Crowdfunded real estate projects unravel as funds vanish

Two deals orchestrated by CrowdStreet Inc have fallen apart as investors’ money vanished from bank accounts earmarked to buy equity in buildings, according to bankruptcy court papers. — Bloomberg

ATLANTA: Hundreds of regular investors who together put up US$63mil (RM286.18mil) to buy pieces of Atlanta and Miami commercial real estate have allegedly seen their funds disappear.

Two deals orchestrated by CrowdStreet Inc, a real estate investment company that crowd-sources funds from relatively wealthy individuals, have fallen apart as investors’ money vanished from bank accounts earmarked to buy equity in buildings, according to bankruptcy court papers.