Enjoying CrowdStreet’s “Workability”
Flash forward to today, when Urban Green has raised over $2.3M on the CrowdStreet marketplace across three offerings. Burnside, a vertical construction project in Portland, OR, promised an annualized return of 20%, but instead resulted in an incredible 50% yield for investors. “We doubled our annual return within 20 months,” said Nazari.
Right after they closed the raise with their own invrestors and CrowdStreet, the terms of Urban Green’s loan changed. “We went back to CrowdStreet to raise a little more capital and make this deal happen. There was what I like to call ‘workability’ there. The CrowdStreet team quickly came through.”
CrowdStreet was also able to remove the Investor Relationship burden that bringing in new investors can often create. Nazari explains, “During our initial deal, CrowdStreet told us, ‘You’re going to get investors wrapped in a nice little bow. We do all the due diligence.’ I thought, ‘How will this company be able to answer investors’ questions? How could they know this deal?’ To our surprise, they delivered.” Doing so made raising capital with CrowdStreet pencil out with an attractive cost of capital.
“The CrowdStreet marketplace is also operationally efficient at this check size. If I go out to investors one-by-one, it’s an inefficient use of my time. The CrowdStreet platform is a one-stop-shop platform that’s as powerful as we want to make it.”
CrowdStreet also provides the kind of flexibility that allows Urban Green to make decisions that were best for their business, as compared to the inflexibility an institution with a big check can bring. Nazari shares, “Working with CrowdStreet versus an institutional raise could not be more different. We’re a very agile and lean company, and with CrowdStreet, we can do what needs to get done with no unnecessary rules or constraints.”