We just entered into a $200 Million Joint Venture with SAIML Pte. Limited, a Singapore-based asset management firm, to invest $40.8 million of equity into short-term rental properties. With leverage, the joint venture expects to invest up to $200 million in vacation rental hot spots in states like California, Arizona, Florida and Tennessee. $200 million must be our lucky number, remember that $200Million financing facility we announced a few weeks ago 😉.

reAlpha and its shareholders (like you) will retain 51% ownership of the assets under management in this new joint venture and will earn customary fees associated with both asset and property management. We are excited to put our technology and team to work and quickly build a pipeline of properties.

Here’s what Bala Swaminathan, Founder and CEO of SAIML had to say:

“In meeting reAlpha and learning about its platform, creative approach to marketing and mission to democratize real estate investments in a better, cheaper and financially inclusive manner, we became convinced the reAlpha’s value proposition is a game changer. We strongly believe that reAlpha has the opportunity to become a global leader in the vacation rental space, and look forward to contributing to its growth.”

But this is potentially just the beginning. Upon mutual agreement, reAlpha and SAIML may expand this partnership with an additional $61.2 million of equity to the joint venture. With debt, this potentially could mean up to half-a-billion dollars in total assets.

So, what does this JV mean for you as a potential shareholder? In addition to our traditional portfolio for everyday investors to become syndicate members, this JV will create a supplemental portfolio of homes; thereby increasing AUM (assets under management) and revenue – factors that determine the company’s future valuation. With this deal, reAlpha and our shareholders will own 51% of up to half-billion in assets under management.

Read the full press release here.

DUBLIN, Ohio, November 01, 2022--(BUSINESS WIRE)--reAlpha (the "Company"), an AI-powered real estate technology and investment company with a goal to empower everyone with the ability to invest in the $1.2 trillion global short-term rental ("STR") market, today announced it has secured a $200 million financing facility from Churchill Real Estate that will help fuel its acquisition growth. The financing facility was arranged by Jason Krane and Max Kra from Ackman-Ziff Real Estate Group, a boutique real estate capital advisory firm based in New York City.

"This financing facility will be key to helping materially scale our portfolio," said Mike Logozzo, CFO of reAlpha. "With the ability to leverage capital from one of the biggest financing facilities ever given to a STR real estate company, we will be positioned to launch our syndication platform more quickly than anticipated. Moreover, having a single financing partner will help to further streamline the financing part of the acquisition process, reducing overhead significantly."

The financing facility provides reAlpha with additional financial flexibility to accelerate investments in experiential and rent-ready vacation homes upon the completion of its Regulation A offering. Through the use of its proprietary AI driven algorithm, reAlphaBRAINTM, reAlpha has established a strong and growing pipeline of STR properties and development opportunities that meet its strict investment criteria.

To capitalize on these opportunities, reAlpha recently hired former Invitation Homes Vice President Jorge Aldecoa to advance its investment strategy and expand the Company’s network of relationships. As President of reAlpha Homes, Mr. Aldecoa is responsible for overseeing the Company’s newly launched in-house brokerage, reAlpha Realty, which will represent and advise reAlpha on purchase and disposition decisions.

In addition to driving greater efficiencies and cost-savings, reAlpha Realty serves to expand the Company’s acquisition pipeline through partnership and referral programs with outside brokerages as well as home builders and developers. With enhanced operational capabilities and a sizeable financing facility, reAlpha is positioned to launch its syndication platform more quickly, helping to democratize the STR growing economy.

DUBLIN, Ohio--(BUSINESS WIRE)--reAlpha, an AI-powered real estate technology and investment company with a goal to empower everyone to invest in the $1.2 trillion global short-term rental (“STR”) market, is pleased to announce their partnership with RARE Treehouse Resorts, a Vancouver-based company specializing in unique and eco-friendly suspended treehouses, to jointly develop a first-of-its-kind treehouse resort in the United States. reAlpha is in the process of identifying land in California to bring this innovative project to fruition, which will feature up to 10 “Free Spirit Spheres.”

