Portland's crowdfunding real estate company CrowdStreet raises seed funds and hires two more execs
Real Estate Marketplace Raises $800,000.
Portlands CrowdStreet announced Tuesday it has raised $800,000 in seed funding, led by Green Visor Capital and Seven Peaks Ventures and joined by Portland Seed Fund.
CrowdStreet is a crowdfunding marketplace connecting accredited investors with institutional-quality real estate investments, today announced it has closed.
The company said in a release it will use the capital to grow its investor membership base, attract new real estate sponsors and continue to enhance its platform.
CrowdStreet has added two key executives to its roster, Ian Formigle as vice president of Investments and Steve Drew as vice president of Product and Marketing.
Dino Vendetti, general partner at Seven Peaks Ventures, and Simon Yoo, managing partner at Green Visor Capital, have joined the Board of Directors.
Its very exciting to be able to grow our team, its now up to six people, and to offer some great new deals, said CEO Tore Steen.
One real estate deal the company is offering is a mezzanine financing for 30 Knightsbridge Road, a four-building class B+ office complex in Piscataway, N.J.
Sponsor EverWest is using CrowdStreet to target a raise of $1.7 million as part of its $6 million mezzanine financing. The target annual cash yield to investors is 10.5 percent.
Usually you never get access to invest alongside institutional investors, individuals are locked out at $25,000, Steen told the Tribune.
He said the CrowdStreet method is to educate investors about the developments and let them learn from other, more experienced investors in an online community.
For example with Knightsbridge, we had a webinar with over 50 investor members participating. They got a chance to listen to Tom McCahill, the Managing Principal of Structured Finance at EverWest, the company sponsoring the project. He was able to field their questions and those of the moderator.
Accredited investors must be registered with CrowdStreet to participate.
Steen says the fund is still open, and he will know in 45 days whether it was a success.
A lot of people hold off until they can touch the deal, until they can feel the company they will be investing in.
CrowdStreets mission is to provide the most trusted and reliable real estate investment marketplace designed to simplify transactions between accredited investors and institutional-quality real estate developers and operators.
We invested in CrowdStreet because of the teams hyper-focus on the institutional real estate market, where accredited investors want to put their money, said Michael Walsh, partner at Green Visor Capital.
CrowdStreet offers accredited investors unique access to institutional-quality commercial real estate investment opportunities through an intuitively designed online marketplace. Through the marketplace, investors can easily find suitable investment opportunities, manage offers, track investment performance and build a portfolio of commercial real estate investments – at no cost to the investor. Investors can search the CrowdStreet marketplace to find and select pre-screened commercial real estate opportunities by product type, geographic region and targeted return.
Steen said CrowdStreet expects to hire more product development and marketing staff in the coming months, and to remain in its Pearl District offices.
Its preferable to be in the downtown core for recruiting and for our corporate culture. When you are dealing with commercial real estate we should be in the heart of it.
In July, CrowdStreet completed its first public posting on behalf of Mainstreet Bloomington, LLC to fund a 66,197-square-foot, Next Generation care and rehabilitation facility with 100 recovery suites. Mainstreet raised $1.6 million in just four weeks, one of the largest raises for a real estate crowdfunding transaction.