CrowdStreet, Ranked #1 in Landmark Crowdfunding Marketplace Study, Exceeds $2 Billion Raised for 500+ Real Estate Projects Valued at over $20 Billion
Austin, Texas, July 14, 2021 / PRNewswire / – CrowdStreet, Inc. (“CrowdStreet”), the award-winning online real estate investment marketplace, announced today that it has sold more than $ 2 billion Over 500 real estate transactions, including single asset projects and funds, collected from individual investors via the CrowdStreet marketplace. Based on the dollars invested by individual investors, the company has been recognized as a leader in online commercial real estate marketplaces by Adam Gower Ph.D., an industry authority and author of the recently published book Real Estate Crowdfunding Unleashed. The book documents the growth of online syndication and crowdfunding market activity based on millions of data points collected by the SEC.
The more than $ 2 billion milestone comes as 2020 has proven to be the most successful year ever for CrowdStreet, with individuals investing more than $ 641 million in the platform, almost three times more than 2019 (229 + million US dollars) and is almost 12 times more than five years ago (49+ million US dollars). May 2021 was the company’s best month ever, with $ 142 million invested on the platform.
Investors on CrowdStreet have now funded more than 500 deals in 39 states (including Washington, DC) over 14 asset classes and 24 asset types. The average deal value (total project capitalization) has increased from almost $ 20 million in 2014 to $ 78 million so far in 2021, which reflects CrowdStreet’s focus on institutional quality real estate. The total market capitalization of all deals on the CrowdStreet platform since launch is $ 20.9 billion. CrowdStreet investors have more than $ 220 million in distributions from project sponsors, with 54 fully realized deals so far.
“We have proven the concept, have become industry leaders, and are growing rapidly due to the multiplier effect as more sponsors bring us more diverse and larger deals and quickly become the target of investing in real estate projects across the CrowdStreet platform $ 2 billion mark for Investments is an important milestone, not only for CrowdStreet, but for the entire real estate industry. As real estate sponsors continue to move their fundraising activities online and more and more investors expect and develop more online investment options, we are providing the perfect place for these worlds to come together, “said Gates C. Steen, CEO of CrowdStreet.
Find out more about the first 500 deals and investor behavior
- The average equity increase (per project) on CrowdStreet rose to almost $ 7 million in 2020 compared to $ 4.5 million in 2019 and $ 2.2 million in 2018.
- The biggest equity increase to date was $ 34.5 million.
- The top condition for deals is Texas, with 92 offers and $ 340 million collected for projects in the country.
- Investors in California invested most in deals with $ 384 million invested by people in the state.
- The average investment amount by private investors is $ 134,000, with the amount increasing steadily from year to year. 59% of investors are repeat investors who invest roughly on average $ 250,000.
- The most popular asset class (as a percentage of the total number of deals) are apartment buildings.
- Other niche asset types on the platform included a charter school, cannabis fund, and data centers.
CrowdStreet takes the lead through raised money
In the first study of its kind, Real Estate Crowdfunding Unleashed, Dr. Adam Gower examines how real estate crowdfunding has come of age.
Gower has followed the crowdfunding market since its inception and examined over a million data points from the SEC to illustrate how crowdfunding has become mainstream in private equity real estate financing by making it much more efficient and easier for sponsors to raise equity for Procure projects. and to give the average investor access to an asset class that in the past was reserved for the privileged few.
Gower discovered that in just seven years since the JOBS Act was promulgated in 2012, crowdfunding accounts for nearly 25 percent of all private equity capital raises for commercial real estate in America, with crowdfunding deals being reached $ 15 billion in 2020 (from $ 7 billion in 2019), an all-time high
Out of any marketplaces specializing in commercial real estate, CrowdStreet stood out for Gower as the industry leader and largest market based on the dollars raised in its marketplace. “CrowdStreet is a milestone for the industry and the first online marketplace for commercial real estate investments $ 2 billion in equity from individual investors, “said Gower.” This is an exceptional achievement for an industry only seven years old and for a company that is ‘only’ $ 200 million four years ago.”
Online investing is becoming the standard
“As someone who has invested in real estate transactions of all kinds, the CrowdStreet approach has become my marketplace of choice for a number of reasons including: the company’s sponsor screening process, diverse deal flows across all types of regions and asset types, and more generally “I like that I can start with a small investment as I meet a sponsor and build confidence to grow later, while at the same time expanding my portfolio to a range of actual physical property. Projects,” said Vipanj Patel, an investor at CrowdStreet and a former venture capitalist. “I’m not at all surprised that ‘crowdfunding’ is well on its way to overtaking traditional syndication, and that CrowdStreet is leading that shift given its valuation practices, extensive industry expertise and track record.”
Aim for property sponsors in raising equity
New and seasoned sponsors are turning to CrowdStreet to raise capital, expand their direct networks and relationships with investors, and improve the efficiency and consistency of their investor relations. “Online syndication is now something we deliberately consider part of the capital stack for any deal,” said David B. Pollin, Co-Founder and President of the Buccini / Pollin Group. “The industry has come a long way since the JOBS Act, largely thanks to CrowdStreet, which continues to focus on creating a platform for institutional property sponsors and individual investors to come together. But while the industry has come a long way, the industry is still in the early stages of scaling to its full potential for online fundraising and investing. ”
CrowdStreet operates an award-winning online real estate investment marketplace that provides investors with access to institutional quality real estate offerings by combining in-depth real estate investing knowledge with an advanced platform that provides the simplicity and convenience of online investing. Some of the world’s largest sponsors, including Greystar and Harbor Group International, have used CrowdStreet to raise capital. More information is available at www.crowdstreet.com.
The information contained herein or presented here does not constitute a recommendation or solicitation to subscribe for, buy or sell any securities or offers, including, but not limited to, offers that may invest in the geographic region (s) or type of investment (cf. ) mentioned herein, regardless of whether such an offer is published on the CrowdStreet marketplace or not. While CrowdStreet believes that the information contained and compiled herein has been obtained from sources believed to be reliable, CrowdStreet makes no guarantee, warranties or representations about it. All forecasts, opinions, assumptions or estimates used serve only as examples and do not reflect the current or future performance of the item. All projections, projections and estimates of returns or future performance and other “forward-looking” information that are not purely historical in nature are based on assumptions that are unlikely to correspond to actual events or conditions and from which they could differ materially. Such forward-looking information only illustrates hypothetical results made under certain assumptions.
CrowdStreet, Inc. (“CrowdStreet”) is not a registered broker-dealer or investment advisor. Nothing herein should be construed as an offer, recommendation or solicitation to buy or sell any security or investment product issued by CrowdStreet or otherwise. This press release is not intended to be intended as advice to any investor or prospective investor and does not address the investment objectives, financial situation or needs of any investor. All investments involve risk, including the possible loss of the money you invested, and past performance is not a guarantee of future performance. All investors should, in consultation with a professional adviser of their choice, consider these factors in determining whether an investment is appropriate.
Melissa Hourigan (National)
Cary Brazeman (Property)
CRELIX marketing partner
1 Unleashed, Dr. Adam Gower, June 2021
SOURCE CrowdStreet, Inc.