Pinnacle Storage Properties, a Houston-based firm that operates more than 10 self-storage facilities in Texas, intends to list more than $100 million in storage assets on Earn.re, a blockchain platform for commercial real estate financing designed to connect lenders and accredited investors directly with project sponsors. Pinnacle will also be a sponsor, according to the source.
Earn.re began “off-platform” capitalization nine months ago and is expected to begin live trading during the third quarter. It’s powered by an Ethereum public blockchain, according to its website. “Qualified investors are able to acquire both equity and debt shares in vetted development projects represented by ERC1400-compliant security tokens,” according to information posted on the site. “Solidity coded smart contracts ensure fast, secure and accurate distribution of funds, dividends and payments.”
The Pinnacle portfolio totals more than 1 million square feet of self-storage. “We are pleased to have secured the commitment of an experienced sponsor with a strong track record of success and increasing momentum,” Aaron Lohmann, CEO of Earn.re, told the source.
The platform will offer equity and debt-investment opportunities. Earn.re will generate security tokens that reflect an investor’s fractional ownership stake verified within the blockchain. Each token will automatically compute and distribute returns to investors’ private cryptocurrency accounts. Earn Debt and Earn Equity tokens will be moveable on the Earn.re exchange, similar to how stocks and bonds are traded, the source reported.
Pinnacle’s involvement in Earn.re comes on the heels of the company hiring Kurt Power as vice president of investor relations. It’s a privately held real estate owner and operator focused on the acquisition, development and management of self-storage assets. Its investment strategy is to purchase under-leveraged properties in suburban and secondary markets. Its portfolio spans 20 properties comprising more than 1.1 million rentable square feet, according to its website.
Earn.re will offer securities backed by several property types including government, hospitality, industrial, multi-family, retail and self-storage, the source reported.
GlobeSt.com, Pinnacle Storage to List $100M of Assets on New Blockchain Platform