A creative new crowdfunding venture offers accredited investors the opportunity to own a piece of America’s most desired real estate.
Earlier this year real estate investment and operating firm Madison Marquette and the Carlin Company successfully recapitalized Oxbow as part of an expansion plan. They are offering $6 million investment on RealCrowd with a minimum $50,000 buy in.
“This first-of-its-kind opportunity for the region means a virtually unlimited pool of potential investors now have the chance to enjoy and own a slice of Napa’s luxury wine country lifestyle.” said Eric Hohmann, President of Madison Marquette. “The Oxbow Public Market represents the best of Napa Valley artisanal food and wine culture, and we are thrilled to open this innovative investment through the RealCrowd platform.”
In 2014 Oxbow generated $24 million in sales, a total which is expected to grow to $40 million by decade’s end. Its leased occupancy rate is 98 percent.
Average regional household income is $85,000 and the area attracts 4.7 million tourists each year.
Oxbow is located in an affluent and educated trade area with average household income of $85,000 and a population of more than 90,000 within a 5-mile radius. Napa Valley attracts 4.7 million visitors annually, primarily from the Bay Area but also from around the United States and the world.
RealCrowd CEO Adam Hooper said real estate crowdfunding is the perfect method to bring desirable investments like Oxbow to a larger group of investors. In the past such deals never got past friends, family and a tight group of institutional capital. Now technology makes it feasible to offer such opportunities to a larger community.
“This is exciting,” Mr. Hooper said. “How often do you get a chance to own a piece of Napa?”
Mr. Hooper added he has worked with Madison Marquette in the past and was looking for a chance to do so again.
“This is the perfect opportunity to build community and to have them invested in the success of the project.”
Mr. Hooper said RealCrowd has been operating for three years, and have offered 75 deals worth a collective $1.5 billion on the platform. Investors pay no fees as issuers pay to list properties on RealCrowd. More than 20,000 people have invested $65 million.
Real estate crowdfunding opportunities like Oxbow capture the imagination of younger investors, Mr. Hooper explained.
“For younger investors, it is not just about a number. The want to have more of a connection to the project.”
In terms of creative opportunities like owning a piece of Napa Valley, Mr. Hooper said not only has the game not even started yet, the industry “is still building the stadium”.
“We are just scratching the surface.”