$10 Million in 80 Minutes: CrowdStreet Quickly Raises Equity in $60 Million Real Estate Project

Real estate crowdfunding platform CrowdStreet has shared some interesting news.

According to the platform, sponsor J.Jeffers & Co. raised $10 million on CrowdStreet in just 80 minutes.

In total, $14 million was raised in a day ($16.7 million in total offers were submitted).

This is the largest and fastest individual offering ever for CrowdStreet. While it is hard to tell if it is a record nationally it certainly is a fast turnaround for a good sized project.

The investment offer was for a building in Milwaukee, Wisconsin. The Huron Building is an 11 story “Class A” office with 163,000 square feet of space. The total value of the structure was pegged at $60 million with 39$ million coming from a construction loan and the rest from equity investments including the $14 million provided by 400+ investors from CrowdStreet. The offering has a targeted return of an IRR of 22.1%

The developer, Joshua Jeffers President and CEO of Jeffers & Co, had this to say about the crowdfunding round:

“Towards the end of the webinar on CrowdStreet, just as we were opening it up for questions, we glanced at the screen and realized we had already raised $10 million. It was incredible. I expected we might raise $7 million or $8 million after several weeks of marketing. In one day we reached $14 million, and commitments were still coming in. We ultimately had to cut it off at $16.7 million in offers.”

Jeffers added that deals like this have not changed much in the last 50 to 60 years – until now. Crowdfunding platforms and the utilization of the internet and tech is radically changing how the process works.

“Traditional real estate fundraising connections have typically been built from direct mail, and a lot of lunches, dinners, golf, and presentations,” said Jeffers. “What’s really amazing about this crowdfunding platform is it’s still fundamentally the same thing. It’s still connecting a sponsor with a pool of accredited investors, but in a much more efficient way.”

CrowdStreet operates an online marketplace for direct equity investment in commercial and multifamily real estate.

As of March 2019, individuals had invested more than $525 million in deals on CrowdStreet, representing approximately $11.9 billion of property value.

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