A new real estate crowdfunding platform, CityFunders, has launched in New York. The platform exclusively invests in deals in the New York City area.
At launch there are two deals on the site, one is a mezzanine loan for the acquisition of a mixed-use apartment building in Manhattan’s Chinatown and the other offers equity in a new 467 unit luxury rental tower in Long Island City.
CityFunders leverages the extensive experience and network of industry contacts of real estate veterans David Behin, Jerry Swartz, Ayush Kapahi and Albert Behin.
David Behin, CEO and co-founder of CityFunders, commented:
“CityFunders fundamentally changes the way investors can participate in the nation's, if not the world's most vibrant, and profitable real estate market. 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.”
“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.”
CityFunders will cater to investors who are looking for new ways to diversify their investment portfolios and maximize their returns. The team feel that the CityFunders platform will give investors access to New York City real estate, an investment opportunity that could provide the high returns investors are searching for.
Ayush Kapahi, who is responsible for deal generation, explained:
“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.”
“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.”
It is likely that the platform will also commit funds to sponsor a secured $40 million credit facility, which will allow a fast close on deals, but this is pending final committee approval.
“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.”
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