Selequity, Virtual Realty Find Synergy

One year after its launch, Selequity has a new partnership intended to take the crowd investing platform to a new level.

A.J. Chivetta, Selequity

Just one year after its launch, Selequity has formed a vital partnership that will take the online platform for crowd investing in commercial real estate to a new level. The company just joined forces with Virtual Realty Enterprises L.L.C., a commercial real estate lender and operating firm, in a strategic alliance that opens the door for Selequity’s clients and project sponsors to new options for interim financing and the funding of larger and more diverse deals, respectively.

There’s a certain synergy between Selequity, which boasts the former CEO and former CFO of commercial real estate services firm Cassidy Turley (now DTZ) as two of its co-founders, and VRE, a company that has managed half-a-billion in assets over the last 20 years.

“We are two St. Louis-based real estate companies with many connections in common,” AJ Chivetta, CEO of Selequity, told Commercial Property Executive. “Selequity is opportunistic in growing our business and looking for companies who want to grow their business. VRE is a creative and successful group, and we believe this alliance is a perfect addition to what Selequity can provide to commercial real estate sponsors.”

Selequity introduces accredited investors to private real estate deals, while introducing commercial real estate owners to the company’s vast network of investors. VRE comes to the table as a senior, junior and mezzanine lender, and will consider projects–including endeavors in the office, retail, multi-family and hospitality sectors–identified by Selequity for consideration.

Selequity’s alliance with VRE is just the beginning; the company plans to take the online crowdfunding industry by storm.

Chivetta added, “We have seen online private placements of commercial real estate become a game-changer. If you look at the Masssolution research report, online real estate transactions have gone from more than $1 billion in 2014 to a projected $2.5 billion this year. Because of what Selequity brings to the commercial real estate marketplace in experience, knowledge and connections, we believe we will be able to shape and capture a significant share of this new industry.”

Recently, Selequity wrapped up its first funding during its closed beta phase, having raised roughly $2.6 million of equity for a Class A neighborhood shopping center in the company’s hometown. “This is only one type of transaction with which Selequity can assist, and there are many others,” Chivetta said.

Selequity presently has two other projects during its beta phase and expects general public offerings on its site by summer’s end.