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 In commercial real estate, the sponsor is an individual or company in charge of finding, acquiring and managing the real estate property on behalf of the partnership. The sponsor is usually expected to invest anywhere from 5-20% of the total required equity capital. They are then responsible for raising the remaining funds and acquiring and managing the investment property’s day-to-day... More.
“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 The Internal Rate of Return (IRR) is the rate at which each invested dollar is projected to grow for each period it is invested. It differs from other metrics in that it accounts for the concept of the “time value of money”, or the fact that a dollar received and reinvested elsewhere today is worth more than a dollar expected... More* and a 1.60x In commercial real estate, the equity multiple is defined as the total cash distributions received from an investment, divided by the total equity invested. Essentially, it’s how much money an investor could make on their initial investment. An equity multiple less than 1.0x means you are getting back less cash than you invested. An equity multiple greater than 1.0x means... More 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.