Miami, FL (PRWEB) June 14, 2016
MIAMI, June 14, 2016 --EarlyShares, the leading real estate crowdfunding investment platform, has closed its latest real estate investment opportunity from RPS Hotel Holdings, LLC. The offering was a $3.125 million equity capital raise for the recapitalization and renovation of a 90-room Courtyard Marriott hotel property in Lynchburg, Virginia. The deal featured estimated investor IRR of 15 percent and estimated cash-on-cash returns of 14.7 percent. The sponsor intends to launch a follow-up deal of similar asset quality and economics within the coming months. (Investors can sign up for EarlyShares here to receive updates on RPS Hotel Holdings’ next deal.)
The recently closed Marriott Courtyard offering was a real estate crowdfunding deal in which accredited investors were eligible to participate for a minimum investment of $25,000 or more. EarlyShares closed the offering with a combination of direct investments from U.S.-based investors and $1.7 million sourced from international investors. (The international investors’ contributions were pooled into an “EarlyFund” LLC managed by EarlyShares Management.) As the sponsor, RPS Hotel Holdings contributed 30 percent of the total equity raise.
The Marriott Courtyard offering benefited from a number of factors that made it a compelling investment opportunity. The property, situated just outside Liberty University, is consistently the #1 or #2 performing hotel in the region. In spite of being due for renovation, the hotel had grown in both revenues and net operating income in recent years. The crowdfunding capital raise for the property’s renovation and recapitalization – which included a $2.2MM renovation to completely modernize the hotel to 2016 brand standards – provided a unique opportunity for EarlyShares investors to own a premium branded Marriott hotel with in-place cash flow, upside opportunity, and an eighteen-year franchise agreement personally guaranteed by the sponsor.
“Our team at RPS Hotel Holdings is very pleased with the results of the Marriott Courtyard capital raise. We look forward to returning to EarlyShares to crowdfund our next real estate deal,” said Richard Pietrafesa, Managing Member of RPS Hotel Holdings. “Our organization takes a very disciplined approach to asset acquisition and management, and we’re happy to be working with EarlyShares to bring more investors into the exciting deals in our portfolio.”
“EarlyShares is committed to working only with highly respected real estate developers and sponsors – and RPS Hotel Holdings is an excellent example,” said Heather Schwarz, co-founder and CSO of EarlyShares. “The Marriott Courtyard deal was exactly the kind of return driven investment offering EarlyShares specializes in sharing with our investor base. We look forward to helping RPS close their next capital raise quickly and efficiently through our state-of-the-art platform.”
To browse all investment opportunities on EarlyShares, click here.
Due to regulatory restrictions, only accredited investors who are registered users of EarlyShares are currently able to invest in opportunities on the EarlyShares platform. Interested investors can sign up here and fill out an accreditation questionnaire to determine if they are eligible to invest.
EarlyShares is the trusted real estate crowdfunding platform that gives accredited investors direct access to vetted, return driven investments in commercial real estate. Under new securities regulations, EarlyShares streamlines the processes of real estate investing and capital raising to make them more accessible, transparent, and data-driven. Thousands of investors are seeking to invest nearly $300 million on EarlyShares in the next 12 months. For more information or to join the ‘Future of Investing,’ visit EarlyShares.com.