Crowdfunding platform launches $20M Opportunity Zone fund

CrowdStreet says it will focus on “up-and-coming metro areas”

TRD NATIONAL /
September 09, 2019 12:43 PM
CrowdStreet CEO Tore Steen and vice president Darren Powderly (Credit: CrowdStreet and iStock)

CrowdStreet CEO Tore Steen and vice president Darren Powderly (Credit: CrowdStreet and iStock)

A crowdfunding platform is piling into Opportunity Zones.

CrowdStreet is launching a $20 million fund that will target new developments and redevelopments in small and mid-market designated Opportunity Zones, the Oregon-based firm said Monday.

The firm did not specify in which cities it is looking to place investor capital. However, the targets do not appear to be major gateway markets.

“These markets are up-and-coming metro areas with population and job growth rates that, in many cases, are outpacing larger 24-hour cities such as New York and San Francisco,” said CrowdStreet’s Ian Formigle in a statement.

The fund will be managed through CrowdStreet Advisors, the company’s registered investment advisory service that administers real estate investments for its clients.

Numerous Opportunity Zone-related funds have popped up over the last year and a half, seeking to capitalize on the program that provides long-term investors significant tax benefits for pouring capital into designated regions, most of which are distressed.

Starwood Capital Group and Brookfield Asset Management are among the firms that also launched massive Opportunity Zone funds for projects across the country.

CrowdStreet said it also has raised equity on its marketplace for six projects located in Opportunity Zones. Since its launch in 2014, the firm said it has crowdfunded $700 million in capital through its platform for real estate projects across the country.


Related Article

arrow_forward_ios
CrowdStreet CEO Tore Steen and vice president Darren Powderly (Credit: CrowdStreet and iStock)

Crowdfunding platform launches $20M Opportunity Zone fund

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Bank OZK CEO and Chair George Gleason (Illustration by Chris Koehler)

Trouble in the land of OZK: Why NYC’s most important construction lender may be on shaky ground

Secretary of the Department of Housing and Urban Development Ben Carson (Credit: Getty Images and iStock)

“Rich people are going to get richer anyway”: HUD Secretary Ben Carson dismisses concerns that Opportunity Zones will only benefit rich people

arrow_forward_ios