CaliberCos (previously Caliber)

CaliberCos (previously Caliber)

Growth Stage

Real estate investments that make alternative access simple

Real estate investments that make alternative access simple

Overview

Funding data not publicly available
Platform

Self Managed

Start Date

05/09/2023

Close Date

05/17/2023

Min. Goal
$2
Max. Goal
$4,000,000
Min. Investment

$2

Security Type

Equity - Common

Series

Series B

SEC Filing Type

RegA+    Open SEC Filing

Price Per Share

$2.12

Pre-Money Valuation

$43,100,000

Year Founded

2019

Industry

Real Estate & Construction

Tech Sector

Proptech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

High

Location

Scottsdale, Arizona

Business Type

Growth

CaliberCos, with a valuation of $43.1 million, is raising funds independently through Reg A+ crowdfunding. The company provides residential, commercial, and hospitality real estate investments to individuals. It uses a vertically-integrated business model of acquisition, development, construction, asset management, and disposition. CaliberCos currently manages assets worth $745.5 million and has 2,460 multifamily units, 2,300 single-family units, 2.5 million square feet of commercial and industrial space, and 1.3 million square feet of office and retail space under development. Chris Loeffler and Jennifer Schrader founded CaliberCos in 2009. The current crowdfunding campaign has a maximum target of $4 million. The campaign proceeds will be used for working capital, operating expenses, and capital expenditures.

Balance Sheet

Cash and Cash Equivalents

$1,921,000

Investment Securities

$0

Total Investments

$0

Accounts and Notes Receivable

$0

Loans

$0

Property, Plant and Equipment (PP&E)

$0

Property and Equipment

$0

Total Assets

$278,834,000

Accounts Payable & Accrued Liabilities

$201,645,000

Policy Liabilities and Accruals

$0

Deposits

$0

Long Term Debt

$0

Total Liabilities

$201,645,000

Total Stockholders' Equity

$77,189,000

Total Liabilities and Equity

$278,834,000

Statement of Comprehensive Income Information

Total Revenues

$83,956,000

Total Interest Income

$178,000

Costs & Expenses Applicable to Rev

$0

Total Interest Expenses

$-1,055,000

Depreciation and Amortization

$35,000

Net Income

$1,873,000

Earnings Per Share - Basic

$0.11

Earnings Per Share - Diluted

$0.11

Financials as of: 05/09/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
CaliberCos (previously Caliber) 05/16/2023 Self Managed $43,100,000 - Equity - Common Funded RegA+
Caliber 03/06/2021 SeedInvest $130,000,000 $10,750,452 Equity - Preferred Funded RegA+
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Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Employee History

Funding data not publicly available

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Analyst Report

Synopsis

Real estate investments have long been considered a lucrative asset class, but access to these opportunities has traditionally been limited to wealthy investors or institutions. Caliber provides individuals with access to sophisticated private real estate investments. Caliber offers a vertically-integrated business model that encompasses acquisition, development, construction, and asset management. The company currently has $2.5 billion in assets under management and assets under development.

Caliber operates in the middle-market real estate sector with the goal of making real estate investing simple and accessible to a wider range of investors. Through the platform, individuals can invest in a company that manages all aspects of the real estate investment process, allowing them to diversify their portfolios and potentially generate attractive returns.

Caliber's unique value proposition lies in its ability to provide individuals with access to real estate investments that were previously reserved for wealthy investors or institutions. By leveraging their vertically-integrated business model and expertise in the middle-market real estate sector, Caliber aims to democratize real estate investing and offer attractive investment opportunities to a broader audience.

Next Section: Price

Price

Caliber is valued at $43.1 million. This valuation seems reasonable given the company's strong financial performance and track record. Caliber has $2.5 billion in assets under management and has been in operation for 14 years, demonstrating a successful operations cycle.

When considering the valuation in relation to revenue, Caliber has a low revenue multiple of 0.51. This suggests that the company's valuation is not overly inflated relative to its annual revenue of $83,956,000. Additionally, Caliber has achieved strong annual revenue growth of 49.80%, indicating a positive trajectory for the business.

Overall, Caliber appears to be reasonably valued based on its financial performance and market position. The company's strong track record, high revenue growth, and absence of long-term debt contribute to its favorable price rating.

Next Section: Market

Market

Caliber operates in the real estate asset management and consulting market. The US market for real estate asset management and consulting is estimated to be worth approximately $97.9 billion. The market is driven by growing populations and urbanization trends, which create a demand for various types of commercial spaces, including apartments, hotels, and retail properties. Cities with expanding populations tend to experience increased demand for real estate assets.

The commercial real estate market, however, has certain risks. Economic downturns or uncertainty can negatively impact commercial real estate demand, leading to reduced leasing activity and declining property values. Additionally, the shift to remote work, accelerated by the COVID-19 pandemic, has raised concerns about the long-term demand for office spaces. Some businesses may continue to downsize their physical footprint or adopt a hybrid work model, affecting office space requirements.

