Trending
![False start: Mayor’s ally pitches, then pulls NYC property tax overhaul](https://static.therealdeal.com/wp-content/uploads/2024/07/ft_NY_Property-Tax-Overhaul-150x106.png)
![Tatiana Pino now owns Century Homebuilders after Sergio Pino’s death, her attorney says](https://static.therealdeal.com/wp-content/uploads/2024/07/ft_MIA_Tatiana-Pino-Century-Builders-Group-150x106.png)
![Brian Tuttle hit with $38M foreclosure on his Main Street mixed-use project in Royal Palm Beach](https://static.therealdeal.com/wp-content/uploads/2024/07/Brian-Tuttle-Hit-With-38M-Foreclosure-on-Main-Street-Project_FT-Thumbnail-150x106.jpg)
![“Not even distressed” rent-stabilized property sells for peanuts](https://static.therealdeal.com/wp-content/uploads/2024/07/ft_NY_Inwood-Rent-Stabilized-Sale-1-150x106.png)
Spencer Rascoff’s SPAC strikes $3B deal with Offerpad
iBuyer competes with Zillow and Opendoor
![Spencer Rascoff and Offerpad CEO Brian Blair (Getty, Offerpad)](https://static.therealdeal.com/wp-content/uploads/2021/03/Spencer-Rascoffs-SPAC-strikes-3B-deal-with-Offerpad.jpg)
Zillow co-founder Spencer Rascoff is betting big on iBuying — a move that pits him against the real estate giant he helped to build.
Rascoff’s blank-check firm Supernova Partners Acquisition Company has struck a deal to take iBuying startup Offerpad public in a $3 billion deal, the companies said Thursday.
The deal is expected to generate $650 million in cash for the six-year-old instant home-buyer, which competes with both Zillow and industry leader Opendoor, which went public in a SPAC deal last year.
The Offerpad deal includes a $200 million PIPE (private investment in public equity) from investors including funds managed by BlackRock, Zimmer Partners and Taylor Morrison. Affiliates of Supernova are also investing $50 million directly.
Rascoff, who co-founded Zillow, stepped down as CEO in February 2019, when co-founder Rich Barton took the helm to build what has been dubbed “Zillow 2.0.” That includes a major bet on iBuying and the addition of ancillary services like home tours and mortgages to give consumers a “one-click nirvana.”
Since departing Zillow, Rascoff has been a SPAC evangelist and active startup investor. Last year, he co-founded Pacaso, a marketplace for second homes.
Supernova — whose partners include Sotheby’s Financial Services’ Alexander Klabin, ex-Blackstone Group exec Robert Reid and former Carlyle Group principal Michael Clifton — raised $250 million for its third SPAC last month.
In a statement, Rascoff said iBuying has “barely scratched the surface of real estate.”
“We believe online real estate as a whole is poised to grow rapidly in the coming years and that Offerpad is incredibly well-positioned to grab a huge piece of this market,” he added.
Arizona-based Offerpad was founded in 2015, a year after Opendoor, and has been nipping at the heels of its larger rival. Led by CEO Brian Blair, Offerpad has raised $155 million from investors, according to Crunchbase. It has projected $1.4 billion in revenue this year.
In addition to buying homes, Offerpad allows sellers to partner with it to list their home with a back-up cash offer. It also has add-on services, including home improvement advances, extended stay options and title and mortgage.