FundRebel completed its first commercial real estate acquisition, purchasing a new apartment building in Hollywood for $62 million.
The New York-based crowdfunding real estate start-up bought Nine Hollywood at 809 Jackson Street and 320 South Federal Highway, records show. The 12-story apartment building with 204 units and 7,000 square feet of ground-floor retail was completed this month by the developer, an entity managed by Giuseppe Iadisernia in Hallandale Beach.
Iadisernia sold Nine Hollywood to FundRebel. The buyer obtained a $41 million loan from Franklin BSP Realty Trust, records show.
“Essentially, this is our first acquisition,” said FundRebel COO Allen Konstam. “The value was there even before we started.”
In 2010, Iadisernia paid $2 million for the 0.8-acre development site. In 2022, the developer broke ground on Nine Hollywood after obtaining a $43 million construction loan, records show.
Nine Hollywood offers a mix of studios, one- and two-bedroom apartments, with asking rents ranging from $1,880 to $3,600 a month, said FundRebel CEO Mark Drachman. FundRebel investors put in between $3 million and $6 million for equity in Nine Hollywood, Drachman added.
“We are expecting to take in around $15 million from investors through our FundRebel Dean fund for this project,” Drachman said. “We are currently still actively taking investments. Once the equity is complete for the project, the fund will be closed.”
FundRebel requires a minimum investment of $1,000 to obtain equity in its projects through investor-accredited funds, Drachman said.
Hollywood is a highly attractive multifamily market where rents are cheaper than in Miami and surrounding coastal cities, Drachman said. “There was a lot of room for rental properties here,” he said. “We’ve pre-leased about 15 percent of the building, and we have another 20 percent of the units with deposits on them. We are hoping for stabilization within six to nine months.”
Konstam and Drachman are also managing principals with Condra Property Group, which owns a portfolio of 25 single-story and two-story motels and short-term rental properties along or near the beach in Hollywood.
In September, Condra submitted a site plan with the city of Hollywood to redevelop the 2.4-acre assemblage. The company is utilizing Florida’s Live Local to seek approval for a 628,000-square-foot mixed-use project with 137 condos and 91 apartments with some affordable housing units.