This week, New York-exclusive real estate crowdfunding platform, CityFunders, announced it is seeking investors for a new residential project located in Long Island City. The crowdfunding platform was founded by Jerry Swartz, Ayush Kapahi, along with brothers Albert and David Behin and launched last month.
The platform is already committed to raising $1 million in equity for a 467-unit rental tower that is being built by Simon Baron Development.
The campaign revealed:
“CityFunders is pleased to offer accredited investors (‘CityFunders Investors’) the opportunity to participate in a $1,000,000 position in the equity contribution (the “Contribution”) of $2,700,000 toward the $253,371,418 ground up development project located at 29-26 Northern Boulevard (the ‘Project’ or the ‘Property’ or the ‘Site’) located in the Long Island City neighborhood of Queens, New York.
“In return for their equity contribution, CityFunders investors will be entitled to a preferred return of 12% per annum on their unreturned capital contributions and a priority return of their capital contributions out of any preferred returns received by the Company with respect to its equity position in the Project. In addition, CityFunders investors will have a right to receive an additional 2% out of other proceeds received by the Company from the Project.”
The Property will consist of the following:
- 467 Rental Apartments
- 16,250 Square Feet of Retail
- 150 Parking Space
- Amenities included: pool, sauna, steam room, outdoor soccer pitch, indoor residents lounge, roof deck and bike storage.
During a recent interview with Real Estate Weekly, David stated that the exclusivity in New York City has given the platform a keen advantage in the city’s busy financial field:
“We have all the elements that make a strong real estate market. 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. We’ve done about $85 billion worth of real estate transactions in the city. Almost every facet of the market we’ve touched and we know really well.”
Kapahi noted:
“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.”
David added:
“Funding of NYC’s real estate deals is an extremely competitive business – especially for 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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