ATLANTA and INDIANAPOLIS, April 19,
2021 /PRNewswire/ -- GROUNDFLOOR, a wealthtech platform
that allows everyone to build wealth through real estate, and
PadSplit, a mission-driven marketplace that helps solve the
affordable housing crisis, are teaming up in a new partnership that
will create hundreds of new affordable housing units. The two
Atlanta-based companies operate as
real estate marketplaces, though they have traditionally served
different audiences. This unique partnership unites the companies
together for the first time, alongside real estate developer White
Hawk LLC, which is utilizing GROUNDFLOOR's lending services to
renovate 36 homes that will all serve as PadSplits. As a result of
the partnership, hundreds of individuals will be able to find safe,
clean, and affordable housing in the Indianapolis metro area.
"This partnership allows PadSplit to enter new markets more
quickly and efficiently, alongside property owners like White Hawk
who already understand the benefits of our model," said Atticus
LeBlanc, PadSplit's founder and CEO. "The biggest beneficiaries of
this partnership are lower income individuals in Indianapolis, who will now be able to access
quality affordable housing, close to job centers, and achieve more
financial independence. We've always admired GROUNDFLOOR's ability
to increase housing density in cities and are excited to finally
work with them."
For GROUNDFLOOR, the partnership reflects the wealthtech
platform's rapid growth since the company launched in 2013 as the
first company qualified by the Securities and Exchange Commission
to offer real estate debt investments to accredited and
non-accredited investors alike. In 2020, the platform saw record
growth in investor activity in Q2 and Q3, which is continuing in
2021, with nearly $43M in volume
year-to-date. On the lending side of its marketplace, GROUNDFLOOR
has originated almost 2,000 loans since inception.
The partnership with PadSplit also underscores GROUNDFLOOR's
growing emphasis on social impact projects. In January, the company
announced a new accessory dwelling unit (ADU) pilot program to
increase housing density and reduce gentrification in Atlanta. These homes in Indianapolis will soon be available on
GROUNDFLOOR's platform, so its more than 90,000 investors can
participate in supporting these renovations, and ultimately help to
create more affordable housing.
"We see first-hand how housing supply continues to be
constrained in the markets we serve, making it even more difficult
to find housing for those who need it most," said Brian Dally, GROUNDFLOOR's co-founder and CEO.
"We're excited to be able to team up with PadSplit in this effort
to create more affordable housing, while also allowing our
investors the opportunity to invest in projects with positive
social impact outcomes. It's a win-win-win."
Individuals who are looking for affordable housing through
PadSplit will be able to move into some units by the end of April,
with additional rooms becoming available as renovations are
completed. PadSplit's marketplace provides shared housing – with
private, furnished bedrooms, and fixed utility costs as well as
access to 24/7 telehealth services and job matching. PadSplit
members average $25,000 in annual
income and report $420 in monthly
savings between housing, utility, and transportation costs. Each
PadSplit home must meet specific design guidelines designed to
exceed HUD standards, while members must pass a criminal background
check and screening process to qualify.
Both GROUNDFLOOR and PadSplit are headquartered in Atlanta and originally proved their models out
in the state of Georgia. To date,
GROUNDFLOOR has raised $26.8M in
equity capital and PadSplit has raised $14.6M. Both companies have been recognized as
two of the most innovative startups in Georgia.
For more information on how to invest in these projects, or to
finance loans, visit GROUNDFLOOR.com. For more information on how
to become a PadSplit property owner, or to see available housing,
visit PadSplit.com.
About GROUNDFLOOR
Founded in 2013, GROUNDFLOOR is an
award-winning wealthtech platform that allows everyone to build
wealth through real estate. GROUNDFLOOR was the first company
qualified by the U.S. Securities & Exchange Commission to offer
direct real estate debt investments via Regulation A for
non-accredited and accredited investors alike. Today, it remains
the only product offering everyone the ability to build fully
customizable real estate debt portfolios for short-term, high-yield
returns. Headquartered in Atlanta,
GROUNDFLOOR has won numerous awards for its rapid growth and
innovation including the Inc 500 and Deloitte's Technology Fast
500. To date, GROUNDFLOOR has raised $26.8
million in equity capital from a variety of sources,
including venture capital and online public equity offerings. As of
its most recent round of financing, the company is 26 percent
customer-owned.
About PadSplit
PadSplit is a mission-driven company
that helps to solve the affordable housing crisis, one room at a
time. Through its shared-housing model, the company aligns
incentives between cities, nonprofits, and property owners to spur
cost-effective housing creation without public subsidy, all while
providing safe and affordable housing for working class
individuals. PadSplit was founded by an affordable housing advocate
and is advised by a team of nationally recognized housing leaders
and investors including Enterprise Community Partners, the UC
Berkeley Terner Center for Housing Innovation, Kapor, Impact
Engine, and the Citi Impact Fund amongst others. Headquartered in
Atlanta, PadSplit operates in
several cities throughout the United
States, including Atlanta,
Houston, Richmond, Tampa and Indianapolis. For more information about the
company or how to become a member or property owner, visit
PadSplit.com.
MEDIA CONTACT:
Hela Sheth
GROUNDFLOOR
hela@katalystcomms.com
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SOURCE Groundfloor Finance Inc.