NEW YORK–(BUSINESS WIRE)–iintoo,
a global real estate social investment network, and RREAF
Holdings LLC, a Dallas-based commercial real estate owner/operator,
have formed a new joint venture to provide management services
for RealtyShares’ existing investment portfolio, including
continuing investor customer service, and to offer RealtyShares’
registered investors new investments through the iintoo and RREAF
platforms.
As one of the leading online real estate investment platforms in the
U.S., over the last five years, RealtyShares has raised $870M in
investor revenue from over 1,100 investments. The newly formed joint
venture will provide management services for 300 active projects,
representing over $400 million in debt and equity positions for assets
valued at approximately $1.5 billion. RealtyShares’ investors will
directly benefit from professional oversight and ongoing management of
their active investments and gain access to a broader array of
commercial real estate investment opportunities via the iintoo and RREAF
platforms.
With the addition of RealtyShares’ assets and investor database, iintoo
will now become one of the world’s largest real estate investing
platforms, with oversight of assets of approximately $2.5 billion. This
allows iintoo to deliver its disruptive, crowd-sourced real estate
investing approach, including active management of all investments
through the life of each deal, equity protection on principal
investments** and a social investment community, to registered base of
approximately 200,000 investors.
“Taking on RealtyShares’ portfolio management services allows iintoo to
become one the world’s leaders in online real estate investing and will
enable us to accelerate our vision for investors all over the world to
acquire high-quality real estate investments as simply as purchasing
stocks. We have a disruptive model that is changing the traditional
paradigm of investor behavior in everything connected to real estate
investments. Our approach combines innovation and vast expertise in the
commercial real estate investment world, making us one of the fastest
growing startups in the realtech sector today.” said Eran Roth, CEO of
iintoo.
By becoming part of the RREAF family, RealtyShares’ investors will gain
direct access to a commercial real estate firm with industry roots that
go back over 35 years. As a leading owner, operator and developer, RREAF
has experienced first-hand how technology platforms such as RealtyShares
are transforming the commercial real estate landscape, allowing
tremendous access and exposure for hundreds of thousands of accredited
investors to a sector of investing that was not fully accessible to them
just a few years ago. RREAF is deeply committed to managing the
RealtyShares portfolio to serve the existing investors and allow this
new form of real estate investing to continue to thrive.
“It is critical to us that the investors who backed 1,100 deals through
RealtyShares have their accounts professionally managed and serviced.
RREAF brings to RealtyShares’ investors management expertise based on
over 35 years of experience in acquiring, managing and exiting
transactions through varying degrees of complexities and market cycles,
which will help ensure the existing investments are managed as prudently
as possible. RREAF has eight transactions in which RealtyShares raised
common or preferred equity from several hundred investors and assisting
our investors, along with thousands of others that faced significant
uncertainty in the wake of RealtyShares’ difficulties, is our top
priority,” said Kip Sowden, CEO of RREAF Holdings LLC.
About RREAF Holdings LLC
RREAF Holdings LLC is a privately-held Commercial Real Estate firm based
in Dallas, Texas, with roots that go back over 35 years in the industry.
During the first 17 years of operations, RREAF principals and
predecessor companies were initially involved in commercial real estate
investment banking, focusing primarily on mortgage originations and
investment sales before transitioning to the principal side of
commercial real estate over the past nearly 20 years. More recently,
RREAF has focused on expanding its real estate portfolio through a
programmatic value-add multifamily acquisition platform, an
opportunistic hospitality and resort redevelopment platform, along with
targeted ground-up development. RREAF’s vertically-integrated corporate
structure employs over 240 people across many regions of the nation
handling all aspects of commercial real estate. Underwriting, due
diligence, capital markets and legal teams work closely together during
the acquisition phase. Once acquired, a property benefits from in-house
asset management, property management, construction/development
management, project/CapEx implementation, and ongoing accounting and
legal support. RREAF’s mission is to provide an outstanding level of
service, excellence, and expertise in the commercial real estate market,
while striving to meet or exceed the high expectations of its investors,
partners, residents, and guests at all its owned/operated properties. As
principal partner, RREAF has built a diversified portfolio through its
core competencies in excess of $850M over the past five years, with
current pipeline projections pushing the portfolio past $1.2 Billion in
AUM by the end of 2019. For more information visit http://www.rreaf.com
About iintoo
iintoo is a New York-based social investment network founded in 2015,
specializing in exit-oriented real estate investments. Since inception,
iintoo has raised equity for real estate investments, through its
digital platform, in an amount just shy of $200 million with assets
under management of approximately $1 billion. With the addition of
RealtyShares’ assets, iintoo will have more than 200,000 registered
investors and a gross asset value of $2.5 billion under management.
