Urban Green Investments
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.”
Jasmine Nazari, Partner, Head of Investor Relations
Urban Green Investments was an early adopter of online commercial real estate fundraising and quickly recognized it as a way to grow their investor base. After testing a different fundraising platform, they became one of CrowdStreet’s first loyal clients.
The company was conservative, however, in its expectations for capital raised in a crowdfunded environment. “We hadn’t seen a big return with our prior online fundraising engagement and expected a similar result with CrowdStreet.”
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.”
“For me as a Sponsor, it’s been helpful to see what sort of marketing strategies are working for CrowdStreet. There’s no central source of knowledge about how to navigate private equity real estate and definitely nothing that’s Investor Relations oriented. I appreciate the information CrowdStreet is sharing with us as a partner.”
Wellbrook, Urban Green’s third project on the platform, “…raised a pretty penny with CrowdStreet,” according to Nazari. “We are definitely looking for the next deal that’s a match for their marketplace.”
Urban Green Investments, a fully integrated real estate investment and development company, has been a Sponsor in the Bay Area since 2008. The company invests in three major platforms: multi-family, land development and boutique office buildings. It’s primary market focus is in CA, NY and TX, investing directly in projects and also working with a variety of partners including local Sponsors, institutional funds and accredited investors.