United States: Ohio-based real estate and technology company reAlpha announced that it has secured a $200 million financing facility from investment management firm Churchill Real Estate to fuel the growth of its acquisitions.
The financing facility was arranged by Jason Krane and Max Kra of Ackman-Ziff Real Estate Group, a New York-based real estate capital advisory firm.
It will also provide additional financial flexibility for reAlpha to accelerate investment in experiential, rental-ready vacation homes once its Regulation A offering ends, as it seeks to empower investors to invest in a global market that ‘it values at $1.2 trillion.
Mike Logozzo, reAlpha’s Chief Financial Officer, said: “This funding facility will be critical in helping us scale our portfolio significantly. With the ability to raise capital from one of the largest funding facilities ever granted to an STR real estate company, we will be able to launch our syndication platform faster than expected.
“Additionally, having a single financing partner will help further streamline the financing portion of the acquisition process, significantly reducing overhead,” he added.
To take advantage of market opportunities, reAlpha hired former Vice President of Invitation Homes, Jorge Aldecoa, in September to advance its investment strategy and expand the firm’s network of relationships. As President of reAlpha Homes, Aldecoa is now responsible for overseeing the company’s new in-house brokerage, reAlpha Realty, which will represent and advise reAlpha on purchase and disposition decisions.
In addition to generating greater efficiencies and cost savings, reAlpha Realty serves to expand the company’s acquisition pipeline through partnership and referral programs with external brokers as well as builders and developers. real estate. With reinforced operational capacities and a substantial financing facility, reAlpha should soon launch its syndication platform in order to democratize the short-term rental economy.
Last year, reAlpha said it was raising up to $75 million in a public offering under Regulation A+ of Title IV of the JOBS Act, after announcing it planned to spend up to $1.5 billion, including debt, to acquire a portfolio of approximately 5,000 short-term rental homes in US cities such as Austin, Dallas and Miami.
Aldecoa recently appeared in a ShortTermRentalz RockSTRz webinar to discuss “The Price is REIT: STR Sector Investment Trends” – see the full recording at this link.