“We’ve predicated our business upon data that shows the most viable short-term rental investments that offer the highest returns while mitigating risks, and we see there is real market share to be gained with experiential vacation rentals,” said Christie Currie, Chief Marketing Officer at reAlpha. “In 2021, the experiential home category experienced explosive growth, prompting Airbnb to overhaul its search function into ‘Airbnb Categories’. Through our partnership with RARE Treehouse Resorts, we’ll be able to bring a never-before-seen vacation rental experience to the U.S. and provide our future syndicate members and investors with a truly unique opportunity in this growing category.”

Per AirDNA, there were 88,000 new short-term rentals added to the overall supply in May 2022, leading to an all-time high in total listings. With new traditional houses and condos injected into the STR economy, creating more supply, the demand has only grown for unique stays, or experiential rentals. Airbnb’s Q2 2022 earnings noted that nights booked for unique homes were up 80 percent compared to pre-pandemic levels. Tiny houses (+173%), barns (+160%), domes (134%) and treehouses (+116%) also saw particularly strong interest.

Currie continued, “These types of rentals require specialized asset management, which makes them ideal for a professional investor, like us, that can execute this strategy at scale. Having a community of properties allows us to streamline our operational efficiencies, and provide lodging to single travelers, or groups. What’s more, we’re finding that the capitalization required for experiential property investments call for less debt, and less interest rate exposure, which keeps us more agile in changing economic conditions.”
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RARE Treehouse Resorts’ existing installation in Vancouver Island is the world’s first suspended treehouse resort. Its state-of-the-art “biomimicry” spheres are suspended above the forest floor, with a low environmental impact design that’s built to allow conservation and tourism to exist harmoniously in eco-sensitive locations. The interiors of the spheres are climate-controlled, with surround sound audio, dimmable lights, a kitchenette, love seat and queen bed amidst a fisheye lens window setting. What’s more, these “Free Spirit Spheres” boast an average nightly rate of $350 with an average occupancy rate of nearly 90 percent year-round. Their yearly revenue per unit surpasses $100k and there’s a year-round waitlist. These world-renowned treehouses have been covered by National Geographic, BBC, Business Insider, and more.

“We believe our innovative, suspended resort will be a tremendous success in the United States,” said Ben Vasdaz, Managing Director at RARE Treehouse Resorts. “We’ve consistently boasted occupancy rates greater than 85 percent year-round, with waitlists exceeding 500 guests. The spheres have reached national and international acclaim, all while showing that it’s possible to foster responsible and eco-friendly tourism. We’re thrilled that reAlpha sees that same appeal.”

About reAlpha:

reAlpha is building a digital real estate investing platform that enables its members to simplify wealth creation opportunities through investments in vacation homes while striving to deliver exceptional guest experiences. reAlpha sources and scores properties from the wholesale market using a proprietary AI-driven algorithm called reAlphaBRAIN. It then predicts the viability of each property for the short-term rental market, as well as the projected long-term value. reAlpha’s business plan contemplates eventually allowing investors to buy equity in specific properties, providing opportunities for short-term passive income generation via Airbnb, as well as equity-driven capital appreciation. reAlpha is based in Dublin, Ohio. For more information, please visit www.realpha.com/.

About Rare Treehouse Resorts:

‍RARE Treehouse Resorts is the world leader in suspended spherical treehouse resorts.
We custom design, produce, deliver and install visitor-ready remarkable treehouse experiences in the world's most unique locations. The luxury spheres are designed to mimic nature, operate year-round in all seasonal conditions and are built for 10+ years of operations. Our partnership business model also offers non-compete exclusivity zones. Rare’s goal is to save trees, encourage more people to get outside and enjoy nature. Our mission is to be the most recommended accommodation option in the world.

Our vision is for conservation of eco-sensitive locations and tourism to thrive together.

