Atlanta-based startups GROUNDFLOOR and PadSplit team up to create more affordable housing

The two real-estate focused marketplaces form unique partnership to bring hundreds of new affordable housing units into Indianapolis, before expanding to other markets

News provided by

Groundfloor Finance Inc.

Apr 19, 2021, 08:22 ET

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
[email protected]

SOURCE Groundfloor Finance Inc.