Sharestates Launches Global Varied Term Fund
Sharestates, a leading real estate financial technology (fintech) platform, announced the expansion of its investment offerings to include the “Sharestates Global Varied Term Fund” a Pre-Origination Note Fund (PONF).
Sharestates’ PONF will act as a funding vehicle to originate and sell commercial business purpose loans originated and serviced by Sharestates. With a fixed interest rate and 6-, 9-, and 12-month terms, the short duration and unique nature of the PONF will minimize exposure to economic shifts that may otherwise affect underlying real estate’s property values, allowing global investors to participate in commercial lending through fund structures in addition to Sharestates’ historic whole and fractional note offerings.
“The Global Varied Term Fund is Sharestates’ solution to a demand that has been brought to the Company by its domestic and international investors”, said Amy Doshi, General Counsel. “The PONF provides a tax efficient legal and corporate structure for global investors to indirectly invest in US-based debt while allowing them to rely on Sharestates expertise in commercial lending and its in-depth underwriting process, greatly reducing international investors barriers to entry.”
Since 2013, Sharestates has offered investors first-position Borrower Payment Dependent Notes (BPDNs) associated with single properties or loan portfolios, underwritten by Sharestates, to earn a fixed rate of return. With the launch of Sharestates’ first PONF investors can gain access to a multi-asset exposure fund used to pre-fund first-position mortgages prior to syndicating them on Sharestates’ online platform or selling the loans to institutional whole loan buyers. The PONF will have a fixed interest rate and fixed maturity date, so investors will have minimal exposure to loan maturity.
“Investors across the globe have increasingly looked for exposure to real estate debt opportunities due to its attractive yields on a risk-adjusted basis”, said Allen Shayanfekr, Chief Executive Officer. “We’re excited to offer our investors added value with our first PONF in addition to the BPDNs that Sharestates has offered with a track record of less than 1% principal loss since the company was founded.”
Sharestates’ new Global Varied Term Fund will offer investors high-yield, risk-adjusted returns, and passive income by investing in a broad range of residential and commercial real estate debt opportunities. To date, Sharestates has funded over $3.5 billion in US real estate loans and returned over $2 billion in principal to investors.
“Sharestates’ experience underwriting and servicing BPDNs through successful repayment since 2013 make the company uniquely qualified to offer our investors a PONF”, said Richard Wisniewski, Chief Investment Officer. “Our focus on private debt offers attractive returns compared to the broader credit market, and our ability to bring new opportunities to investors as the market shifts will be key to the company’s growth in 2023 and beyond.”
About Sharestates
Sharestates is a national private lender focused on non-owner-occupied residential and commercial properties. The company creates customized lending solutions for real estate developers and has successfully funded over $3.5 billion in projects nationwide. Sharestates offers the broadest loan programs available in the market with competitive pricing. Since its founding in 2013, Sharestates has been an important source of private capital to real estate investors nationwide seeking short-term bridge financing for rehabilitation projects and long-term DSCR loans for rental properties.
