CrowdStreet
CrowdStreet

What does our chief investment officer think about the future of commercial real estate?

Email sent: Jul 8, 2020 9:13pm
See the rest of this month’s news in our Street Views newsletter.

A Note From Our Chief Investment Officer

With the first half of 2020 behind us, it’s safe to say this year has not played out the way any of us had envisioned back in January. COVID-19 forced us all to reevaluate our priorities, including how we use and navigate physical places. When our homes become our office and our kids’ school, when bars and restaurants are off-limits, and when none of us can remember the last time we got our hair cut in a salon, space gets a lot more personal.

 

People and businesses are reconsidering where and how they want to spend the next phase of their lives. How valuable is that downtown office space when the vibrant city core we came to love is missing and we’re not sure when it will return? If we can work from anywhere, will people move out of apartments in major metros to a house in the suburbs with more space? And if we’re all shopping online, how will retailers adapt to the increasing need for warehousing and last-mile distribution and the declining need for a physical store space? There is no denying that over the coming months, commercial real estate will need to evolve to meet the changing demands for space, amenities, and logistics. Our deal flow will also adjust accordingly.

 

We’re continuously gathering data from across our business and industry, and are committed to staying agile, attentive, and open-minded. Our goal is, and always will be, to bring you institutional-quality investment opportunities that are positioned to thrive over their holding periods. We’ll share a more in-depth outlook and discuss where we see the most opportunity in the coming weeks.

 

Ian Formigle
Chief Investment Officer, CrowdStreet

The Marketplace in Q2: Strong Investor Demand Despite Slower Deal Flow

Since March, our Investments team has been looking for deals that can stand up to post-COVID-19 underwriting assumptions, including projects that are repricing, or where the sponsor is able to take advantage of favorable debt terms and secure financing. They’re also putting even more emphasis on the sponsor’s track record–looking for tenured and enterprise sponsors–as well as sponsors with strong balance sheets. Unsurprisingly, Marketplace deal flow slowed over the last quarter.

 

Investor demand, however, did not.

 

It took mere minutes for our investors to commit $12.5 million for a Washington D.C. multifamily property sponsored by The UIP Companies, Inc (UIP) in early March. In mid-April, Ridgeline Capital Partners was able to raise $5.3 million from 79 investors for a medical office building in the Dallas-Fort Worth area. The Buccini/Pollin Group, Inc. saw more than $18 million in offers for their opportunistic hospitality deal at the end of June. 

 

Our Chief Investment Officer, Ian Formigle, recently spoke to The Wall Street Journal to explain what’s behind the spike in demand. Read The Wall Street Journal article.

 

 

An Interview with Dr. Peter Linneman

CrowdStreet’s Darren Powderly recently sat down with renowned real estate expert Dr. Peter Linneman, who has three key pieces of advice for individual investors looking at commercial real estate right now.

 

Read More
 

What is Regulation A+ and how Does it Apply to Real Estate Crowdfunding?

Many real estate crowdfunding sites rely on a 2016 Jumpstart Our Business Startups (JOBS) Act regulation titled Regulation A (or Reg A+), which democratizes access to these types of deals for smaller retail investors and non-accredited investors. 

 

Read More
 

How to Invest With Real Estate

Real estate investing is popular, and perhaps now more so than ever, as low mortgage rates make real estate more affordable. In fact, Americans love real estate, and a 2019 Bankrate survey showed that it was their favorite long-term investment, even beating out stocks.

 

Read More
 

Crowdstreet CEO Ranks Among Top 50 Financial CEOs of 2020

We’re excited to announce that our CEO, Tore Steen, has been recognized by The Financial Technology Report as a Top 50 Financial Technology CEO Of 2020. 

 

Read More
 

“As the dollar goes down, you really can’t go wrong in real estate assuming you’re that picking the right real estate asset classes, and specifically finding the very good investments that have steady cash flow and a good future…”

- Townsend Baldwin, CrowdStreet investor, in a recent StreetBeats

 

CrowdStreet Opportunistic Fund

Distressed and opportunistic focused fund seeking commercial real estate assets with high-return potential.

 

View the details.

 

RD Real Estate Debt Fund II LP

Access an actively-managed, diversified portfolio of acquisition loans, construction loans, and refinancings for commercial and non-owner occupied residential real estate projects in urban areas in the United States.

 

View the details.

 

Mezzanine Fund V

$475 million fund targeting a diversified portfolio of high yield debt and preferred equity investments including; acquisition loans, construction financing, and financing for partner buy-outs and special distributions.

 

View the details.

 

Rainbow Realty Cannabis Fund

An unlevered equity & debt fund focused on providing capital to growing cannabis operators through sale-leasebacks and loans secured by existing real property.

 

View the details

CrowdStreet
621 SW Morrison St  Suite 400
Portland  OR   97205   United States
info@crowdstreet.com
888.432.7693 | crowdstreet.com
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This communication is intended only for the recipient to whom it is addressed and may contain information that is privileged and confidential.  If you have received this in error, please immediately notify the sender and permanently delete the original and any printout thereof.  

 

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. Any information contained herein is believed by CrowdStreet, Inc. (“CrowdStreet”) to be reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. No part of this email (or its attachments) is intended to be binding on CrowdStreet or to supersede any issuer offering materials.  CrowdStreet is not a registered broker-dealer or investment adviser. We recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

 

Information in this communication, including information regarding targeted returns and investment performance, is provided by the sponsor of the investment opportunity and is subject to change. Forward-looking statements, hypothetical information or calculations, financial estimates and targeted returns are inherently uncertain. Such information should not be used as a primary basis for an investor’s decision to invest. Investment opportunities on the CrowdStreet Marketplace 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.  

 

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