Crowdfunding boosts $8.7 million industrial real estate deal
Chicago-based Brennan Investment Group found an unusual way to raise money to purchase the Jackson Industrial Park on the Far Eastside — crowdfunding.
The method often used by nonprofits, artists and musicians raised $1 million for the $8.7 million purchase.
Brennan used startup crowdfunding firm Realty Mogul.
Realty Mogul’s investors pool money through a digital collection system to buy shares of real estate investments, including apartment buildings, offices, industrial parks, self-storage centers, medical offices, retail centers and mobile home parks.
Brennan will manage the Jackson Industrial Park, a 260,400-square-foot industrial complex with a mix of small and large tenants. The industrial park is 77 percent occupied.
Brennan, which had not worked with a crowdfunding company before, credited Realty Mogul for helping to make the deal happen. Realty Mogul’s investors will see a return through a share of the rental income.
Call Star reporter Chris Sikich at (317) 444-6036. Follow him on Twitter: @ChrisSikich.