Real Estate

Crowdfunded Real Estate Deals Unravel as Funds Vanish

  • Online platform CrowdStreet says it takes fraud risk seriously
  • Nightingale Properties was set to handle Miami, Atlanta deals
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Hundreds of regular investors who together put up $63 million 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.