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 The xIRR is a way of calculating the IRR for a series of cash flows that may not be periodic by assigning specific dates to each individual cash flow. xIRR is a complicated calculation done in Excel or other financial modeling software. The main benefit of using the XIRR Excel function is that these unevenly timed cash flows can be... More and 1.6x average realized 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 (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 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/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.