Mainstreet is taking a crowdsourcing approach to the financing of senior care development.
As a means to finance its ongoing growth efforts, short-term rehabilitation and boutique nursing home developer Mainstreet is rolling out a direct investment initiative that connects crowdfunding with its latest project, a Bloomington, Indiana short-stay transitional care and assisted living facility. By teaming up with CrowdStreet, Mainstreet is offering investors the option to commit capital directly to the project—online.
The project opened for investment Monday.
“Consistent with our mission to think differently, innovate and transform industries, Mainstreet is among the first to offer private real estate investment opportunities directly to the public,” said Zeke Turner, Founder and CEO of Mainstreet. “Direct investment initiatives for real estate have great potential to not only fund worthwhile projects like this, but also to provide individuals interesting and compelling opportunities they historically may not have had access to.”
Portland, Oregon-based CrowdStreet offers individual investors the opportunity to become involved in multimillion-dollar real estate development projects via its online platform. Investors commit a minimum of $5,000 toward the overall funding goal and receive returns according to the terms of each project.
For Mainstreet Bloomington, the plan includes the development of a 66,197 square foot building with 100 beds. The property falls into Mainstreet’s Medical Resort line of communities and will include a rehab center, movie theater, game room, restaurants, walking trails and other amenities.
The total property value is $13.38 million, with bank financing comprising just over $10 million, Mainstreet contributing $1.84 million and a CrowdStreet goal of $1.5 million. A day after opening for funding, CrowdStreet had raised $155,000 of the $1.5 million goal for the Bloomington project.
Investors who participate directly in the MS Bloomington development project earn a targeted 10% annualized cash yield plus potential upside, Mainstreet says. The minimum project investment is $10,000.
Prior to investing, interested parties are able to review the project details and information through a secure online portal.
“We couldn’t be more pleased with the opportunity to work with Mainstreet on this pioneering initiative,” said Darren Powderly, Co-Founder of CrowdStreet. “Our goal is to connect accredited investors with high-quality, professionally-managed real estate investments. The Mainstreet team has a proven business model and a track record of success.”
Written by Elizabeth Ecker