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Tuesday, 16 April 2019

ArborCrowd to 'Take it Slow;' Aims for 4-5 Deals in 2019

ArborCrowd, the crowdfunding operation of Arbor Commercial Mortgage, is aiming to complete four or five transactions this year. That would compare with the four it completed last year, and the eight it's completed since being founded in 2016. Its projected deal volume also is dwarfed by that of other crowdfunding platforms.

Commercial Real Estate Direct Staff Report

ArborCrowd, the crowdfunding operation of Arbor Commercial Mortgage, is aiming to complete four or five transactions this year. That would compare with the four it completed last year, and the eight it's completed since being founded in 2016.

Those numbers are dwarfed by those posted by other crowdfunding platforms. EquityMultiple, for instance, has completed 53 transactions since its founding four years ago. But ArborCrowd is a slightly different animal. It pursues only apartment properties and it's basically a traditional equity syndicator with an online platform connecting it to its "crowd" of accredited investors. It doesn't invest heavily to chase sponsors that might be interested in tapping its crowd for capital, nor does it invest heavily to add to its crowd.

The company is run by Adam Kaufman, who had founded it with his father, Ivan Kaufman, who in 1983 had founded Arbor Commercial. Crowdfunding became a reality after the Jumpstart Our Business Startups, or JOBS Act, was signed by President Obama into law in 2012. The law lifted a ban on the general solicitation of capital investments that had been in...


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