A group of seasoned property investors has launched a new real estate crowdfunding platform specifically aimed at giving accredited investors the opportunity to explore and invest exclusively in Manhattan real estate.
Founded in October 2004, CityFunders.com empowers investors to participate in a wide range of multimillion-dollar debt and equity deals, including multifamily homes, as well as hospitality, commercial and industrial properties — all in New York City.
“CityFunders fundamentally changes the way investors can participate in the nation’s, if not the world’s, most vibrant and profitable real estate market,” said David Behin, CEO and co-founder of the company.
“Our platform streamlines investing in New York City real estate deals — the most complex in the United States — and shatters the barriers to entry for the retail investor.”
CityFunders selects some of the Big Apple’s most promising debt and equity deals for potential investors, or the crowd, and offers up to five potential debt or equity deals at a time to investors. Investors can purchase shares of a deal for as little as $5,000 via CityFunders.com; some investments may have higher minimum investments.
All deals sourced by the CityFunders team are ultimately vetted by a committee of veteran New York City real estate developers and investors. Following a final committee approval, CityFunders commits funds to sponsors from a secured $40 million credit facility. Investors can then view a comprehensive profile of each deal, ask questions and, ultimately, invest in the deal on CityFunders.com.
Current loans available for investment include a mezzanine loan for the acquisition of a mixed-use apartment building in Manhattan’s Chinatown and the equity of a brand-new, 467-unit luxury rental tower on Long Island.
CityFunders’ website extolls an estimated internal rate of return of 10 to 11 percent for investors over a holding period of four to five years.