Similarly, traditional brick-and-mortar retail has faced challenges due to the growth of e-commerce. Many retail properties have experienced vacancies and reduced foot traffic, particularly in less desirable locations. Finally, increasing interest rates can raise borrowing costs for developers and investors, potentially slowing down new construction and property acquisitions. That said, Caliber appears to be mitigating these risks well, as evident by the historic returns and impressive track record.

Next Section: Team

Team

Caliber was co-founded by CEO Chris Loeffler and President/COO Jennifer Schrader. Prior to founding the company, Loeffler built and remains co-owner of Salmon Falls Resort, a fishing resort in Alaska. He holds a degree in Business Administration from California Polytechnic State University-San Luis Obispo. Schrader, on the other hand, brings decades of experience to the table as a real estate broker. The two have a strong combination of entrepreneurial and industry acumen within commercial real estate. With a total of 74 team members, the company has the resources and expertise to execute its growth strategy effectively. The founding team has demonstrated its ability to attract and retain talent.

Overall, the Caliber team, led by experienced and dedicated founders, is well-positioned to capitalize on the growth opportunities in the real estate asset management and consulting market.

Next Section: Differentiation

Differentiation

Caliber operates in the competitive real estate asset management and consulting industry. While there are established competitors in the market, Caliber has managed to differentiate itself through several key factors.

Firstly, Caliber boasts an impressive track record with $2.5 billion in assets under management, 14 years of operations cycle testing, and a 17.7% internal rate of return (IRR). These figures demonstrate the company's experience and success in delivering profitable investments to its clients. Additionally, Caliber has generated a total profit of $71,752,270, further highlighting its ability to generate returns for investors.

Caliber differentiates itself by offering individuals access to sophisticated, private real estate investments that have traditionally been reserved for wealthy investors or institutions. By providing middle-market real estate investment opportunities, Caliber opens up a previously exclusive market to a wider range of investors. This value propositions not entirely unique, but paired with the traction is a standout offering.

Furthermore, Caliber follows a vertically-integrated business model that encompasses acquisition, development, construction, and asset management. This comprehensive approach allows Caliber to have greater control over the entire investment process, ensuring quality and efficiency throughout.

Caliber faces competition from platforms like CrowdStreet, EquityMultiple, Cadre, and Fundrise. While these competitors operate in a similar space, Caliber differentiates itself through its proven track record, extensive experience, and focus on middle-market real estate investments.

Overall, Caliber has successfully differentiated itself in the real estate asset management and consulting industry through its impressive track record, unique value proposition, vertically-integrated business model, and ability to provide access to previously exclusive investment opportunities.

Next Section: Performance

Performance

CaliberCos, previously known as Caliber, has demonstrated strong performance in the real estate and construction industry. With $2.5 billion in assets under management, the company has established itself as a leader in alternative asset management services, specifically focusing on middle-market real estate investments. CaliberCos follows a vertically-integrated business model that encompasses acquisition, development, construction, asset management, and disposition.

The company has achieved notable financial success, with $71,752,270 in total profit and a 17.7% internal rate of return (IRR). CaliberCos has been profitable for one year and has experienced significant revenue growth, with annual revenue reaching $83,956,000. This represents a growth rate of 49.8% since the last reporting period. The company's strong financial performance is a testament to its effective management and successful execution of its business model.

CaliberCos has a diverse portfolio of real estate assets under management. Currently, the company manages assets worth $745.5 million, including 2,460 multifamily units, 2,300 single-family units, 2.5 million square feet of commercial and industrial space, and 1.3 million square feet of office and retail space under development. This diversified portfolio allows CaliberCos to mitigate risk and capture opportunities across various segments of the real estate market.

Furthermore, CaliberCos has established partnerships with top hotel brands, including Hilton, Marriott, and IHG, through licensing agreements that run for 10-20 years. These partnerships enhance the company's offerings in the hospitality sector and contribute to its overall growth and revenue streams.

While CaliberCos has achieved significant success, it is important to note that the company is still in a growth stage and faces moderate competition in the industry. Additionally, the company's cash and cash equivalents position of $1,921,000 indicates a healthy financial position to support its ongoing operations and future growth initiatives.

In conclusion, CaliberCos has demonstrated strong financial performance, profitability, and asset growth in the real estate and construction industry. With its vertically-integrated business model and strategic partnerships, the company is well-positioned for continued growth and success in the market.

Next Section: Risk

Risk

While CaliberCos has a strong presence in the real estate asset management and consulting industry, there are some risks associated with this investment opportunity. One risk is the highly competitive landscape in which CaliberCos operates. The company faces competition from other real estate funds, specialized funds, hedge fund sponsors, financial institutions, private equity funds, and corporate buyers. This competitive environment may impact CaliberCos' ability to attract and retain clients, potentially affecting its revenue growth.

