Greystar deals on Crowdstreet
Anyone have any insight on why Greystar is sponsoring deals on Crowdstreet? They really need to crowdsource their capital for some deals?
Anyone have any insight on why Greystar is sponsoring deals on Crowdstreet? They really need to crowdsource their capital for some deals?
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There are a lot of different reasons to use Crowdstreet, I wouldn't necessarily chalk it up to a lack of capital on Greystar's part. It can take the fundraising burden off the internal team if they are stretched, capital could be cheaper, Crowdstreet capital is more hands off from an asset management perspective, they can raise money and close faster than most RPE shops, ect.....
Crowdstreet is certainly more hands off, we have a few deal with them and, while I'm not on the capital markets team, my understanding is as long as they hit their IRR they don't give a fuck how.
Must be a development deal where they already own the land. Using online crowdfunding for acquisitions is an auto reject from brokers and sellers.
Must have ridiculous fees and promote structure in there.
Not really...look at a firm like Cadre. They do value add and existing asset acquisitions. The real question is: is there a fund or line of credit which can be used to close instead of relying on raising the capital on the platform.
Subline credit facilities are usually used by closed-end funds to lever the existing LP commitments (allows those funds to be more nimble and to "boost" IRR because you can call capital later). However, you would have raised the capital already because the facility is secured against existing LP commitments in place.
It might not be a subline. Yes sublines are secured against a fund, but take a look at all the crowdfunders, many fund with money before the ‘crowd funding’ is sold out. This means they either have a fund they use to close on deals all cash and than sell it down, or more likely, have a line of credit. There is absolutely no reason a line of credit can’t be secured against the ownership interest in the asset. And I bet the spread is higher too.
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