reAlpha secures $200m financing facility to accelerate investments
US: Ohio-based real estate and technology company, reAlpha, has announced that it has secured a $200 million financing facility from investment management firm Churchill Real Estate to fuel its acquisition growth.
The financing facility was arranged by Jason Krane and Max Kra from Ackman-Ziff Real Estate Group, a New York-based boutique real estate capital advisory firm.
It will also provide additional financial flexibility for reAlpha to accelerate investments in experiential and rent-ready vacation homes upon the completion of its Regulation A offering, as it seeks to empower investors to invest in a global market that it values at $1.2 trillion.
reAlpha CFO Mike Logozzo said: “This financing facility will be key to helping materially scale our portfolio. With the ability to leverage capital from one of the biggest financing facilities ever given to a STR real estate company, we will be positioned to launch our syndication platform more quickly than anticipated.
“Moreover, having a single financing partner will help to further streamline the financing part of the acquisition process, reducing overhead significantly,” he added.
To capitalise on the opportunities in the market, reAlpha hired former Invitation Homes vice president Jorge Aldecoa in September to advance its investment strategy and expand the company’s network of relationships. As president of reAlpha Homes, Aldecoa is now responsible for overseeing the company’s newly launched in-house brokerage, reAlpha Realty, which will represent and advise reAlpha on purchase and disposition decisions.
In addition to driving greater efficiencies and cost savings, reAlpha Realty serves to expand the company’s acquisition pipeline through partnership and referral programmes with outside brokerages as well as home builders and developers. With enhanced operational capabilities and a sizeable financing facility, reAlpha is set to launch its syndication platform shortly in order to democratise the short-term rental economy.
Last year, reAlpha said that it was raising up to $75 million in a public offering under Regulation A+ of Title IV of the JOBS Act, after announcing that it was planning to spend up to $1.5 billion, including debt, to acquire a portfolio of around 5000 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: Investment trends in the STR sector” – view the recording in full at this link.