Arrived Homes, a real estate crowdfunded investment platform allowing ownership of single-family rental properties, today announced its expansion into short-term vacation rentals, according to a press release.
The company also stated plans to expand its offerings, which allow everyday people to buy shares in real estate starting at $100, to new markets in Florida, Texas, Nevada, and Indiana.
Now it will also extend its investment horizon to vacation rentals, saying it is “democratizing” access to rental income and property appreciation across real estate asset classes in the country.
Arrived will also host “the #ArrivedGetaway” to give investors an opportunity to win shares, trips and five nights at a property in which they partially own.
It has announced five rental properties, valued at $5 million, that will be part of this expansion. These include The Mirage in Joshua Tree, California; The Oasis located in Nashville, Tennessee; The Cardinal in Glendale and The Ace in Scottsdale, Arizona; The Hammock and The Pointbreak in Panama City and Clearwater, Florida; The Orchard in Blue Ridge, Georgia.
GeekWire reports all the shares for the vacation rental in Nashville got sold out on the first day of trading on Wednesday. Approximately 100,000 people signed up for the service and around 10,000 users actively investing on the platform, with 200-300 investors per house on average.
According to Arrived Homes, the rentals will have amenities like hot tubs, rooftops with views of the downtown, and close proximity to cultural and entertainment hubs.
“We are excited to bring our model to vacation rentals, the fastest growing real estate segment right now”, stated Ryan Frazier, CEO & co-founder of the organization, in the release.
Frazier explains Arrived Homes’ property ownership strategy helps Americans access financial benefits from their investments. According to him, Airbnb enables vacation rental owners to generate rental incomes of more than $150 billion from providing services to one billion guests. However, less than 0.5% of these guests could access the income potential from these assets. “We’re changing that today by adding these assets to our platform,” he added.
For this enterprise, Arrived partnered with vacation rental property managers and developers, including Tony Robinson and Alpha Geek Capital team, Misfit Homes, Old Town Rental, Roseus Hospitality, Southern Comfort Cabin Rentals, and Techvestor.
These partnerships will oversee the management of the properties, eliminating the involvement of the investors themselves in daily operations of the rentals. Moreover the managers will use local hosting experience, teams and recognition from their social media followers on various platforms to handle operations.
The release also stated investors will be able to buy shares on the Arrived website, as well as other established vacation rental property platforms.
The company’s move shortly follows its funding from a $25M Series A round, led by Forerunner Ventures. Other participants in the round included Bezos Expeditions, Good Friends, former Zilliow CEO Spencer Rascoff, Core Innovation Capital, PSL Ventures and Neo. From June 2021, it also received a seed funding and debt financing valued at $37 million and announced its partnership with Certain Lending to lead a $100M credit financing program to expand into the U.S. residential real estate market, in December 2021.
Arrived Homes’ says it has now funded over 150 single-family rental properties in 27 markets in the U.S., with a combined total asset value over $55 million.
In other recent proptech news, Berkadia, a joint commercial real estate venture between Berkshire Hathaway and Jefferies Financial Group, signed a multiyear agreement with rental data reporting fintech Esusu. Walker & Dunlop, Inc., a commercial real estate service provider, expanded its affordable housing platform with a new investment sales team to help clients “create, preserve and revitalize affordable communities.”