What does it mean when a metric is described as "targeted" or "projected"?
A "targeted" or "projected" metric represents a sponsor's best estimate of that data point. A targeted metric is typically calculated by means of financial modeling and based on a set of assumptions.
Are there any guarantees that a sponsor will hit a given target?
No, there are no guarantees of any sort with respect to performance in commercial real estate investing. Investment performance may exceed or miss any and all targeted metrics. Please note that investment opportunities on the 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.
What are some of the scenarios where a sponsor might exceed or miss a targeted metric?
Please refer to our article, "How to think about targeted metrics in commercial real estate" for a more in-depth exploration.
What are some commonly found examples of targeted metrics on the CrowdStreet platform?
- Targeted IRR (internal rate of return)
- Targeted Equity Multiple
- Targeted Cash Yield
- Targeted Investment Period
- Targeted Distribution Commencement