Contacts
‍media@realpha.com

MIRAMAR, Fla.--(BUSINESS WIRE)--reAlpha, an AI-powered real estate technology and investment company with a goal to empower everyone with the ability to invest in the $1.2 trillion global short-term rental (“STR”) market, is pleased to announce the launch of its in-house brokerage, reAlpha Realty, LLC, a subsidiary of reAlpha Asset Management, Inc. (DBA reAlpha Homes). Operating out of a new office in Miramar, Florida, reAlpha Realty is led by Designated Broker Jorge Aldecoa, who serves as President of reAlpha Homes.

The formation of reAlpha Realty serves to accelerate reAlpha’s growth by significantly expanding its acquisitions pipeline through partnership and referral programs with outside brokerages as well as home builders and developers. In addition to helping source STR investments, reAlpha Realty will represent and advise reAlpha on purchase and disposition decisions, driving greater efficiencies and cost-savings.

“Launching our brokerage represents a pivotal step in our journey toward making ownership in STRs accessible to everyone,”

“By owning more control over the entirety of the investment process, we are able to ramp up deal flow more efficiently and realize greater cost savings. As a top professional in the STR acquisitions space and an experienced broker, Jorge is uniquely positioned to lead this important initiative as we seek to build a national portfolio of STR homes.”

reAlpha plans to materially increase its investment activity in 2023 with a focus on experiential and rent-ready vacation homes, and expects reAlpha Realty to play an important role in the process. Scaling its portfolio aligns with reAlpha’s long-term plan to democratize the STR economy by leveraging its proprietary technology to enable individual investors to purchase minority interests in its properties. In doing so, reAlpha is helping to eliminate the significant barriers to entry for individuals to participate in the potential upside of owning STR homes.

“reAlpha Realty will work toward establishing an even stronger acquisitions pipeline through a highly productive, mutually beneficial broker network. With enhanced sourcing and underwriting capabilities, we are able to bring additional expertise to each and every investment opportunity while simultaneously reducing costs. We’re excited to further build our portfolio of high-quality STR homes and we look forward to syndicating interests in these properties to everyday investors.”

reAlpha is proud to announce our continued expansion with the opening of our office in Miramar, Florida, located between Miami and Ft. Lauderdale, which follows the successful openings of international offices in India, Nepal, and Brazil.Florida continues to lead the nation in dozens of travel and leisure related market sectors and will be a primary focus for us in our initial growth stages. South Florida, comprising Palm Beach, Broward, and Dade County, is home to roughly 45% of the 21 million+ Florida residents.The Florida office will be led by Jorge Aldecoa, newly appointed President of reAlpha Homes and managing Broker of reAlpha Realty. reAlpha Realty will be operating out of the Miramar office location.President Aldecoa said “In thinking about our future growth and expansion - we couldn't think of a better place to be. As we begin to ramp up our acquisitions and associated acquisition pipeline; the expansion of our Florida team will include support staff that will assist with onboarding of new assets.”We are incredibly excited about this step in reAlpha’s journey, and we welcome you to join us in our mission to democratize investment in the short-term rental market!

Introducing the newest Alpha Human to the team, acquisition, disposition, and asset management expert, Jorge Aldecoa!

Jorge has been in the residential and commercial real estate business for over 15 years and has worked at some of the biggest real estate companies in the industry managing multi-billion portfolios. Jorge managed a $1 billion portfolio as Regional VP of Invitation Homes Southeast Florida region, is a previous COO for Firm Capital American Realty Partners, and VP Operations for Transcendent Electra. He also gained experience as Chief Investment Officer of Firm Capital American Realty Partners and Interim Chief Operating Officer for its predecessor.

When the reAlpha team first met Jorge we knew right away that he was gonna be a great addition to our leadership team. He brings the strategic vision, but he's also willing to roll up his sleeves and get  into the details. He understands the roadmap as to how to get from where we are to where we need to be and has the acquisitions, financancing, property management, and guest experience knowledge to execute. And he's just an all around great guy. Together, we are uniting our years of industry acumen to create something truly revolutionary.

