Once one of the most respected real estate investment platforms in the US, PeerStreet has now filed for bankruptcy.
According to a corporate statement, PeerStreet aims to sell substantially all of its assets, including its mortgage loan assets, and tech platform. The company seeks to maximize the value for its shareholders.
PeerStreet was launched in 2013, serving accredited investors interested in participating in the real estate marketplace – an asset class historically difficult to access by smaller investors.
PeerStreet was selected three times as one of Deloittes’ Fast 500 – a list of the fastest-growing tech firms in the US. PeerStreet had reported more than $3.5 billion in short-term, fixed-rate, first-lien real estate loans.
In 2022, PeerStreet published a performance update on its platform that revealed a promising outlook in a difficult market during a “wild year.” But, over time, the fast-rising interest rates were simply too much for the young firm.
Chatter indicates that some investors may be having difficulty in withdrawing funds remaining on the platform.
PeerStreet filed for protection under Chapter 11 in the United States Bankruptcy Court for the District of Delaware on June 26, 2023.
