Market Overview

Southern States Multifamily Portfolio Sells, Exceeding Targeted Returns for ArborCrowd Investors

Share:

Sale of Three-Property Portfolio in Alabama and Mississippi Generates
Over 29% Internal Rate of Return

Marks First Transaction to Complete Investment Cycle for Real Estate
Crowdfunding Platform

ArborCrowd (the "Company"), the only online platform that enables
individuals to make equity investments in institutional-quality
commercial real estate, today announced its Southern States Multifamily
Portfolio (SSMP) investment has been realized ahead of schedule,
outpacing targeted return estimates. One of the properties in the
portfolio is located in Mississippi and sold in late 2017. The two
remaining properties, located in Alabama, recently sold. The aggregate
portfolio sales price was $25.85 million, generating an internal rate of
return (IRR) of over 29% for ArborCrowd investors.

The transaction marks the first of ArborCrowd's six deals to complete
its investment cycle, and its success is a great sign of the long-term
viability of the Company's growing platform. The SSMP investment
opportunity was quickly oversubscribed when ArborCrowd presented the
deal on its platform in February 2017, raising over $2.1 million in just
5 days. The over 29% IRR generated by the sale of the portfolio far
exceeded the targeted 17% to 20% IRR projected by ArborCrowd at the time
of the offering.

"It's incredibly gratifying to be able to deliver such strong returns
for our investors. This milestone transaction reflects exactly the type
of outcome we strive for and validates the rigorous underwriting process
we employ on every deal we bring to the crowd," said Adam Kaufman,
co-founder and managing director of ArborCrowd. "The Southern States
Multifamily Portfolio exemplifies our investment strategy of partnering
with successful, experienced sponsors on multifamily projects with
tremendous upside potential in markets where fundamentals and consumer
demand are aligned."

Kaufman added, "The delta in the realized returns compared to the
projected returns reflects ArborCrowd's focus on realistic outcomes in
its underwriting. While other platforms may tout targeted returns that
are unlikely to be achieved, ArborCrowd would rather employ realistic
underwriting and outperform those projections. No one is ever upset to
receive a greater return than they were anticipating."

The portfolio, which includes Twickenham Village and Hillside Village in
Huntsville, Ala., as well as Gardens of Canal Park in Robinsonville,
Miss., was acquired by affiliates of the sponsor, Varden Capital
Properties, LLC (VCP) and ArborCrowd, in late 2016. Following a
well-executed, more than $1 million capital improvement plan and the
implementation of operational enhancements, VCP sold the portfolio.

About ArborCrowd

ArborCrowd is the only online platform that enables individuals to make
equity investments in institutional-quality commercial real estate
opportunities that were previously only available to institutional
investors. ArborCrowd is backed by more than 30 years of leadership
experience, as it is part of the Arbor family of companies, which
includes Arbor Realty Trust (NYSE:ABR), a leading publicly traded
commercial mortgage real estate investment trust. ArborCrowd leverages
the Arbor family of companies' expansive and proprietary network of
successful real estate dealmakers to source its crowdfunding investment
opportunities. ArborCrowd is so confident in the strength of its deals
that it invests capital to acquire the transaction prior to syndicating
equity investment opportunities to the crowd. This unique approach
provides individuals with transparency and the knowledge of where and
how their capital is being deployed. To learn more, visit www.arborcrowd.com
or follow @ArborCrowd on Twitter,
LinkedIn,
Instagram
and Facebook.

View Comments and Join the Discussion!