Encore Enterprises, Inc.
CrowdStreet has investor reach like no one else! They excel in attracting high-quality investors and know how to get our offers in front of the right people.
Mark Avis, Sr Vice President of Corporate Affairs
The Challenge
Finding an Automated Approach
With tax season quickly approaching, the annual task of preparing and distributing more than 500 K1 statements to active investors was imminent. Rather than spend another season burning the midnight oil stuffing envelopes, the Encore Investors Relations team envisioned a more automated approach to communicating with investors and distributing the documents.
At the same time, the Encore Acquisitions team was looking to expand their high net worth investor network. Previously, their investor base was a smaller group with deep relationships that grew mostly through word of mouth. Their growth goals would most efficiently be achieved through new investors coming to Encore through a broader means.
Encore had two trial runs with real estate investment crowdfunding that ended with lackluster results. They were paying monthly fees for services that didn’t bring the success (or investors) they wanted, and didn’t offer the operational benefits they hoped would support a growing base of investors.
Disappointed with these outcomes, they searched for something better: a sophisticated approach to real estate investments that would accomplish their objectives to broaden their investor pool and modernize operations. The CrowdStreet Marketplace and CrowdStreet Sponsor Direct solutions were incredibly appealing, and already demonstrating success in the market.
CrowdStreet has investor reach like no one else! They excel in attracting high-quality investors and know how to get our offers in front of the right people.
Mark Avis, Sr Vice President of Corporate Affairs
The Results
Fundraising Success
“Right out of the gate we saw success”, claimed Mark Avis, Sr Vice President of Corporate Affairs with Encore. The Phoenix Multifamily project offered in the Marketplace led to raising $10.5 million through a combination of their own investors and the CrowdStreet member community. The single, unified technology platform also brought the operational ease they were seeking.
“The Marketplace helped us get our offerings in front of accredited investors we wouldn’t have access to otherwise”, said Brandon Burns, Senior Managing Director. “We were impressed with the savvy investors who were eager to develop relationships and invest in multiple Encore offerings.”
CrowdStreet Sponsor Direct significantly contributed to Encore’s operational capabilities. “With more than 1,500 Investor Rooms, we love the ease of communicating important information and critical documents with all our investors, in a streamlined way, directly from our own website” said Lindsey Knodle, Investor Relations Manager. “Our investors know exactly where to go to find everything they need – a private, secure, and custom branded investor portal accessed directly from Encore’s website . Our capacity to communicate has increased in meaningful ways.”
Leveraging the full suite of Integrated Tools within Sponsor Direct has also contributed to their fundraising success. The Transaction Center allows Encore to expedite funding timelines by automating many of the steps to closing. The Publishing Platform makes publishing new offerings on the Encore private portal and Marketplace straightforward and effective.
Bonus
A Supportive Base
As an enterprise client with more than 30 projects and a large investor base, customer support was an important detail for Encore in choosing CrowdStreet. “They’ve gone above and beyond to help us succeed in every way,” said Brandon.
According to Lindsey, the “CrowdStreet technology makes managing all of the data, records, projects and investors incredibly easy for me. Going into this, I didn’t realize how unique our approach to working with investors was. The CrowdStreet team has been very responsive and supportive with all of our requests. I know they really care.”
About Encore
Encore Enterprises, Inc. is a commercial real estate investment firm located in Dallas, Texas with a broad portfolio of multifamily, hospitality, office and retail single assets and funds. Encore historically funds their projects through a combination of discretionary funds, institutional capital, and an established network of over 500 high-net worth investors located across the U.S. Since the company’s formation in 1999, Encore has completed over $2.4 billion in transaction volume with a focus on the Southern, Eastern, and Midwestern United States.