Realty Mogul, the online peer-to-peer marketplace for real estate investing, announced the completion of its first-ever crowdfunding project in New York, raising $1.6 million from 46 investors for two apartment buildings in Brooklyn and enabling project sponsor Cayuga Capital Management to recapitalize the property. The deal closes a highly successful first quarter for Realty Mogul, which included launching a new office in Irvine, California and handling other raises for projects varying from a Texas apartment complex to an office building in Washington, D.C.
“We’re proud of this first New York transaction with Cayuga,” said Jilliene Helman, CEO of Realty Mogul. “The buildings in this transaction are directly in the path of growth in Brooklyn and so represent an opportunity for our investors to be positioned for long-term value creation. Nearly all of the units have been moved out from under rent regulation, and the buildings are in a gentrifying market located near numerous demand drivers.”
Located at 297 and 311 Troutman Street in Brooklyn, the four-story, eight-unit apartment buildings contain 12,150 net rentable square feet. The properties are located one block from the “L” line of the New York subway system, a direct access to Manhattan. The buildings also are close to restaurants, bars and coffee shops and are within a 10-minute walk to Maria Hernandez Park, a seven-acre recreational park with newly renovated basketball courts, handball courts, fitness equipment and a performance stage.
“We’ve owned these apartment buildings for nearly eight years now, but we still see a big opportunity in a renovation program aimed at getting the rents in line with those being achieved elsewhere in the market,” said Jamie Wiseman, co-founder of Cayuga Capital Management. “We’ve budgeted significant amounts toward interior upgrades, common area improvements, a rear deck / solarium enclosure and construction of a new roof deck, and believe that over the next several years, this program will drive increased rents and achieve greater returns upon the ultimate sale of the asset.”
A real estate operating partner, development manager and property manager based in New York City, Cayuga invests in real property and debt secured by real property across all commercial real estate categories. The company typically targets multi-family and retail conversion opportunities in mixed-use walkable neighborhoods with access to public transportation that demonstrate improving residential and retail demand as well as constrained supply characteristics.
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