Crowdfunding marketplace CrowdStreet has listed a mezzanine financing for 30 Knightsbridge Road, a four-building class B+ office space in Piscataway, New Jersey, sponsored by EverWest Real Estate Partners.
By listing on CrowdStreet, EverWest is targeting a raise of USD1.7 million as part of its USD6 million mezzanine financing.
The target annual cash yield to investors is 10.5 per cent.
The investment opportunity in 30 Knightsbridge offers risk-adjusted returns, as the mezzanine loan is valued at USD92 per square foot, compared to total property value of USD119 per square foot.
"CrowdStreet is excited to work with EverWest and provide access for investors to participate in the 30 Knightsbridge mezzanine loan," says Tore Steen, CrowdStreet's CEO. "With the property's strong tenant base, proximity to major transportation routes and New York City, as well as advanced infrastructure and amenities, we believe that 30 Knightsbridge is a great example of the institutional-grade deals we are listing on the CrowdStreet marketplace."
30 Knightsbridge, which is valued at USD82 million, is comprised of 686,316 square feet of commercial office space. Currently 91 per cent of the four-building property is leased to nine tenants, including AT&T, QualCare, AECOM Technology, Cablevision and Paychex North America.
Keystone Property Group acquired the property in June 2014 as part of USD230 million purchase of a 2.3 million square foot, 12 building office portfolio owned by Mack-Cali Realty Corporation.
"We chose to post 30 Knightsbridge on the CrowdStreet platform because they focus on and understand institutional-grade commercial real estate," says Thomas Ling, director at EverWest Real Estate Partners. "The CrowdStreet business model provides a modern approach to online capital formation that complements our traditional fundraising process. The senior management team at EverWest has collectively invested over USD30 billion across the US and we are confident that 30 Knightsbridge presents an attractive opportunity for investors."
CrowdStreet recently closed a large fundraising effort on behalf of Mainstreet, the nation's largest developer of short-stay rehabilitation and long-term care properties, raising USD1.6 million in just four weeks, one of the largest raises for a real estate crowdfunding transaction.