Oregon, US-based 'Fix and Flip' site Gorilla Capital has received a debt facility from Arena Investors to facilitate its growth.
The company says it will will utilize the proceeds from the facility to continue expanding its business operations and acquisition strategy. Terms of the transaction have not been disclosed.
Castle Placement, a leading provider of private equity and debt capital placement services, was the exclusive placement agent on the transaction.
Gorilla CEO John Helmick says the company will expand its operations in the 23 states it currently operates plus add more markets.
"Our goal is to grow to $400 million sales in three years," Helmick says
He adds Gorilla's ability to expand and enter new markets has been limited by the amount of capital available.
"With this investment and the financial backing of Arena, Gorilla has the ability to expand its business nationwide and to increase the number of homes it buys in current markets," he says.
Every day, Gorilla purchases distressed, abandoned, run-down homes and remodels them. Once "up to the standard" of a specific neighborhood, the company sells the homes to buyers who move in with the desire of becoming part of the neighborhood.
"Watching the process as a rundown, abandoned home is transformed into an amazing home is incredibly satisfying," Helmick says.
"We want to expand to every real estate market where there are distressed, vacant homes, homes that we refer to as zombie homes.
"Our objective is to renovate those zombie homes and make them into wonderful homes that are attractive to today's home buyers."
www.gorillacapital.com is a constantly evolving real estate company that buys, remodels, and sells roughly 400 homes a year nationwide across a wide spectrum of markets.
With an emphasis in acquiring distressed real estate, over 75 per cent of the homes we purchase are vacant; we love being actively engaged in the revitalization of our local neighborhoods.