Platform Ventures, a Kansas City-based commercial real estate investment firm, has launched Platform Ventures Diversified Housing REIT, a non-traded Regulation A real estate investment trust. The initial offering size is $50 million and is available to accredited and non-accredited investors with a minimum investment of $25,000.
Platform Ventures Diversified Housing REIT intends to invest in a portfolio of stabilized and income-oriented multi-tenant rental housing properties in the U.S. The company noted that the offering will have a primary focus on multifamily apartments, student housing, and senior living facilities.
The REIT is externally managed by PVDH Manager LLC, a subsidiary of Platform Ventures. North Capital Private Securities Corporation serves as the dealer-manager for the offering.
The REIT is offering two classes of common shares, Class A and Class D shares, priced at $10.00 each.
The minimum initial investment in Class A shares is $1 million if purchased directly by an investor, or $25,000 if purchased through a registered investment adviser. Class D shares can be purchased directly from the company through its affiliated online platform, RealtyClub Platform, without a financial adviser.
The shares are not subject to a broker-dealer commission or dealer manager fees, but include an annual 1.5 percent investment management fee. Class D shares include an annual 0.50 percent shareholder servicing fee.
The REIT has identified two seed assets that will be a part of its portfolio. The first seed asset is the Domain at City Center located in Lenexa, Kansas, one of Kansas City’s sub-markets. The property consists of 200 units and was 96 percent occupied as of June 30, 2018.
The second seed asset is Orchard Corners, a 64-unit apartment building located in Lawrence, Kansas. The property is less than 2 miles west of the University of Kansas, which enrolls approximately 28,000 students and has 1,800 faculty members. As of August 31, 2018, Orchard Corners was 95 percent leased for the 2018-2019 school year.
Platform Ventures is a holding company that invests in real estate, real estate operating companies, and real estate technologies. Through its subsidiaries, the company has more than $1.3 billion in assets under management, as of the second quarter of 2018.