Dublin firm Realpha to offer $75M worth of stock
The Dublin startup Realpha plans to file a “mini-ipo” next week to raise $75 million in its bid to become the nation’s largest owner of short-term rental homes.
The move is a key step in the company’s plans to buy up to $1.5 billion in homes across the nation that would be rented through Airbnb.
Shares, available through what is called a Regulation A+ offering, would sell for $10 each.
“We’re thrilled to offer Main Street investors access to early-stage investment opportunities through our Regulation A+ offering,” Realpha Founder and Chief Executive Officer Giri Devanur said in a news release.
Devanur announced Realpha in July with Brent Crawford, founder and principal of the Crawford Hoying development firm, which committed $6 million to the venture.
In addition to the $75 million raised through the public offering, Realpha hopes to raise another $75 million from individual investors who would buy shares of properties with as little as $2,500. The combined $150 million would allow the company to purchase $1.5 billion in property, or up to 15,000 homes, assuming a 10% down payment.
Realpha promotes its company as an opportunity for small individual investors to buy into the $1.2 trillion short-term rental industry.
“Our mission is to democratize real estate investing and empower everyone to invest into real assets,” Realpha Chief Marketing Officer Christie Currie said in a news release.
Realpha plans to use technology it developed called Realphabrain to identify the best properties to purchase on the wholesale market to use as short-term rentals.
The company has started acquiring homes in the Dallas and Miami areas and is pursuing properties in metropolitan areas in California, New York, New Jersey, Colorado, Washington and Illinois. Realpha is seeking properties with strong yearround demand in cities large enough to support at least 100 properties to allow them to be efficiently managed.
While some properties may be rent-ready, Realpha expects to remodel many of the houses it buys. jweiker@dispatch.com @Jimweiker