• Tue. Jun 21st, 2022

Rhove to enable real estate investments for as little as $ 1


Columbus real estate company Rhove is presenting its real estate plan to the masses to the public, offering investors the opportunity to purchase an equity stake in properties for as little as $ 1.

For this amount, investors can purchase a share of commercial properties, starting with the innovative mixed-use development called Gravity, on West Broad Street in Franklinton.

Rhove has filed documents with the Securities and Exchange Commission in pursuit of his plan.

The deposit marks an evolution for Rhove, which was founded nearly three years ago by Gravity developer Brett Kaufman and entrepreneur Calvin Cooper (now Rhove CEO) to allow tenants to set aside a portion of their rent to constitute savings for a down payment on a home.

This incarnation of Rhove, founded in March, builds on that by providing a platform that allows individuals to purchase shares in properties through an app.

“Our vision has always been the same. We want to expand homeownership for everyone in our communities, ”Cooper said.

“I believe that democracy is stronger when everyone is an owner,” he added. “We just want to lower the barriers to entry.”

According to its documents with the SEC, Rhove plans to issue between 38.6 million and 40.6 million shares at $ 1 for its “Gravity Series”.

Investors would get shares in a subsidiary of Rhove that owns part of Gravity, Kaufman’s mixed-use development on West Broad Street in Franklinton, valued at $ 100 million. The property comprises 234 apartments, 45,664 square feet of office space, 35,807 square feet of retail space and a 564-space parking garage.

Cooper said Rhove was working with owners of a dozen properties, including another Columbus development, to get individuals to invest through Rhove.

While small individuals can now invest in commercial real estate through real estate investment trusts, Cooper said this allows them to invest in specific properties.

“At the moment, the barriers to owning real estate are far too high,” he said. “Millennials have zero dollars in real estate wealth, and real estate ownership is so important to wealth creation.”

There is no public market for Rhove shares, but Cooper said the company plans to introduce a feature on its app that allows investors to post their shares for sale.

However, investors would more generally benefit from operating profit distributions and long-term gains when selling the property.

Rhove joins a growing list of companies designing platforms that allow individual investors to buy small shares in properties. Dublin-based company ReAlpha, which allows individuals to buy portions of Airbnb properties starting at $ 2,500 (or $ 10 for shares in the company itself), announced last month that it intends to go public. .

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@JimWeiker


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