To check out Jorge’s newest press release feature click here!

reAlpha has partnered with ICR to assist with the company’s Investor and Public Relations. ICR was founded in 1998 by a team of former Wall Street analysts and has since grown to be a firm that’s integrated vertically by sector and horizontally across every communications discipline. ICR has a dedicated team of real estate specialists that bring a perspective built on decades of practical experience advising real estate firms of all kinds.
‍https://icrinc.com/sectors/real-estate-and-lodging/

reAlpha has partnered with Entoro Capital as the company’s broker dealer for its Regulation an Offering. Entoro provides advice and services to a wide range of established and growth-oriented businesses around the world. Entoro provides financial and strategic advisory services which include Capital Formation (Reg D, Reg A+ and Reg CF), M&A, A&D, leveraged finance, equity/equity-linked financing, restructuring and recapitalization solutions.
‍https://www.entoro.com/about/overview

reAlpha is proud to announce the acquisition of several single-family homes in Kissimmee, Florida, in zoned short-term rental communities. The purchase of these homes expands reAlpha's portfolio and the investment opportunities available to future reAlpha syndicate members, further illustrating the company’s rapid growth. Homes built in short-term rental communities offer unique opportunities for investors and community members alike. Since there are no full-time residents, investors can receive tax benefits and amenities one would expect from a vacation resort, such as hotel-style workout facilities, pools and bars. reAlpha’s investment also stands to benefit the overall Kissimmee community. We plan to partner with the local Orlando community to offer guests special perks like yoga classes, local restaurant discounts, artist features and more in order to create a truly remarkable experience for guests, while also putting money back into the local economy.

“We are looking to set the standard for what investors and future reAlpha members can expect in terms of the quality of our homes,”

“We are pivoting to more rent-ready homes in order to scale faster and meet the demand for these types of investment opportunities. We have been able to purchase these homes with the capital from our Regulation A+ funding round, and we plan to continue to use those funds to scale the portfolio. These initial featured properties are just the tip of the iceberg.”

“We are excited to test out some properties in these zoned communities. We are seeing more and more that short-term rental guests desire a consistent experience. They don’t want to compromise the benefits and comforts of traditional hospitality, and these communities offer the best of both worlds,”

‍https://www.globenewswire.com/en/news-release/2022/03/03/2396375/0/en/reAlpha-acquires-several-ready-to-rent-homes-in-the-greater-Orlando-area-making-an-investment-in-short-term-rental-communities.html

reAlpha expands it's global footprint, opening India office. This office assists with digital marketing, financial services, and accounting services, and is currently looking to add members to its team of 10.

“We opened our Bengaluru office to better serve our global customers and investors. We have built a team that is bright and agile, and can manage our massive growth opportunities. We plan to scale significantly in the near future for various roles including AI specialists, finance professionals, and digital marketing teams. We’re excited to see what’s next.”  

“What we are really excited about at reAlpha is the dynamic culture. We feel that we have created an energy that transcends geographic and cultural boundaries, and believe that is the most powerful thing a young company like us can have. I am eager to bring more skills, perspectives, and ideas to the table as we continue to expand our team in India and across the globe.”

‍https://www.globenewswire.com/en/news-release/2022/02/01/2376794/0/en/reAlpha-Continues-to-Grow-Rapidly-Expanding-Its-First-Office-in-Bengaluru-India.html

reAlpha makes strategic investment in Brazilian design agency, Carthagos. reAlpha has taken 25% equity in Carthagos, and reAlpha’s Chief Marketing Officer, Christie Currie, will join Carthagos’ board of directors. The partnership will help reAlpha continue to differentiate and establish itself as a leader in the emerging real estate crowdfunding and short-term rental industries. Carthagos brings a wealth of experience from their global team in branding, UX design, app development, and marketing strategies.

“From the start of reAlpha, we have always asked ‘who’ before ‘how.’ In a short period of time, we have been able to identify top talent across the world, including Carthagos. Our investment in them will allow us to continue to elevate our brand and UX experiences in-house while also cultivating Carthagos’ own growth in parallel with reAlpha’s. Between reAlpha’s expertise and scale, the development team of Naamche, and Carthagos’ design acumen, we have essentially created our own end-to-end product studio. We’re completely unstoppable.”  

