“Real estate crowdfunding opened up an investment opportunity that I wouldn’t otherwise have. Investing in multifamily properties in a city like New York – one of the best real estate markets in the country – is usually limited to high net worth individuals or institutional investors. I now own New York City property – and I’m already making money off of it. That just wouldn’t have been possible without crowdfunding through ArborCrowd.
1413 York Avenue is a six-story, mixed-use apartment building located in Manhattan’s Upper East Side. The deal quickly oversubscribed in less than 2 weeks.
ArborCrowd Sponsors, AMAC and Stone Street Properties (SSP), acquired the Property in April 2015 for $7,500,000. The business plan involved full gut renovations of the residential units and common areas as well as re-leasing the apartments at substantially increased rents.
• Early Distributions: In December 2016, the sponsor successfully executed
a fixed rate permanent loan, which proved to be very timely as interest rates have since increased. This meant investors received cash distributions a full
quarter ahead of schedule.
• Proven Value-Add Renovation: Renovations have nearly been
completed. In addition, some older leases have expired, and the sponsor expects to renew them at higher rental rates.
• Location: The Property is well located on the Upper East Side, one of
Manhattan’s most distinguished neighborhoods. The area is expected to
continue to improve with the addition of the new 2nd Avenue Subway line,
the first phase of which is expected to open during the
Targeted Investment Period.
• Strong Sponsor Track Record: The business plan is well suited to SSP’s
and AMAC’s extensive experience with similar assets and renovation
strategies in the Manhattan multifamily market.