifamily and commercial real estate opportunities for investors using our combined expertise. California is among the best areas in the world for real estate appreciation. We know the Californian marketplace. Now, through our platform, anyone around the world can invest in real estate in this area.”