Toronto-based real estate crowdfunder NexusCrowd closed its second deal of the fall, after announcing a $500,000 raise for two industrial properties in Toronto and one in nearby Mississauga with a combined square footage of 110,000 square feet.
The properties had been purchased by Downing Street Realty Partners, which began redevelopment, including removal of environmental contaminants on the Toronto properties, more than one year ago.
The total equity raise for the project, which has a target completion date of October 2016, was $5.8 million. NexusCrowd raised its share in five weeks.
This recent investment caps a successful fall which saw the platform raise a total of $1 million for two deals. NexusCrowd CEO Hitesh Rathod said that total confirms investor interest in commercial real estate. Investors are also attracted to his platform for other reasons, he explained.
“Investors also appreciate that NexusCrowd has gone through significant regulatory scrutiny and is licensed as an Exempt Market Dealer. Their confidence is extremely important as we continue to gain solid traction in this new and growing space.”
Downing Street partner Marc Canale explained how real estate crowdfunding fits into his business plan.
“We have over 30 years of experience developing and investing in commercial real estate but we wanted to access new sources of capital seamlessly without disrupting our business model. Our long-term partnership with NexusCrowd is a perfect fit because it enables us to do that. We are extremely pleased with how NexusCrowd executed this deal.”
NexusCrowd provides accredited investor access to deals which are at least half funded. They have an exempt market dealer license which allows them to partner with institutions on debt and equity investments. The minimum investment is $10,000.
Downing Street Realty Partners concentrates on real estate investment management and real estate merchant banking as both a principal and independent adviser. Since 1986 it has been involved in more than three million square feet of development across Canada.