CrowdStreet Crosses $500 Million Invested Online in Commercial Real Estate Deals

In March, CrowdStreet crossed the $500 million threshold in total online investments with a record number of new individual investors.

CrowdStreet, Inc., a technology provider with an online marketplace for direct equity investment in commercial real estate (CRE), today announced that in March it crossed the $500 million threshold in total online investments with a record number of new individual investors.  The news accompanies a record quarter with over $75 million invested.

Breakdown of Recent Results:

  • Q1 ended with more than $525 million invested on the CrowdStreet Marketplace since inception (April 2014-March 2019)
  • Approximately $11.9 billion of property value transacting through the Marketplace since inception
  • Fastest fundraise – one sponsor raised over $4 million in offers in just over an hour
  • The inaugural fund of the CrowdStreet Blended Portfolio raised over $9 million from 198 investors in two months
  • Investment performance – 12 realized offerings on CrowdStreet to date have generated a 31.7% average XIRR and 1.6x average realized equity multiple (April 2014-March 2019)*

The company also recently expanded its leadership team with the appointment of Gaylyn Sher-Jan as chief people officer, Brent Hieggelke as chief marketing officer and Tony Lai as vice president of customer success to support the company’s rapid expansion. Sher-Jan will be focused on organizational development and human resource optimization, Hieggelke is focused on expanding the company’s fast-growing investor base and expanding the brand, and Lai is focused on ensuring an optimal experience for the sponsors/developers launching offerings on the Marketplace.

“Crossing over the $500 million mark is a significant milestone that clearly demonstrates that online investing in commercial real estate is here to stay,” said Tore C. Steen, CEO of CrowdStreet.  “Investors on CrowdStreet can now choose between directly investing in a variety of commercial real estate asset types, investing in a diversified portfolio of Marketplace assets by making one investment in the CrowdStreet Blended Portfolio, or getting personalized advice with our Private Managed Accounts service.”

The quarter also included CrowdStreet supporting Motley Fool’s new real estate investment advisory service launch:

“Motley Fool has launched a new subscription service called Mogul, by Millionacres that focuses on real estate investing,” said Austin Smith, director of Millionacres.  “This service discusses and presents subscribers with real estate investment opportunities that include some commercial real estate offerings from the CrowdStreet Marketplace.”

Winner of the 2019 “Rising Star” Category in the annual Oregon Technology Awards, CrowdStreet’s technology helps investors gain access to investment opportunities outside of the traditional avenues of the stock market, which may allow them to diversify their investment portfolios and better distribute risk, while fundamentally transforming real estate investing through technology.  CrowdStreet is helping to create a community where individual investors and CRE firms can work together to maximize wealth through commercial real estate.

Sponsors who raised capital on the CrowdStreet marketplace in the quarter included Feldman Equities, KBS, and Driftwood Hospitality.  Through both its Marketplace and software solutions, more than 112,000 investors, along with 275 commercial real estate operators and developers, are currently on the CrowdStreet platform.

*Results are based on realized transactions to date, based on information provided to CrowdStreet by the sponsors of the investment or other sources.  Due to the fact that CrowdStreet was formed in 2014 and many investments have an expected holding period that is longer than the period during which CrowdStreet has been in existence, the information above may not be an accurate representation of overall performance of investments on the Marketplace.  Furthermore, if a project is not performing well, realization may be delayed. Past performance is not indicative of future results. You should not invest unless you can sustain the risk of full loss of capital.


Related content >

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.