“Working side by side with reAlpha and their ambitious leadership team is a huge opportunity for Carthagos. This investment not only aligns our companies, but it will be the foundation for the creation of new ideas, products and partnerships in coming years,”

“Having already worked with more than 30 American clients, this partnership opens up a new chapter for our business as reAlpha helps us set up Carthagos as a truly American corporation.”

‍https://www.globenewswire.com/en/news-release/2021/09/02/2291006/0/en/reAlpha-announces-new-partnership-with-Carthagos.html

reAlpha makes strategic investment in AI development partner, Naamche. reAlpha has taken 25% equity in Naamche and reAlpha’s Chief Financial Officer, Mike Logozzo, will join Naamche’s board of directors. This partnership is intended to dramatically impact reAlpha's technology development capability. reAlpha will work with Naamche to continue to develop the reAlpha app and syndication platform, the reAlphaBRAIN, as well as pursue many other identified opportunities to innovate within the emerging $1.2 Trillion short-term rental industry.

“reAlpha's relationship with Naamche allows reAlpha to remain agile and pivot development at a moment's notice. Naamche has also had the opportunity to expand its horizons with challenging projects through reAlpha's global network of top performing organizations across 14 countries.”

We’re thrilled to have reAlpha as a partner in Naamche,”

“We’re looking forward to continuing to partner with the reAlpha network and to having Mike Logozzo join us on our board of directors. This investment will enable Naamche to grow and continue to solve difficult problems for our clients, helping scale their businesses, while we scale the technology that fuels it.”

‍https://www.globenewswire.com/en/news-release/2021/08/24/2285602/0/en/ReAlpha-announces-new-partnership-with-Naamche.html

Crawford hoying, a multi-billion-dollar real estate holding company in the midwest was the lead investor in reAlpha's $6 Million seed funding round. The new funding will accelerate reAlpha's growth, including investment in its platform, data science function and engineering capabilities. Additionally, the proceeds will be used towards expanding its geographical presence, operations, and future user base.

“reAlpha’s data-driven approach is a paradigm shift for the short-term rental investment market. The proprietary technology developed to identify, acquire, and market properties with lower risk is a big leap. We strongly believe in the team’s conviction and vision to scale this into a leader in this space.”

“reAlpha enables superior alpha yield by investing in short-term rental properties. We have simplified the entire process of investing and managing these properties using advanced technologies. This allows ‘Mainstreet’ investors to access the real estate investment market like never before,”

“We’re looking forward to continuing to partner with the reAlpha network and to having Mike Logozzo join us on our board of directors. This investment will enable Naamche to grow and continue to solve difficult problems for our clients, helping scale their businesses, while we scale the technology that fuels it.”

https://www.globenewswire.com/en/news-release/2021/08/04/2274600/0/en/Crawford-Hoying-invests-6-Million-in-reAlpha-to-Accelerate-Growth-in-the-1-2-Trillion-Short-Term-Rental-Market.html

reAlpha is proud to announce our new partnership with Title First Agency, one of the largest independent title agencies in the nation. The partnership with Title First will allow reAlpha to simplify and streamline its large-scale property acquisition process.The partnership will give reAlpha the ability to scale with one vendor under a customized process that will benefit each client at the local level throughout the transaction and will create efficiencies so that reAlpha can achieve their national and global growth strategies. The partnership is another step in reAlpha’s quest to modernize and democratize the real estate investing process.
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“As reAlpha built our ecosystem to execute at a very large scale, we sought partners that have both a strategic fit to our business model, as well as a cultural fit to our corporate values. The Title First team checks both boxes,”

“As we start purchasing a large number of properties, their vast expertise in the title space provides a valuable consultancy and their vast network provides a seamless service to all transactions. They are a trusted partner and considered as an extension of our team.”  

“Title First is very excited to partner with reAlpha and its forward-thinking executive team. We have followed the short-term rental markets nationally and believe the potential for reAlpha’s specific business model is compelling,”

“We look forward to maximizing our expertise to help reAlpha achieve its growth goals in this expanding market.”