NEW YORK CITY—CityFunders, a capital sourcing platform for New York City real estate investments, has launched what it says is the first New York City-exclusive commercial real estate investment crowdfunding marketplace.
Led by a team of New York City real estate professionals with more than ninety years of collective experience, the tool allows investors to participate in a wide range of multi-million dollar debt and equity deals including multifamily, hospitality, commercial and industrial properties here.
To start with, investors can invest in the mezzanine loan for the acquisition of a mixed-use apartment building in Chinatown and the equity of a brand-new, 467 unit luxury rental tower in Long Island City.
The effort is being led by David Behin, partner and president of the investment sales and advisory division at MNS; Jerry Swartz, principal, HKS Capital Partners, and Ayush Kapahi, a founding partners of HKS.
"CityFunders fundamentally changes the way investors can participate in the nation's, if not the world's most vibrant, and profitable real estate market," says David Behin, CEO and co-founder of CityFunders. "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.”
With more than $85 billion in completed transactions and a track record of maximizing yields on New York City investment properties, CityFunders is able to select unique value propositions previously inaccessible to most investors.
“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,” David Behin adds.
“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 CityFunders are vetted by a committee of local real estate developers and investors. The CityFunders committee has over two hundred years of collective experience in New York City real estate and has executed over a trillion dollars of transactions.
“We wanted the guidance and second opinion of industry experts—real estate professionals who understand the many intricacies of the United States' most nuanced property market—to add another invaluable set of eyes to the approval/funding process,” Kapahi explains.
Following a final committee approval, CityFunders commits funds to sponsors from a secured $40 million credit facility, ensuring a fast close.
“Funding of NYC's real estate deals is an extremely competitive business—especially for the good deals,” notes David Behin. “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.”
Once the deal has been vetted and committed to, investors can view a comprehensive profile of each transaction, ask questions, and put in their money.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
