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CrowdStreet Plans $170 Million Series of Diversified CRE Products

CrowdStreet, an online marketplace for direct equity investment in U.S. commercial real estate, is raising $25 million for the company’s first CrowdStreet Blended Portfolio investment offering.

CrowdStreet, an online crowdfunding platform for commercial real estate investing, is raising $25 million for the company’s first CrowdStreet Blended Portfolio investment offering. The company also plans to release a series of diversified and specialty portfolio investment products that will collectively raise and invest up to $170 million.

The first offering will deploy proceeds across 30-50 pre-vetted projects on the CrowdStreet marketplace that represent a range of commercial and multifamily asset types, risk profiles and geographies.

The offering, which has a target Internal rate of return of 16 percent to 18 percent, will focus on individual assets valued between $15 million and $50 million located mainly in secondary markets across the U.S.

“Undertaking your own due diligence as a first-time real estate investor can be daunting. Even for those familiar with the market, the race to review and invest across so many deals can be hard,” said Tore Steen, CrowdStreet CEO. “Our new blended portfolio brings further simplicity, and investors and their advisors can access a wide range of pre-vetted and sought-after CrowdStreet marketplace offerings without the need to review and invest on an individual property basis.”

The company said that the program is a direct response to identified needs from both existing and prospective investors, as well as registered investment advisors who recommend that clients allocate a portion of their assets to institutional-quality commercial real estate.

There are currently more than 100,000 investors and 250 real estate operators and developers on the CrowdStreet platform. Since inception, more than $8.5 billion of commercial and multifamily properties have been listed. The company noted that since inception, fully realized offerings have produced an average annualized return of 36.3 percent XIRR and a 1.6x equity multiple on a 1.9-year holding period.

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