Another risk to consider is the high barriers to entry in the industry. Although CaliberCos has established itself as a recognized leader in the space, new entrants could emerge and disrupt the market. These competitors may offer innovative solutions or have better access to capital, which could negatively impact CaliberCos' market share and profitability.

Additionally, CaliberCos relies on licensing agreements with top hotel brands such as Hilton, Marriott, and IHG. The duration of these agreements ranges from 10 to 20 years. If these licensing agreements are not renewed or if the terms change unfavorably, it could impact CaliberCos' ability to generate revenue from its hospitality real estate projects.

Furthermore, the real estate industry is subject to market fluctuations and economic downturns. Changes in interest rates, housing market conditions, and general economic conditions can affect the demand for real estate investments and impact CaliberCos' financial performance.

Lastly, CaliberCos has a monthly burn rate of $119,833.33, which indicates ongoing expenses that need to be covered. If the company is unable to generate sufficient revenue or secure additional funding, it may face financial challenges that could impact its operations and growth trajectory.

Overall, while CaliberCos has shown promising growth and profitability, investors should carefully consider the competitive landscape, barriers to entry, reliance on licensing agreements, market volatility, and ongoing expenses when evaluating the investment opportunity.

Next Section: Bullish Outlook

Bullish Outlook

CaliberCos is well-positioned in the real estate industry, offering individuals access to private real estate investments that were traditionally limited to wealthy investors or institutions. The company's vertically-integrated business model allows it to effectively manage all aspects of real estate projects, from acquisition and development to construction and sales. With a diverse portfolio of assets under management, including multifamily units, single-family units, commercial and industrial space, and office and retail space, CaliberCos has established itself as a leader in the industry.

The company's strong financial performance is evident in its impressive annual revenue growth of 49.8%. CaliberCos generated $83.9 million in revenue, demonstrating its ability to deliver attractive returns to investors. Additionally, the company maintains a healthy cash position of $1.9 million, providing stability and flexibility for future growth initiatives.

CaliberCos has strategic partnerships with top hotel brands such as Hilton, Marriott, and IHG, through licensing agreements that extend for 10-20 years. These partnerships enhance the company's offerings and create additional revenue streams.

CaliberCos has established itself as a competitive player. The company's comprehensive approach, coupled with its strong track record, positions it favorably for continued growth and success in the market.

Next Section: Bearish Outlook

Bearish Outlook

Caliber operates in a highly competitive industry with numerous indirect and direct competitors. The company faces competition from real estate funds, specialized funds, hedge fund sponsors, financial institutions, private equity funds, and corporate buyers. It also competes with platforms like CrowdStreet, EquityMultiple, Cadre, and Fundrise. With such a crowded landscape, Caliber may struggle to differentiate itself and capture market share. Furthermore, the company's net income is -$1.4 million, raising concerns about the company's ability to generate sustainable profits and deliver returns to investors.

Commercial real estate also comes with inherent risks including economic uncertainty, remote work, retail challenges, and rising interest rates. Economic downturns or uncertainty can lead to reduced demand and declining property values. The shift to remote work, accelerated by the COVID-19 pandemic, has raised concerns about the long-term demand for office spaces, potentially affecting office space requirements. Traditional brick-and-mortar retail has faced challenges due to the growth of e-commerce, leading to vacancies and reduced foot traffic. Rising interest rates can increase borrowing costs, potentially slowing down new construction and property acquisitions. These trends pose challenges for investors, developers, and property owners in the commercial real estate sector.

Overall, Caliber operates in a competitive industry and may face financial challenges and market risks. These factors contribute to a bearish outlook for the company. Investors should carefully evaluate the risks associated with investing in Caliber before making any investment decisions.

Next Section: Executive Summary

Executive Summary

Caliber is a real estate asset management and consulting company that provides individuals with access to private real estate investments, focusing on commercial and middle-market properties. The company follows a vertically-integrated business model, handling all aspects of the investment process from acquisition to asset management. Caliber has a strong track record, with 14 years of operations cycle testing and $2.5 billion in assets under management. The company has achieved a 17.7% internal rate of return (IRR) and generated $71,752,270 in total profit.

Caliber is currently raising funds through a Reg A+ crowdfunding campaign, with a maximum target of $4 million. The proceeds from the campaign will be used for working capital, operating expenses, and capital expenditures. The company saw annual revenue of $83,956,000 for 2022 with a year-over-year growth rate of 49.80%.

Overall, Caliber is a growth-oriented company with a solid foundation in the real estate industry. While it faces intense competition and challenges, its successful track record and strong performance make it an attractive investment opportunity.

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CaliberCos IPO 2023
Platform: Self Managed
Security Type: Equity - Common
Valuation: $43,100,000
Price per Share: $2.12

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