CrowdStreet hits $1B milestone, crowdfunding firm claims

Last year the company raised over $500M for 111 project offerings on its site

TRD NATIONAL /
Feb.February 19, 2020 06:00 PM
CrowdStreet CEO Tore Steen (Credit: iStock)

CrowdStreet CEO Tore Steen (Credit: iStock)

CrowdStreet said it has raised over $1 billion for commercial real estate deals through its online crowdfunding platform.

The milestone comes as the crowdfunding industry continues to mature, with some startups falling away and others facing troubles with underperforming assets.

Crowdstreet offers several tools to allow people to invest in commercial real estate, an industry that historically requires deep pockets to get into. CrowdStreet’s online marketplace launched in 2014, and the Oregon-based firms says it has over 80,000 investors and 193 operators and developers that have used it.

In 2019, the company raised over $500 million for 111 offerings, it said. One of the projects funded through the platform was Phoenix Development Partners’ 349-room dual-branded Hilton in downtown Chicago. For that deal, 200 investors poured in more than $10 million for the building’s redevelopment, according to CrowdStreet.

CrowdStreet last year also locked down $12 million in Series C financing, upping its total fundraising to $25 million.

A bevy of crowdfunding companies came on the scene around 2013, when a shift in U.S. securities law made it possible to expand crowdfunding for certain types of investments. For commercial real estate, the change was seen at the time as a way to make the investment class more accessible to a bigger pool of investors.

The wave of startups attracted venture capital financing that has since tapered. Some companies, like Fundrise, in the years since have shifted their models away from crowdfunding. Others, like the popular platform RealtyShares, stopped operating.

And another platform, Prodigy Network, which raised money for its own developments, faces investor lawsuits over mismanagement of funds.

Write to Mary Diduch at [email protected]


Related Articles

arrow_forward_ios
Shoma Group CEO Masoud Shojaee and a rendering of Ten30 South Beach

Shoma nabs $18M construction loan for condos near Lincoln Road

Rendering of Wynwood 28 and Laurent Morali 

Kushner lands $18M loan for Wynwood projects

Matt Rieger and a rendering of Paradise Lake Apartments

Developer scores financing for West Kendall affordable housing project

Wynwood 25 and Wynwood Annex with Jon Paul Perez and Jonathon Yormak (Credit: East End Capital/Related Group)

Related, East End score $136M refi of Wynwood projects

These real estate power players are involved in 2019’s juiciest lawsuits (Credit: Getty Images)

Here are South Florida’s juiciest lawsuits of 2019

Best of TRD 2019 promo

Coming soon: The Real Deal’s Best of 2019

Madison Realty Capital'a Josh Zegen and Fort Partners' Nadim Ashi  

Four Seasons in Fort Lauderdale scores $210M loan

Daily Digest Miami

South Florida home sales struggle in October, Cipriani and Terra plan luxury condo

arrow_forward_ios
Loading...