Real estate crowdfunder Realty Mogul announced today it has successfully crowdfunded the Barstow Shopping Center, a 110,000 square foot complex located in the southern California city of Barstow, which is approximately halfway between Los Angeles and the Nevada border.
“With the completion of this offering, the company has enabled individual investors to participate in another significant investment property opportunity in California,” said Jilliene Helman, Realty Mogul’s CEO. “Many of our investors, both inside and outside the state, are highly interested in investing in California commercial real estate.”
Realty Mogul raised $760,000 of the project’s $8 million purchase site via crowdfunding. The project sponsors are U.S. Realty Partners and Compass Acquisition Partners. Their stated goal is to improve the mall facade, reposition it in the marketplace and lease available space before flipping the property for what is hopefully a nice profit for all investors.
Like any significant financial deal due diligence is key, and in the case of the Barstow Shopping Center, the sponsors cited Barstow’s location on a transportation corridor along with key tenants Vons Supermarket and Radio Shack which will serve as building blocks for the repositioning, leasing and eventual sale.
This was confirmed by Ms. Helman in a news release. “Equity crowdfunding this type of real estate investment — a commercial shopping center with several national retail tenants — is at the heart of Realty Mogul’s mission of providing accredited investors with access to quality real estate investments that previously might have been unavailable to them,” she said.
Shopping malls and self-storage facilities are excellent crowdfunding options for real estate investors, given demonstrable cash flow, but they are not the only types Realty Mogul is pondering. “But, ultimately, as long as a potential investment has strong cash flow characteristics, we’re interested in almost any property type. Our goal is to provide enough inventory to our investors so that they can self-select their portfolio and diversify across various market segments within the world of real estate investing,” Ms. Helman offered.