We were looking for something that worked how we work, we loved the ease of use for ourselves and investors…CrowdStreet Connect was the best product for us.
Jeffery Rosenberg, Managing Partner
Finding a platform that “works like we work”
Big V Property Group (BVPG) owns and operates 36 class B grocery and anchored neighborhood and community shopping centers totaling 4 million square feet in the Southeastern U.S. To manage its investor base, BVPG implemented a complex investment management platform from IMS. When, after a short time, they ran into data flow issues and other limitations, it was time to find an alternative that better met the company’s needs.
“Online fundraising gives you greater flexibility with your assets and how you decide to manage them.”
Managing Partner Jeffrey Rosenberg investigated multiple investment management software providers. His search led to CrowdStreet Connect. The idea of a simple investment management platform combined with the leading online fundraising marketplace provided a solution that was impossible to ignore.
“We were looking for something that worked how we work,” commented Rosenberg. “We loved the ease of use for ourselves and investors. In fact, we had several of our investors look at the platform and provide their feedback. We looked at how waterfall calculations and how the platform handled multiple investments across different types of properties. CrowdStreet Connect was the best product for us.”
3X oversubscribed on the CrowdStreet marketplace
Rosenberg, who oversees leasing and investor relations for the company, says the company uses the platform to connect with its long-time investor pool. Today, that investor pool includes a new crop: those who have taken part in BVPG’s offerings on the CrowdStreet Marketplace.
In May 2018, BVPG’s Lexington Town Center project closed on the Marketplace having exceeded its initial $1 million fundraising goal by 50%, for a total of $1.5 million.
Rosenberg states that BVPG was pleasantly surprised at the outcome. “I wasn’t sure the platform would be successful for us. We thought, ‘Let’s try it, but also make sure we have the backup resources in place.’”
The move paid off not only with Lexington Town Center, but also with several other deals on the Marketplace. Two of which closed in the summer of 2018, both also oversubscribed. Future offerings are already in the pipeline and the company has already seen CrowdStreet investors coming back for repeat investments.
Great Connection, Greater Control
Rosenberg says a key plus for raising capital via an online real estate investment platform is lighter reporting burden and greater control.
“We’ve had joint ventures with several firms and funds,” he elaborates. “The amount of monthly reporting is significant. They like to help with decisions, which can be a good thing. But it can be limiting and onerous regarding the resources required.
Another benefit for Rosenberg is the opportunity to connect directly with investors.
“I like speaking directly with investors,” he comments. “We’re always looking at ways to grow. These investors bring ideas that are diverse and beneficial. We’re in this to create long-term wealth for people. The CrowdStreet connection allows me to share our philosophy and how we run our business.”
Big V Property Group (BVPG) is a vertically-integrated shopping center investment management and property management company, with comprehensive services including leasing, on-site property management, construction management, finance/accounting and marketing. The company has offices in Charlotte, NC, Florida, NY, and Bristol, TN and a satellite office in Stuart, FL.
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This graph shows possible returns based on index data from three sources - future returns will be different. CrowdStreet does not guarantee returns. "Bonds" returns are based on historical annual returns of the Bloomberg Barclays US Aggregate Bond, "S&P 500" returns are based on historical annual returns of the Standard & Poor's 500. "CRE Index" returns are based on historical annual returns of the "NCREIF Property Index."
Prudent investment strategies almost always involve a component of diversification. Failure to diversify an investment portfolio properly across a range of asset classes generally results in an increased risk of the loss of capital. Typical investment portfolios for individual investors contain only a small allocation to commercial real estate (“CRE”) holdings as an asset class, as well as a limited inclusion of private placements and/or illiquid securities. The opportunities offered on the CrowdStreet Marketplace are generally both CRE and illiquid private placements, and as such are often double restricted in prudent asset allocations. Further, the opportunities on the Marketplace typically represent a specific subset of CRE opportunities available to investors when compared to the real estate asset class as a whole. Therefore, no investor should rely on CrowdStreet Advisors Private Managed Accounts as the sole, or even majority, of their overall investment portfolio. Rather, investors should rely on CrowdStreet Advisors Private Managed Accounts as a component of a broadly diversified portfolio that includes other asset classes and liquid securities not currently available through CrowdStreet Advisors.