New York-exclusive real estate crowdfunding platform CityFunders, is eyeing Bushwick for its next investment.
The company launched in June by brothers Albert and David Behin has already committed to raise $1 million in equity for a new 467-unit rental tower being built by Simon Baron Development in Long Island City.
It is also funding a mezzanine loan for the acquisition of a mixed-use apartment building in Chinatown.
David Behin, the CEO and co-founder of CityFunders, said the platform’s NYC exclusivity will give it an edge in what is becoming a busy financial field.
“We have all the elements that make a strong real estate market,” Behin said. “People from all over the country and around the world are moving here. For a whole host of reasons, it’s a very solid place to invest.”
Led by a team of New York City real estate professionals with more than 90 years of collective experience, CityFunders will help investors participate in a wide range of multi-million dollar debt and equity deals including multi-family, hospitality, commercial and industrial properties located in NYC.
“We’ve done about $85 billion worth of real estate transactions in the city,” Behin said while describing he and co-founders Jerry Swartz, Ayush Kapahi and his brother Albert Behin. “Almost every facet of the market we’ve touched and we know really well.
A qualifying, or accredited investor must bring in $200,000 per year as a single person, $300,000 as a couple or have a net worth of at least $1 million (not including the value of their home).
Where the minimum contribution for conventional property investments may be set at $250,000 or more, investors jumping in via CityFunders could hand over as little as $5,000, depending on the project.
“You don’t have to invest a million,” said Behin, who said that his new investment vehicle “shatters the barriers to entry for the retail investor.
“Our entry point of $5,000 gives retail investors access to deals which were previously available only to the very wealthy or in-the-know,” said Behin.
The core thesis behind CityFunders is that investors are looking for new ways to diversify their investment portfolios and maximize their returns.
NYC real estate investing can provide those returns while the CityFunders transparent platform ensures that access to information is as important as the ROI generated.
“The CityFunders team selects some of New York City’s most promising debt and equity deals for potential investors [the crowd]. We put each and every deal through a rigorous underwriting process with a relentless focus on accuracy, viability, and profitability,” says Kapahi, who is responsible for deal generation.
All deals sourced by the CityFunders team are ultimately vetted by a committee of leading New York City real estate developers and investors and Behin expects that two to three opportunities will be available at a time.
Following a final committee approval, CityFunders commits funds to sponsors from a secured $40MM credit facility, ensuring a lightning-fast close.
“Funding of NYC’s real estate deals is an extremely competitive business – especially for the good deals. For any funding entity, whether crowdfunding or traditional sources of capital, commitment to the deal is key. Without that, Sponsors of good deals will never work with you, reducing the platform to mediocre deals that couldn’t get funded elsewhere,” said Behin.
Once the deal has been vetted and committed to, investors can view a comprehensive profile of each deal, ask questions, and, ultimately, invest in the deal on CityFunders.com.