The real estate crowdfunding platform Sharestates has surpassed $1.3 billion in capital commitments after securing up to $500 million each from a private equity fund and a private real estate fund.
So far the New York-based platform has originated over $150 million in loans across more than 210 projects, with an average loan size of approximately $728,000, since its February 2015 launch. But its current trajectory has it on a $25-$30 million monthly origination volume, according to the firm.
Sharestates has returned over $50 million to investors with an average return rate of 11.36 percent for 2016, with zero loss of principal.
Allen Shayanfekr, co-founder and principal at Sharestates, previously told Real Estate Capital that he started the platform in order to open up access to CRE investments, both equity and debt, to smaller investors and newcomers to commercial real estate finance. Sharestates requires a minimum $1,000 investment.
The platform is part of a wave of over 100 crowdfunding real estate platforms, which connect individual and institutional investors to pre-vetted equity and debt investments offered online, that have launched since the Jumpstart Our Business Startups (JOBS) Act in 2012 allowed public solicitation of private capital investment in the US.