PALO ALTO, CA—GlobeSt.com has exclusively learned that Pyatt Broadmark has presented a new investment opportunity in connection with the Pacific Northwest Lending Fund. The offering will be facilitated by online real estate platform RealCrowd.
The Pyatt Broadmark Real Estate Lending Fund is a high yield, unleveraged, no-load, evergreen fund that writes short-term, first position loans secured by real estate in the Pacific Northwest. This is the first fund of its kind being offered through an online platform.
PBRELF currently has more than $75 million in assets under management. The goal of the fund is to provide investors with a high-yield debt instrument while minimizing the risk of principal loss and maintaining near-term liquidity.
PBRELF acts like a 'bank' for builders and developers, writing first-position, unleveraged loans only against highly-marketable properties. Loan-to-value ratios amount to no greater than 65%, current portfolio has weighted LTV of 58%. Actual LTV may be lower due to payoffs received prior to loans coming due.
Investors historically have received an 11-12% average cash return which is projected moving forward on a one-year minimum holding period.
The opportunity is being offered by the issuer under SEC Rule 506(c), and is immediately open to accredited investors on the RealCrowd online platform. SEC Rule 506(c) lifts the ban on general solicitation of certain securities to accredited investors.
“After one month we've had a positive experience raising nearly $1 million from a variety of investors from a variety of investment sizes,” says Adam Fountain, principal at Pyatt Broadmark. “RealCrowd enabled us to close more efficiently, automate the traditionally time-consuming administrative tasks, while still giving us to ability communicate with investors directly. There's little doubt that RealCrowd represents the future of syndication.”
In addition to leveraging the new regulatory environment, RealCrowd offers a full suite of investor management tools to real estate operators, bringing tremendous efficiencies to the private capital fundraising process.
Check back with GlobeSt.com in the next day or so to get exclusive thoughts from RealCrowd's co-founder, Roman Rosario on the market and the future for the online syndication and crowdfunding space.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
