NY Residential REIT recently announced it had made its first investment as part of the public offering, a preferred equity investment in a luxury development project in Chelsea that is under construction and near completion. Stein did not divulge the value of the investment, but did say the investment will yield an annualized return of greater than 20%. “We believe this transaction is a good example of our ability to source opportunistic investments on high quality assets in Manhattan,” Stein said.

He also did not reveal the amount of money raised thus far in the public offering, noting that the firm would be soon filing an update on the campaign to the SEC.

NY Residential REIT is currently looking for investment opportunities in condominium, single-family homes and rental apartment buildings in Manhattan. According to its website, the firm is seeking to acquire or invest in: properties in need of large scale or cosmetic renovation, that have existing tenancy, properties that feature sellers in distress or with timing restrictions, bulk or fractured condominium units or properties that are in advance of development completion.

Stein says that the typical investment for the REIT will be in the $1-million to $3-million range and will look to partner with asset managers and or owner-operators to leverage its investment as well as participate in higher quality residential assets. The firm will also seek to bring in limited partners into deals it manages, he adds.

NY Residential REIT has some investments “teed up and ready to go” that will close once the adequate capital has been raised, Stein says.

“One of the benefits I think we have as opposed to some other investment strategies is that the supply of potential transactions is huge,” Stein notes. “At any given time there are thousands of units on the market and a ton of different projects that are either seeking capital or available for an asset manager or developer to purchase and manage.”

Depending on the success of the NY Residential REIT, which is focused solely on Manhattan investment, Stein says the firm intends that NY Residential REIT will be the first of many REITS it sponsors that will focus either in certain locations, most likely major U.S. cities, or different asset classes.

NEW YORK CITY—NY Residential REIT, LLC is in the midst of what it terms a “rolling” $50-million public offering and is looking for residential investment opportunities in Manhattan that ran the gamut from fixer-uppers, distressed properties to projects under construction.

Jesse Stein, CEO of NY Residential REIT tells Globest.com that its current public offering is atypical of most in that it is able to make investments as monies are raised under provisions of the Securities and Exchange Commission's Regulation A+ passed in 2015 that affords exemptions to some SEC filing registrations for small to medium-sized companies issuing public offerings of up to $20 million (Tier 1) and up to $50 million (Tier 2).

Commencement Capital is the sponsor and manager of NY Residential REIT. The management team of the REIT also includes president Jonathan Morris, who has more than 25 years of real estate experience. Morris' previous experience includes stints with Charles E. Smith Residential Realty, Inc. and Boston Properties, where he facilitated a number of high-quality acquisitions, many through UPREIT transactions. Since 2011, he has taught a master's level REIT class at Georgetown University.

“Unlike a typical IPO where you would go out on a two-week road show and raise $50 million or nothing, it is an ongoing raise,” Stein says. “So it is a rolling closing where as capital is raised we can use that capital to invest in and acquire assets.” Stein was formerly the founder and COO of ETRE Financial, a real estate financial services and information technology company focused on facilitating the public listing of individual real estate assets. Stein also served as the COO, secretary and a member of the Board of Directors of ETRE REIT, LLC. He is also the founder and managing principal of Advanced Fundamentals, a real estate data analytics and indexing firm.

NY Residential REIT recently announced it had made its first investment as part of the public offering, a preferred equity investment in a luxury development project in Chelsea that is under construction and near completion. Stein did not divulge the value of the investment, but did say the investment will yield an annualized return of greater than 20%. “We believe this transaction is a good example of our ability to source opportunistic investments on high quality assets in Manhattan,” Stein said.

He also did not reveal the amount of money raised thus far in the public offering, noting that the firm would be soon filing an update on the campaign to the SEC.

NY Residential REIT is currently looking for investment opportunities in condominium, single-family homes and rental apartment buildings in Manhattan. According to its website, the firm is seeking to acquire or invest in: properties in need of large scale or cosmetic renovation, that have existing tenancy, properties that feature sellers in distress or with timing restrictions, bulk or fractured condominium units or properties that are in advance of development completion.

Stein says that the typical investment for the REIT will be in the $1-million to $3-million range and will look to partner with asset managers and or owner-operators to leverage its investment as well as participate in higher quality residential assets. The firm will also seek to bring in limited partners into deals it manages, he adds.

NY Residential REIT has some investments “teed up and ready to go” that will close once the adequate capital has been raised, Stein says.

“One of the benefits I think we have as opposed to some other investment strategies is that the supply of potential transactions is huge,” Stein notes. “At any given time there are thousands of units on the market and a ton of different projects that are either seeking capital or available for an asset manager or developer to purchase and manage.”

Depending on the success of the NY Residential REIT, which is focused solely on Manhattan investment, Stein says the firm intends that NY Residential REIT will be the first of many REITS it sponsors that will focus either in certain locations, most likely major U.S. cities, or different asset classes.