CrowdStreet Advisors Brings Innovative Private Commercial Real Estate Investment Solutions to Financial Advisors
CrowdStreet's in-house Investment Manager, CrowdStreet Advisors, accelerates initiative to help advisors access new investment opportunities for their clients, including an innovative private REIT fund, CrowdStreet REIT I (C-REIT)
AUSTIN, Texas, Oct. 25, 2022 /PRNewswire/ -- CrowdStreet, Inc. ("CrowdStreet"), an award-winning1 real estate investing platform, today announced plans to accelerate the development and support for products and services designed to meet the needs of the growing number of financial advisors looking to diversify client portfolios with opportunities outside of the public markets, like private commercial real estate and other alternative investments. CrowdStreet Advisors, LLC ("CrowdStreet Advisors") combines a team of highly experienced commercial real estate and investment management professionals with a group of financial technology innovators dedicated to working with advisors to bring exclusive boutique real estate investments to their clients.
As of September 30, 2022, CrowdStreet Advisors had $431 million in assets under management across separately managed accounts and more than 25 private funds. Their flagship fund, CrowdStreet REIT I (C-REIT), was recently launched and offers advisors a low-cost entry point and professionally-managed option for clients interested in investing in multiple private commercial real estate projects focused on growth and capital appreciation in middle markets with gross asset values typically ranging from $40 million to $100 million. C-REIT has quickly raised $37 million and is approved on major custody platforms, including Fidelity, Schwab, Pershing, TD Ameritrade, as well as 17 self-directed IRA (SDIRA) custodians.
CrowdStreet CEO and co-founder Tore Steen. "At CrowdStreet our mission has always been to increase investor access to private commercial real estate—especially the growth-oriented value-add, opportunistic, and development segments of the real estate market that have historically only been available to institutional investors. Financial advisors play a critical role in helping investors grow and preserve wealth, and we're excited to accelerate our efforts at a time when many investors are looking to their advisors for new ways to navigate a challenging market, including access to alternative investments with the potential to provide some level of downside protection while helping to mitigate the effects of inflation."
CrowdStreet Advisors' accelerated expansion of support for financial advisors is being driven by investors who are increasingly asking their advisors for more ways to diversify their portfolios and for assets that may help mitigate the effects of inflation. Recently, CrowdStreet announced that it raised $43 million in additional funding from a diverse coalition of industry-leading firms led by Nuveen Real Estate, a TIAA company, and plans to use a portion of this funding to expand its capabilities and support growing interest from advisors.
CrowdStreet Advisors President Sheldon Chang. "We are hyper-focused on advisors. Introducing them to CrowdStreet and our highly differentiated investment opportunities is only part of the CrowdStreet Advisors mandate. In addition to our dedicated teams and rigorous investment selection process, we have a direct line to the latest research and boots-on-the-ground insights from our extensive regional network of sponsors, developers, and operators. We believe our ability to tap into this expertise—and our access to proprietary data and projects available through them—gives us a distinct edge over other investment managers in this space, and we're passing that on to advisors through our products and services."
CrowdStreet Advisors provides access to a curated selection of private commercial real estate investments that have historically only been made available to institutional investors by firms offering private funds with high investment minimums.
The CrowdStreet Advisors Edge:
- Unique access to middle-market commercial real estate projects sourced from a proprietary network of 300+ sponsors and operators.
- Dedicated team—including 78+ cross-organizational professionals—involved in all aspects of the investment process, with CrowdStreet Advisors' portfolio management curating investments for funds.
- Service-oriented investor relations team to guide advisors through the investment process and provide ongoing, hands-on support over the life of an investment.
- Continuous research and analysis to help advisors stay informed about the commercial real estate market and its role in client portfolios.
CrowdStreet Advisors Chief Investment Officer Ian Formigle. "We select growth-oriented projects in locations where we believe we have a discernible edge. Secondary metro markets like Austin, Nashville, and Raleigh-Durham that possess strong market fundamentals, ranking above national averages in key areas such as job and population growth, and that we believe offer attractive, risk-adjusted investment opportunities. Investments that stand out as relatively unique yet still complementary to the typical Core, Core Plus investments you find in many client portfolios today."
Since 2019, CrowdStreet has evaluated over 5,000 real estate projects.2 Of those, CrowdStreet Advisors has selected only the top 3% of all potential opportunities, with C-REIT and thematic funds investing in just 1.2% of the overall projects evaluated, a reflection of the fund's selectivity.3
CrowdStreet Advisors is a wholly-owned subsidiary of CrowdStreet, Inc. ("CrowdStreet") that provides advisors and their clients with access to curated private commercial real estate opportunities selected from CrowdStreet's proprietary deal flow, sourced from a deep network of 300+ real estate sponsors, developers, and operators. Through its private-market products and services—REITs, thematic funds, separately managed accounts, and custom fund solutions—CrowdStreet Advisors provides unique exposure to middle-market commercial real estate (projects with gross asset values typically ranging from $40 million to $100 million), offering investments that are historically less correlated to public-market assets.4 For more information on CrowdStreet Advisors, visit www.crowdstreetadvisors.com.
CrowdStreet, Inc. ("CrowdStreet") offers investment opportunities and financial services on its website.
Advisory services are offered through CrowdStreet Advisors, LLC ("CrowdStreet Advisors"), a wholly-owned subsidiary of CrowdStreet and a federally registered investment adviser. CrowdStreet Advisors provides investment advisory services exclusively to privately managed accounts and private funds and does not otherwise provide investment advisory services to the CrowdStreet Marketplace or its users.
This communication is for informational purposes only and should not be regarded as a recommendation, an offer to sell securities, or a solicitation of an offer to buy any investment products, financial products, or services. Investment opportunities available through CrowdStreet are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.
Media Contact:
Siobhan Nolan
JConnelly
(862) 217-9585
[email protected]
1 CrowdStreet was named Best Overall Real Estate Crowdfunding Site by Investopedia for 2021 and 2022. Investopedia chose the Best Real Estate Crowdfunding Sites by conducting an independent review process based on a variety of factors, including Investment minimums, Platform fees, Total number of investors, Total investor dividends, Historical annual returns, Reinvestment opportunities, Website transparency (how easy it is to find platform fees, minimums, and redemption options), Better Business Bureau ratings, and Educational offerings. They also investigate each company's online reputation—including average monthly search volume, recent news, customer reviews, and complaints—to ensure the platform is well respected and legitimate. https://www.investopedia.com/review-process-4802351
2 Represents prospective projects reviewed since 2019 as of July 2022. Prior data from CrowdStreet's inception from 2014-2019 is not available.
3 Represents % of deals approved for all CrowdStreet Advisors Funds, including CSBP (algorithm-based). Excluding CSBP, only 1.2% of prospective deals were approved for fund investment.
4 Private real estate is, by nature, generally less volatile than the stock market. This lack of volatility does not necessarily translate to private real estate not fluctuating in or losing value. Further, the value of private real estate investments will fluctuate, and the value of real estate often lags behind general market conditions.
SOURCE CrowdStreet Advisors, LLC
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