CrowdStreet Marketplace Crosses $1 Billion Invested

We're excited to announce that our platform crossed $1 billion in total online investments and investors have received more than $100 million in returns.

CrowdStreet is excited to announce that our platform crossed the $1 billion milestone in total online investments by individual investors.

Also, investors on CrowdStreet have received more than $100 million in returns since the Marketplace launched in 2014, as reported by sponsors.

“It’s exciting to see CrowdStreet hit this milestone but not surprising at all.  Savvy investors are quickly figuring out that diversifying and investing in commercial real estate makes sense and what CrowdStreet offers in terms of deal flow, insight into the offerings, and ease of investment and tracking is the best option available today,” said David J. Fishman, a repeat Marketplace investor in New York City.

In six years, CrowdStreet has created a community where more than 80,000 investors and 193 real estate operators and developers have had the opportunity to fund commercial real estate projects across a wide variety of asset types, from multifamily to office to industrial. 2019 proved to be a record year for CrowdStreet with $511 million invested through the platform into 111 offerings, which was more than the prior five years combined. $58 million in distributions was returned to investors in the year as well, more than double the total amount distributed back to investors on the platform since 2014. 

Other key milestones and metrics include: 

  • The largest equity raise ever on the CrowdStreet Marketplace 
  • More than $50 million invested in the first five CrowdStreet Blended Portfolio Series 
  • More than $13.7 billion worth of real estate assets have been launched in the Marketplace
  • 23 realized offerings with a dollar-weighted average realized return of 30 IRR* and a 1.60x equity multiple on a 2.1 year holding period

“Crossing the $1 billion mark for equity invested is a significant milestone for CrowdStreet and for the commercial real estate industry overall. As real estate sponsors continue to move their fundraising operations and investment management activities online, and as more investors expect more online investing options, supply and demand are feeding off of each other. As sponsors allocate more investment opportunities to CrowdStreet, and more investors select to participate in the deals, even more sponsors see the value in bringing their deals to the Marketplace. It’s a virtuous cycle that’s resulted in CrowdStreet having one of the largest and most diverse online Marketplaces for developers and operators to raise capital, and for individual investors to diversify their investment portfolios,” said Tore C. Steen, CEO of CrowdStreet. 

The average funding amount for a deal on the Marketplace has grown exponentially. Some of the top deals of 2019 include: 

  • 425 investors committed $27 million within a few hours ($1 million every 4.5 minutes) on the platform for an office-to-residential redevelopment of a 208K SF 12-story office tower in Alexandria, Va. sponsored by D.C. real estate investment firm PRP.
  • 436 investors committed $25 million within a few hours ($1 million every 7 minutes) for an Opportunity Zone redevelopment in Atlanta. The project was sponsored by Parkway Property Investments, LLC.
  • 407 investors invested $14 million overnight for a new 163,000-square-foot office building in downtown Milwaukee, sponsored by J. Jeffers & Co. 
  • 200 investors invested more than $10 million for the redevelopment of a historic downtown Chicago property into a dual-branded hotel, with a 135-room Hilton Garden Inn and a 214-room Canopy by Hilton, sponsored by Phoenix Development Partners.

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This article was written by an employee of CrowdStreet, Inc. (“CrowdStreet”) and has been prepared solely for informational purposes. The information contained herein or presented herewith is not a recommendation of, or solicitation for, the subscription, purchase or sale of any security or offering, including but not limited to any offering which may invest in the geographic area(s) or asset type(s) mentioned herein, whether or not such offering is posted on the CrowdStreet Marketplace. Though CrowdStreet believes the information contained and compiled herein has been obtained from sources believed to be reliable, CrowdStreet makes no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the subject thereof. All projections, forecasts, and estimates of returns or future performance, and other “forward-looking” information not purely historical in nature are based on assumptions, which are unlikely to be consistent with, and may differ materially from, actual events or conditions. Such forward-looking information only illustrates hypothetical results under certain assumptions.

CrowdStreet is not a registered broker-dealer or investment adviser.  Nothing herein should be construed as an offer, recommendation, or solicitation to buy or sell any security or investment product issued by CrowdStreet or otherwise. This article is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.