Tech Enabled Investment Firm is Changing the Multifamily Investment Landscape Leveraging Data and AI
Offerd, an integrated commercial real estate technology and investment firm, has launched the first and only direct buying platform for multifamily.
With players such as Zillow, Offerpad and Opendoor driving the single family iBuying industry, Offerd through its Offers program brings something similar to the massive multifamily sector where direct acquisitions already represent 40% of market place transactions.
Giving free access to its best in class valuation estimate is Offerd’s first step in providing investors and brokers an idea of what their asset might be worth. From there, owners and brokers can confirm a few details to receive a more accurate offer within three business days, avoiding brokerage fees and increasing certainty to close through Offerd’s partnership with best in class operators.
For the brokerage community, Offerd has another compelling offer. As brokerage fees have seen ever greater compression, Offerd mitigates this compression by paying brokers a 1% buy-side fee for off-market deals regardless of what is earned on the sell side.
“Brokers are a crucial part of the investment ecosystem, and we see a future where brokers continue to provide a valuable service which will be enhanced through technology such as Offerd’s.” David Luebke, Chief Operating Officer
The multifamily real estate investment landscape has become more competitive than ever. Multifamily is the largest commercial real estate sector by transaction volume. It is seen as the safest sector, and investment volume continues to increase from domestic and foreign capital sources. Multifamily is an undersupplied market that is projected to have consistently increasing demand due to changing rental preferences.
Offerd is mitigating the challenging competitive landscape by partnering with best in class operators in the top 100 markets nationally for direct acquisitions through its Offers Program. Qualifying partners, who must have at least $200M in AUM and focus on Class B & C multifamily assets, receive exclusive access to Offerd’s qualified deal flow.
“In an era where quantitative investment firms rule the financial world, I was inspired to take the same approach to multifamily investments. Commercial real estate has a treasure trove of data, but no firm seemed to have built the technology stack to analyze the marketplace, find the best assets on or off-market and build a process to acquire these assets. We wanted this to exist, so we built it.” Travis Farese, Founder & CEO
To compete in the publicly marketed world, Offerd realized it needed to look at hundreds of deals to narrow down to a handful. No technology existed to efficiently centralize, evaluate, sort, visualize and bid on marketed deals. In partnership with Esri, the global market leader in GIS software, Offerd has built its own acquisitions platform. It allows users to efficiently filter for assets with the best combination of growth, value add and price. Initially for internal use, Offerd now licenses its technology for marketed properties to external users.