New Jersey-based real estate investor-manager Denholtz Associates closed its $7.25 million acquisition on Dec. 21 of a six-story office/retail building at 100 E. Pine St., and plans to invest another $3 million to improve the asset in the coming year, a lead executive with the company told GrowthSpotter on Monday.
Denholtz has been using crowdfunding platform CrowdStreet.com in the past few months prior to closing to try and raise more than $2 million from individual accredited investors, who could contribute as little as $25,000 each.
The six-story office building at 100 E. Pine St. is under contract to a New Jersey real estate investor and manager, which is using the new CrowdStreet.com to round up more than $2 million from individual investors, at as little as $25,000 each.
"We had a very positive experience with CrowdStreet, and we now look forward to bringing this property up to Class A standards," said J.P. Josephson, head of Florida acquisitions for Denholtz. "We know this building has been kind of floundering for the past six years or so. We'll put in well over $1 million in building improvements and $1 million in tenant improvements to add value to the asset."
It's the first Orlando property for which CrowdStreet's web platform has been used to crowdfund, which allows individual investors to buy shares in a property ownership group at low-level stakes rarely seen in commercial real estate.
The investment page for 100 E. Pine will remain active at CrowdStreet.com through the end of January, as Denholtz continues to use the site's marketplace and tools to raise a target of $2.07 million in equity from individual investors.
That equity total from individuals will be a blend of Denholtz's existing investors, new investors who come to the opportunity through a Denholtz-sponsored direct investor portal that CrowdStreet facilitated, and those who invest in the project directly through CrowdStreet.com.
"There are still a number of investors in motion for the 100 E. Pine project," said Ian Formigle, vice president of investments at CrowdStreet. "Between now and January, we're confident (Denholtz) will hit that ($2.07 million) target."
Built in 1977, the building at 100 E. Pine St. features 82,892 square feet, of which only 48 percent leased at the time of marketing, despite an occupancy average of 86 percent in the immediate sub-market.
This is Denholtz's second investment in the Greater Orlando area, in addition to a single-story flex office property the company owns in Winter Park.