EQUITYMULTIPLE, an online investment marketplace — or crowdfunder — announced its entrance into the debt space by offering investors the ability to participate in a pre-development bridge loan secured by a development site in San Francisco, California.
The investment is part of Urban Green Investments’ $3.4 million pre-development loan to the project’s sponsor, Butterfly Investments.
Butterfly, which acquired the development site — located at 1490 Ocean Avenue — for $5.3 million, and will build 15 condominiums, ground-floor retail and parking.
EQUITYMULTIPLE, which is offering investors an annual return of nine percent net interest over a nine-month term, is accepting minimum investments of $5,000.
Charles Clinton, CEO of EQUITYMULTIPLE, said, “This project is a great example of the kind of debt deals we want to offer investors,” added Clinton. “It offers a strong interest rate (9%), a short term (nine months), relatively low leverage (under 65% LTV) and is secured by a first lien on the property itself.”
Developed in partnership with Mission Capital Advisors, EQUITYMULTIPLE is led by Clinton, a real estate attorney, and chief investment officer Marious Sjulsen. The leadership team also includes Mission Capital executives Peter Shankar, David Tobin, Stephen Emery and Jordan Ray.
The San Francisco debt offering comes on the heels of a recent equity raise on behalf of Bushwack Capital, which is developing a $7 million, mixed-use project in Bushwick.