Through iintoo’s platform, accredited investors have direct access to
premium commercial-grade real estate investments, an asset class once
exclusively available only to professional funders and high net worth
individuals. iintoo’s unique REIMCO (Real Estate Investment Management
Company) model combines iintoo’s unique management approach, offering
investors hands-on oversight of every opportunity from day one through
exit, with short investment periods so investors can realize liquidity
sooner, and a rigorous, data-driven vetting process designed to curate
deals with the highest potential yields. In October 2018 iintoo launched
Epiic (Equity Protection Investment Community), the first-of-its- kind
real estate investment product that provides principal protection for
private accredited investors. Supported by insurance provided by an
affiliate of Everest Re Group, Ltd. (NYSE:RE), a leading international
reinsurance and insurance organization with operations that span the
globe, and a social community pool, Epiic offers two layers of
protection for investors’ principal. Among iintoo’s shareholders are
Meridian Capital, the largest private mortgage broker in the United
States and Everest Re., which iintoo has recently collaborated with to
offer to its investors an additional layer of equity protection. For
more info visit: https://www.iintoo.com/
* The exit annual yield is equal to the ratio between the total profits
from the equity investment (before tax) and the total raise (amount
invested by iintoo’s equity investors in the project) divided by the
investment term.
** When we refer to “Equity Protection” we are referring to an
arrangement where iintoo epiic GP LLC, the general partner of each
covered issuer (“Covered Issuer”), promises that, even in the event the
underlying project is not profitable or records a loss, the investor in
the Covered Issuer shall receive a specified amount equal to the
original principal investment he/she/it provided (less other amounts
already received by such individual investor during the course of the
investment) subject, however, to significant limitations including but
not limited to repayments for losses in the Covered Issuer are only made
up to a maximum amount of funds available from the retention account and
the policy (where such policy limit may be less than the total amount
invested), repayments are on a first come, first serve basis, and losses
are aggregated across Covered Issuers subject to the same retention
account and policy. iintoo epiic GP LLC, and not investors, is a party
to the policy with Everest Insurance®. As a result, investors have no
direct legal rights under the policy. In addition, beyond use of the
Equity Protection proceeds from the retention account and the policy,
neither iintoo epiic GP LLC nor the Covered Issuer has any obligations
to indemnify investors for losses. For more information, please see
“Business of the Company—Equity Protection” and “Risk Factors—Risks
related to the Equity Protection” in any of our issuers’ private
placement memoranda.
The above may contain forward-looking statements. Actual results and
trends in the future may differ materially from those suggested or
implied by any forward-looking statements in the above depending on a
variety of factors. Such statements are based on management’s current
estimates, assumptions that management believes to be reasonable, and
currently available competitive, financial, and economic data as of the
date hereof. Forward-looking statements are inherently uncertain and
subject to a variety of events, factors and conditions, many of which
are beyond our control and not all of which are known to us. Written and
oral forward-looking statements attributable to us or persons acting on
our behalf are expressly qualified in their entirety by the previous
statements. Except for any obligations to disclose information as
required by applicable laws, we undertake no obligation to update any
information contained above or to publicly release the results of any
revisions to any statements that may be made to reflect events or
circumstances that occur, or that we become aware of, after the date of
the publishing of the above.
Contacts
PRESS:
iintoo
Katie Vroom, Affect
212.398.9680
[email protected]
RREAF Holdings
Kip Sowden
214.522.3300
