RealtyMogul: Northwest Crossing Offering

The real estate investment platform RealtyMogul launched an offering for a single-family housing development in Bozeman, Montana. 

The Northwest Crossing offering is an equity investment in the construction and selling of 155 single-family homes in one of the most robust growth markets in the country. With a mix of attached and detached homes, the development is expected to begin in early 2023 with the first units delivered in February 2024. 

Bozeman’s single-family housing market rose 10% year over year from December 2021 to December 2022. This substantial increase in single-family home ownership reflects the growing supply and demand imbalance that development sponsor Williams Homes seeks to take advantage of. Single-family home demand is being driven by multiple factors, including job growth and Montana State University, the largest university in the state.  

Bozeman is also experiencing economic growth since becoming a technology hub, which accounts for over $3 billion in annual revenue. Additionally, the state’s fourth-largest city by population has an affluent economic base with average salaries being 60% higher than the average state earnings. All of these positive economic factors are driving the demand for home ownership in the area. 

Williams Homes is the largest homebuilder by unit volume in Montana. The homebuilder is contributing 20% of the equity to the project as a sign of its confidence and commitment to Northwest Crossing. Founded in 1996, Williams Homes’ primary focus is on the development and sale of single-family homes in communities targeted to entry-level, move-up and luxury homebuyers in the Western United States. 

As a repeat sponsor with RealtyMogul, the firm intends to replicate the success of prior offerings as well as its historical track record. Over the company’s 26-year history, it’s had more than 2,500 deliveries at a sales value of nearly $1.4 billion and an average 23% annualized return to its investors. Williams Homes’ current assets under management include over 3,300 homes with a completed value of approximately $2.2 billion.

RealtyMogul will host a live webinar on the Northwest Crossing development at 3 p.m. on Feb. 22.

• Minimum investment: $35,000
• Target internal rate of return (IRR): 27.9%
• Target equity multiple: 1.5x
• Target investment term: three years

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Photo courtesy of RealtyMogul