NEW YORK — 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
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.
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