CHEVY CHASE, MD—A new crowdfunding platform for the commercial real estate industry has opened its doors: Locally-based The NNN Crowd is up and running and the company hopes to be able to make its first offering on the site by the end of the year.
Currently, the company is working on building up its database of pre-qualified accredited investors, Dee Hunter, managing director, tells GlobeSt.com.
This will be the first crowdfunding platform aimed specifically and solely at net lease assets, Hunter says. It joins a small but growing group of companies that include Realty Mogul and FundRise that are aimed at crowdfunding for commerical real estate. The NNN Crowd will skew more to the former's model, Hunter says, in that it will seek out a smaller number of investors for a project – say 20 to 30 – who invest larger amounts. FundRise's minimum investment for a project, by contrast, is $100.
Hunter anticipates that the minimum amount to be invested at the NNN Crowd will be $25,000 at an average five-year term. "After that, the investor can liquidate or reinvest."
Hunter anticipates great demand for the platform's services. The net lease space has been characterized with strong demand for a limited supply of quality income-producing product. Because the platform will be devoted only to net lease assets - which tend to be occuppied by long-term, investment-grade tenants - investors will have a better sense of the yields they can reap from their investors, Hunter says.
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