Despite the economic turbulence swirling around Coronavirus chaos, Arizona- based real estate investment firm Caliber is forging a path forward and opens investing to the public for the first time in its 12-year history, which in short order has already attracted more than $600,000 in new capital.
Company co-founders Chris Loeffler and Jennifer Schrader in February made a presentation and soft rollout of the raise to investors, local dignitaries and other stakeholders, but went all-in once their online portal was ready to accommodate investor transactions. At the same time, as the scale of the current health crisis took shape, Caliber proactively donated excess hotel room capacity from its portfolio to assist frontline medical teams and began to assess current and future real estate holdings.
“It may seem counter-intuitive to continue with the offering with all the unrelated events happening in our community, but that is exactly when smart investors move forward,” Loeffler says. “Remember that Caliber was born out of the uncertainty and calamity of the 2008-09 crash, and as painful as it was, we are also proud that we were able to build wealth for our customers while saving properties and helping rebuild neighborhoods along the way.”
The company’s track record:
• After 12 years in business, Caliber now manages more than $440 million in fair value assets and an estimated $550 million in assets under development across the Southwest.
• Launched one of the first Opportunity Zone funds in the nation.
• Base of Accredited Investors, or high net worth individuals, has doubled since 2016 – from 371 to more than 800 – with an average per client investment of $520,000.
• Aggregate net capital raised for its funds increased at an average annual rate of 39 percent – from $29 million to $144 million – during the five-year period ending Dec. 31, 2018.
• Six consecutive years on the Inc 500/5000 List of Fastest-Growing Private Companies in America. Previous six-time honorees include Microsoft, Timberland, Vizio, Intuit, Chobani, Oracle and Patagonia.
• Asset base has grown 186 percent during past four years.
• Raised $14 million through three previous rounds of private funding from 200 shareholders over a five-year period.
The offering also marks the first time that non-accredited investors have been able to invest in Caliber, which creates an opportunity for many more investors. In the past, only accredited individuals earning more than $200,000 per year ($300,000 for couples) with a net worth exceeding $1 million, could invest. In this current round, the minimum investment is just $2,000 or 500 shares.
“We have democratized the process and opened up Caliber to the wider investing public, providing access to sophisticated private real estate investments that have been traditionally reserved for institutions and wealthy investors,” Loeffler says. “By investing in Caliber, you’re investing in the engine that services projects in Arizona, Texas, Nevada, Utah, Colorado, all the areas within the growing Southwest.”
Current Caliber projects include:
• The redevelopment of a 96-bed behavioral health facility in Phoenix occupied by Medical Behavioral Hospital of Phoenix, an Opportunity Zone project.
• The redevelopment of nine historic mixed-use buildings in downtown Mesa adjacent to light rail and ASU’s new campus, an Opportunity Zone project.
• The Ridge I & II, a new 300-plus-acre master-planned development north of Denver offering residential, multi-family, industrial, medical office and retail projects.
• A new Hilton Doubletree Hotel at the Tucson Convention Center, projected to be completed in January 2021, an Opportunity Zone project.
• Among others, including commercial, residential, mixed-use, self-storage and hospitality.
With the new investment option, the public can help write the next chapter of Caliber’s growth story, a true Arizona original. For additional information and for a complete prospectus, visit InvestCaliber.com.