Mainstreet Touts Crowdfunding Success
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based Mainstreet Property Group LLC says it has raised more than $1.6 million through a four-week crowdfunding campaign. The company says the funding is helping support construction of a senior care development in Bloomington.
July 18, 2014
News Release
Carmel, Ind. — Mainstreet, the nation's largest and most innovative developer of short-stay rehabilitation and long-term care properties, has announced record-setting results for a recently completed direct investment initiative to fund a new senior care development project in Bloomington, Indiana. Helping spur this effort was CrowdStreet, a crowdfunding-type marketplace that connects accredited investors with institutional-quality real estate investments.
In total, the effort raised over $1.6 million from U.S. accredited investors within a four-week period. To date, the project’s $1.6 million total and fast timeframe represent U.S. records for crowdfunding only from accredited investors in health care real estate, senior living and ground-up development properties.
“American consumers have embraced Mainstreet's transformative properties which offer desirable care and rehabilitation services,” explained Zeke Turner, CEO of Mainstreet. “It's only natural that investors would embrace the same model. Changes in the JOBS Act have allowed us to democratize the investment process, bringing these opportunities directly to the investors. We’re energized by this initial response and are excited to offer more of these opportunities in the future.”
“By providing access to a larger pool of accredited investors and streamlining the fundraising effort, CrowdStreet helped Mainstreet raise a large amount of capital in a very short period of time without diverting focus from their business,” said CrowdStreet Co-founder Darren Powderly, CCIM. “The CrowdStreet marketplace is designed to simplify transactions between U.S. accredited investors and real estate operators like Mainstreet. This Bloomington campaign produced a tremendous result and we look forward to generating more interest and capital for Mainstreet in future projects.”
Bloomington’s 66,197-square-foot, Next Generation care and rehabilitation facility will feature 100 recovery suites. The facility began its construction in June 2014 and is estimated to complete construction in May 2015.
Accredited U.S. investors with a stake in the property are projected to earn a targeted 14 percent annualized yield (10 percent paid quarterly with a 4 percent special distribution at the end of the project).
Source: Mainstreet