One recent entrant into the field is Arrived, a fledgling real estate firm backed by Amazon.com founder Jeff Bezos. Last month, company officials entered the rental fund space with a twist – a fractional real estate investing platform that has already lured nearly half-a-million retail investors, as Yahoo Finance reported. The platform enables investors to buy shares of single-family rental properties with as little as $100, the site reported.
In Seattle, Security Properties last April launched a $200 million fund investing in 11 markets from Austin, Texas, to Nashville and the West Coast, as Multifamily Biz reported. Last week, an investment firm named Declaration Partners, backed by Carlye Group Inc. co-founder David Rubenstein, began raising some $400 million toward investments primarily in multifamily, Fortune reported.
That’s just a handful of examples in a growing tide of investment. Aware of the growing competition in the investment space, KDM Financial has strategized accordingly. MacDonald-Korth said KDM’s fund will focus primarily in the secondary markets in the central and southeast portions of the US.
“Multifamily development and construction lending and take-out in major markets is definitely competitive,” she said. “We are looking to do both lease-up and value add lending, primarily in secondary markets. That’s where we find that there’s less competition and more value for us and our investors in those kinds of secondary markets.”
Any anxiety what with this being the lender’s first fund vehicle? Given the lender’s track record – with some $600 million in balance sheet commercial real estate financing since 2017 – that would be a resounding ‘no’.
Source: mpamag.com