Real Estate Investment Platform CrowdStreet Tops $500 Million in Direct Equity Investment

CrowdStreet, a real estate investment platform providing direct equity investments for investors in commercial real estate (CRE), has surpassed $500 milion in aggregate online investment. The milestone comes following a record quarter for the platform where over $75 million was raised and the number of individual investors jumped.

CrowdStreet’s tech 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.

Tore C. Steen, CEO of CrowdStreet, said crossing the $500 million mark is significant, demonstrating that online investing in commercial real estate is here to stay:

“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.”

CrowdStreet provided the following metrics:

  • 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)

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.

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

Austin Smith, director of Millionacres, said the service called Mogul by Millionacres presents subscribers with “real estate investment opportunities that include some commercial real estate offerings from the CrowdStreet Marketplace.”

CrowdStreet 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.

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