par Equity Multiple Inc (NASDAQ:MMI)
EquityMultiple Witnesses 3x Growth in Investor Engagement, Signaling CRE Market Turnaround
With a 6.5x Increase in Interest for Alpine Notes, EquityMultiple Captures Unique Insights into CRE Market Sentiment
NEW YORK, NY / ACCESSWIRE / July 31, 2024 / EquityMultiple, a leading real estate investment platform, today announced a significant uptick in activity over the past quarter, both in terms of individual investor interest and transaction volume on the financing side.
Commercial real estate markets may be at, or already past, their bottom. In July, The Green Street commercial property price index rose for the first time in roughly two years. EquityMultiple's first-party data corroborates a turnaround. The firm sits at the intersection of commercial real estate finance, and sentiment from individual accredited investors looking to access the commercial real estate asset class. As such, EquityMultiple's data offers a unique viewpoint on CRE markets.
The firm monitors interactions with investment offering listings on its platform, representing interest from individual accredited investors. Over the 90 days ending July 24th, the firm found that total interactions with investment listings increased by approximately 3x versus the prior 90-day period. While investor interest picked up across all real estate investment types on the EquityMultiple platform, a few types of investments stood out as showing particular growth in enthusiasm: EquityMultiple's Alpine Note product, which accrued nearly 7x more views, period-over-period, and value-add investment offerings, which accrued nearly 5x more views.
"The data shows a bit of barbell-shaped growth in terms of what investors are interested in," remarked EquityMultiple Chief Growth Officer Soren Godbersen. "The Alpine Note is still very popular given attractive rates and the fact that investors are still looking for meaningful real yields at a spread above what t-bills are delivering. At the same time, interest in real estate private equity is coming back, including value-add strategies that can bring an alternative source of total return versus public equities."
EquityMultiple also reports meaningful growth in new investors participating on their platform. At the close of Q2, the firm reported 58% growth in new investors quarter-over-quarter, up 19% year-over-year on a quarterly basis.
EquityMultiple's capital markets team, EM Investment Partners, evaluates opportunities across the country, across sectors, and across both private credit and equity. With interesting rates leveling off and valuations potentially calibrating to a new normal, EM Investment Partners is evaluating a greater volume of potential deals, screening over a billion dollars of opportunities in the first half of 2024.
While the volume of equity opportunities has picked up significantly, the firm's lending platform is currently seeing the best risk-adjusted returns in a long time. EM Investment Partners recently closed on an $18.8M value-add senior bridge loan on a quality multifamily community in Atlanta, GA, a transaction sourced via Marcus & Millichap's broker network (EquityMultiple and Marcus & Millichap entered into a strategic partnership in late 2023).
Remarked EquityMultiple CIO and co-founder Marious Sjulsen, "We're seeing signals everywhere that the second half of the year is going to be much higher volume than the first half. We see it on both sides of our marketplace: stronger demand from individual accredited investors, and more financing requests from quality sponsors and operators. We look forward to serving both sides of the market as CRE transaction volume picks up."
About EquityMultiple
EquityMultiple is a premier investment management and technology firm offering unique real estate private equity and private credit opportunities to accredited investors. Since its inception, EquityMultiple has facilitated over $6 billion in commercial real estate transactions, partnering with experienced real estate operators across key markets in the United States. The firm's innovative platform provides investors with access to individual properties and funds, blending cutting-edge technology with institutional-quality real estate investing.
Contact Information
Jessica Lombao
jessica.lombao@issuerdirect.com
SOURCE: EquityMultiple
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