On Wednesday, real estate crowdfunding platform CityFunders announced the debut of an investment property located in the Crown Heights neighborhood of Brooklyn. The new property will be launched with the website’s new investment program, InvestSelect, which enables investors to choose their rate of return based on investment amount.
The existing 6,000 SF two-story commercial building is located at 259 Schenectady Avenue. Goodwill Industries, a provider of behavioral health services has fully leased half of the ground floor and the entire second floor for five years. Goodwill operates a network of 165 independent community-based organizations and has been in business for nearly 100 years. The other half of the ground floor is leased to a laundromat. The sponsor will use the funds to reposition the building into an 8,000 SF mixed-use building with the addition of a third floor, which will include two residential units.
CityFunders is offering a $350,000 participation. Investors who invest $30,000 or more will receive a 10% annual return, and those who invest $25,000 or less will receive a 9% annual return. The minimum investment is $5,000 and investments must be made in minimum increments of $5,000. The sponsors, Andrew J. Epstein and Dawson Stellberger have been involved in New York real estate management and investment for a combined 30 years. The partners own and manage more than a dozen buildings in Brooklyn. They are both members of Bushwack Capital and have partnered with CityFunders on previous deals.
Co-founder and CEO of CityFunders, David Behin, stated:
“The CityFunders team prides itself on forging partnerships with experienced sponsors and valuable tenants, and 259-261 Schenectady Street provides investors with a valuable investment opportunity. The new CityFunders InvestSelect program provides investors with the control over their investments that they deserve, and we are excited about bringing this new program to the crowd.”
Epstein, who is also managing partner of Bushwack Capital and Easy Street Properties, added:
“CityFunders is a valuable partner in the acquisition of 259 Schenectady Avenue, allowing us to capitalize on our repositioning plan and the overall future of historic Crown Heights.”
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