Two real estate investment firms that are redeveloping 38 Main St. in downtown Westport ”“ a 10,000-square-foot commercial address ”“ are crowdfunding the purchase of the property with the help of individual investors.
The investment as presented in a press release “is projected to deliver some degree of current cash-on-cash return (average 3.8 percent) during the redevelopment, and an annual total return between 9 percent to 13 percent over the investment horizon.”
- The crowdfunded 38 Main St. in Westport.
The total purchase price of 38 Main St. was $9.25 million. The sponsors are led by ATCO, an 80-plus-year-old New York City-centric real estate investment/ownership company, and
Darien-based real estate investment firm Forstone Capital, both of which are identified in the press release as equity investors in the project.
So far, nearly $500,000 has been raised from individual investors through RealCrowd.com, an online real estate investment site. “Only five spots remain for investment in the property,” the press release said, identifying the minimum investment as $25,000.
RealCrowd co-founder Roman Rosario said, “RealCrowd has helped ATCO reach accredited investors in Connecticut and across the country who historically have not been able to participate in private equity investments that were limited to closed networks of families or friends. Making investment offerings from quality sponsors accessible to a wider audience literally allows more people to participate in excellent risk-adjusted returns through commercial real estate investing.”
The public advertisement of investment opportunities such as 38 Main St., according to the press release, is allowable under the federal JOBS (Jumpstart Our Business Startups) Act, which was enacted in 2012.
