LOS ANGELES, CA - RealtyMogul.com, a leading online marketplace for commercial real estate investing, announced the launch of the company’s second real estate investment trust or “REIT,” MogulREIT II.
MogulREIT II aims to invest in multifamily apartment communities across the United States that have demonstrated consistently high occupancy and income levels across market cycles. MogulREIT II also plans to invest in multifamily properties that offer value add opportunities with appropriate risk-adjusted returns and potential for appreciation objectives.
According to the U.S. Census Bureau’s Housing and Vacancy Homeownership Report*, the U.S. apartment market has experienced a strong recovery, as evidenced by the steady drop in vacancies and an average annual effective rent growth of 3.9% per year, between 2010 and 2015.
“Multifamily continues to be a great sector for investment, as people of all ages are choosing to rent rather than buy a home,” said Jilliene Helman, CEO & Co-Founder of RealtyMogul. “The massive millennial generation is the largest share of the American workforce and highly values rentals, which satisfy their desire to maintain a flexible lifestyle. We’re even seeing an emerging demand among baby boomers, who are moving back into city centers from their home in the suburbs.”
MogulREIT II plans to only consist of properties that satisfy RealtyMogul’s rigorous zero-based underwriting process, which analyzes each potential deal from scratch through a combination of proprietary in-house analytics and underwriting. RealtyMogul also spends over $1 million annually for the use of third-party data and technology to vet each deal. The process is so intensive, fewer than 1% of the requests reviewed by RealtyMogul pass its high underwriting standards. Keep in mind there are risks to investing, including loss of capital, so one should evaluate the full offering materials.
MogulREIT II is able to operate with lower fees than some of the other REIT offerings available in the market since it is able to connect with investors through RealtyMogul’s innovative platform, thereby avoiding paying broker dealers selling commissions, which may average 7-8% of invested dollars.
“The response to MogulREIT I overwhelmingly reinforced our view that retail investors are looking for a better way to invest in real estate,” said Hrach Simonian, General Partner at Canaan. “Multifamily is one of the most requested products by our customers and we have tailored this fund to that category."