KBSDirect Debuts $1 Billion No-Load Real Estate Fund on CrowdStreet

Real estate crowdfunding platform CrowdStreet announced on Thursday U.S. commercial real estate company KBS has launched a new $1 billion “no load” and no upfront commission growth and income properties fund on its marketplace. According to CrowdStreet, the KBS Growth & Investment Fund was launched in beta last October through KBSDirect’s website and is the first offering in KBS’ 26-year history in which investors are able to directly buy shares online.

KBS has notably increased the size of the fund to $1 billion and is now offering it on the CrowdStreet Marketplace, thus opening the opportunity to an even larger pool of investors who may have been interested in investing in institutional commercial real estate, but sought a smaller minimum investment amount and a desire to spread their investments across a growing portfolio of professionally managed assets. While sharing details about the fund, Peter Bren, Chairman of KBS Realty Advisors and KBS Capital Advisors, stated:

“Commercial real estate investing is going through a dramatic transformation. For individual investors and the trusted advisors who serve them, real estate investing is moving from a fee-laden, high-load broker/dealer environment to one where online platforms support institutional-quality investments and aligned interests among the investor, the advisor and the fund, with lower fees, commissions and administrative costs.”

CrowdStreet CEO, Tore Steen, also commented:

“This trend of direct investing through online platforms is delivering strong returns with greater transparency to investors nationwide. Our platform is on the leading edge of this trend. We enable top-tier commercial real estate firms, like KBS, to effectively take institutional investing online, both through their own branded channel, as well as using the additional channel of our Marketplace, which is experiencing 3x annual growth.”

The KBS Growth & Income Fund currently owns four assets totaling $197.8 million in gross value. These are the following:

  • The Offices at Greenhouse, a 203,221 SF Class A office building in Houston, TX
  • The Commonwealth, a 219,742 SF Class A office building in Portland, OR
  • Von Karman Tech Center, a 101,161 SF Class B office building located in Irvine, CA
  • 213 W. Institute, a 157,166 SF Class B office property in Chicago, IL

Lew Feldman, President of KBSDirect, added:

“Launching the KBS Growth & Income Fund on the CrowdStreet Marketplace is an important part of our omnichannel marketing strategy to reach registered investment advisors, accredited investors and their financial advisors. It enables us to take advantage of new, proven distribution opportunities, while serving the real estate investment needs of the modern investor. CrowdStreet’s technology platform has enabled us to effectively incorporate an online function to communicate the legacy brand of KBS through content and education, to onboard and communicate with investors and registered investment advisors in a pleasant and secure user experience, to reach new distribution channels for no load and no commission KBS real estate investments, and to drive operational savings and economies of scale that will inure to the benefit of the investor and the advisor.”

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