EarlyShares, a crowdfunding platform that gives accredited investors direct access to commercial real estate opportunities, has launched an equity investment offering for East 3rd Street, a Manhattan investment opportunity from Magnus Capital Partners. The deal, featuring 14.46% estimated investor IRR and 7.0% preferred return, gives EarlyShares investors access to the off-market acquisition and rehab of two multifamily buildings in New York City.
Magnus Capital Partners (Magnus) is a real estate investment management firm that has been involved in $200 million of successful investments in New York, Los Angeles, and Houston. Magnus is in the final stages of an exclusive, off-market negotiation to acquire the two contiguous buildings on East 3rd Street in the East Village neighborhood of Manhattan, containing 47 residential units. The total equity is $9,184,582, of which $8,724,582 is available to investors on EarlyShares. As sponsor, Magnus is contributing $460,000.
Magnus has underwritten a business plan designed to reposition the buildings as upmarket rentals by adding convenience and luxury amenities. Additional value-add opportunities include duplexing ground floor units, creating units with private garden access, and adding bedroom/bathroom count to further boost NOI.
Vishal Arora, Managing Principal of Magnus Capital, stated:
“East Village real estate is hard to come by, especially at the off-market price point at which our firm is poised to close on the East 3rd Street properties. Given that in-place rents at the site are currently around 27% below true market value, we’re confident that we can increase rental revenue through unit upgrades, rent roll optimization, and the addition of new amenities.”
Joanna Schwartz, co-founder and CEO of EarlyShares, added:
“We’re thrilled to be giving accredited investors across the U.S. access to Manhattan real estate by hosting Magnus’ new deal on EarlyShares. Magnus has a strong history of earning investors returns in similar transactions, and we look forward to helping them welcome new investors into their community through this exciting offering.”
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