NEW YORK CITY—CityFunders—the real estate crowdfunding platform dedicated exclusively to offering properties in New York City—has launched a new investment program, InvestSelect, enabling investors to choose their rate of return based on investment amount. The program's inaugural investment property is a commercial building in the Crown Heights neighborhood of Brooklyn.
Located at 259 Schenectady Ave., the 6,000-square-foot, two-story property has been home to Goodwill Industries—a provider of behavioral health services that has fully leased half of the ground floor and the entire second floor—for five years. The remaining half of the ground floor is leased to a laundromat.
CityFunders is offering a $350,000 participation. Investors who invest $30,000 or more will receive a 10% annual return, and those who invest $25,000 or less will receive a 9% annual return. The minimum investment is $5,000 and investments must be made in minimum increments of $5,000.
The sponsor will use the funds to reposition the building into an 8,000-square-foot mixed-use building with the addition of a third floor, which will include two residential units.
The sponsors, Andrew J. Epstein and Dawson Stellberger, have been involved in New York real estate management and investment for a combined 30 years. The partners own and manage more than a dozen buildings in Brooklyn. They are both members of Bushwack Capital and have partnered with CityFunders on previous deals.
Crown Heights reportedly is one of the fastest changing neighborhoods in Brooklyn, attracting new shops, restaurants and residential developments to meet the growing demand of the new influx of residents. There are approximately two-dozen projects in various stages of development in the neighborhood, representing hundreds of units, some of which are condominiums, signifying affluent professionals are being drawn to Crown Heights.
The neighborhood is easily accessible by the 2, 3, 4, and 5 subway trains and is in close proximity to the Brooklyn Museum and the Brooklyn Botanic Garden.
"The CityFunders team prides itself on forging partnerships with experienced sponsors and valuable tenants, and 259-261 Schenectady Street provides investors with a valuable investment opportunity," says David Behin, CEO and co-founder of CityFunders. "The new CityFunders InvestSelect program provides investors with the control over their investments that they deserve, and we are excited about bringing this new program to the crowd."
And the sky is the limit in terms of crowdfunding's potential, he tells GlobeSt.com. "We are only at the very cusp of crowdfunding for real estate deals. As the industry grows, I believe that this form of investing can become a significant source of capital for sponsors and real estate developers throughout the world.
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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.
