CrowdStreet Expands Leadership Team

Fall is underway, school is starting, and we’re entering the latter half of Q3 2021. All eyes are on the economy as unemployment benefits lapse in most states and Democrat plans for a multi-trillion dollar rebuilding and revitalization bill remain in limbo.

But you’re here for one reason – to see how things are going in the real estate crowdfunding world – so let’s get on with it.

New Crowdfunding Platform Deals

CrowdStreet has a new offering on deck, the Pinto Business Park Industrial Development, which is a 282,000+ SF cross-dock distribution facility development within a high-growth submarket just outside of Houston, Texas. This industrial property has a targeted investor IRR of 15.3%, a targeted equity multiple of 1.5x, a targeted average cash yield of 1.8%, and a targeted investment period of 3 years. CrowdStreet will be hosting a live webinar and Q&A session for the project on Thursday, September 9 at 10:00 AM PT.

Moving on to the FreeUp Storage DFW Portfolio offered over at RealtyMogul. This project, sponsored by Spartan Investment Group, is a 14-property portfolio with 18 total locations and 4 satellite facilities representing more than 740,000 SF of non-climate controlled and climate controlled storage spread out over a total of 5,046 units. Additionally, this Dallas Fort Worth and East Texas portfolio includes 45,000 SF of warehouses, 3,200 SF of office space, and 534 parking units. Learn more about the FreeUp DFW Storage Portfolio at RealtyMogul, here.

RealtyMogul will also be hosting a webinar for The Bentley Apartments on Wed, Sep 8, 2021 between 11:00 AM – 12:00 PM PDT. This multifamily project was completed in 2020 and consists of 138 multifamily units with significant and resilient cash flow in picturesque Grove City, OH, a rapidly growing suburb that sits outside of Columbus. If you’re interested in attending the webinar or making a pledge for this suburban multifamily project, click here.

General Crowdfunding Industry News

Austin-based CrowdStreet recently announced the expansion of their senior leadership team with the naming of three new senior executives. These additions were brought on to help the firm drive growth in the commercial real estate investing marketplace in which the company operates.

The new executives include a new CFO, Genni Combes, Kristen Howell as General Counsel and Chief Compliance Officer, and finally, Sheldon Chang as the Vice President of Investment and Wealth Solutions. These hires bring a wealth of experience across sectors, from real estate to investment/wealth management, to private and public equity markets. Tore Steen, Chief Executive Officer of CrowdStreet, remarked on the appointment of the new executives:

“We have seen tremendous growth over the past few years, even during the pandemic, as investor demand for our commercial real estate investing opportunities has increased exponentially. Our expanded team makes CrowdStreet even more strongly positioned to scale while meeting the needs of both commercial real estate professionals and investors.”

Read more about the appointments at PR Newswire, here.

Crowdfunding Platform Updates

Things are cooking over at Roofstock, with plans in the works for a fractionalization service to be released later this year. The company tested options in 2019, hoping to capture some of the significant growth in retail demand. According to Roofstock Founder and CEO Gary Beasley, investors will be able to purchase fractional shares in single-family properties and portfolios for as little as $5,000.

Oakland-based Roofstock isn’t the only player moving into the space. Fundrise recently expanded into the single-family rental market with a $300 million credit facility borrowed from Goldman-Sachs for the construction of build-to-rent homes- their minimum is even lower, coming in at $500. Additionally, new startup Arrived Homes, backed by Amazon chieftain Jeff Bezos raised $37 million this year and is offering an even lower minimum investment- a cool $10.

TheRealDeal’s T.P. Yeatts has a phenomenal write-up on the trend, which you can read here.

That’s all we’ve got this week- but don’t fret- we’ll be back with the very best of the real estate crowdfunding world next week – so make sure to catch the next issue of the GowerCrowd Real Estate Crowdfunding Newsletter.