The Real Deal New York

New investment fund targets Brooklyn, Harlem rentals

Seth Weissman aims to raise $50 million to buy buildings

June 09, 2014 01:05PM

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seth-weissman

Seth Weissman

Real estate investor Seth Weissman has launched a $5 million fund to acquire Bedford-Stuyvesant buildings as the first stage of the venture CityShares.

He plans to pool funds from investors and buy apartment complexes in several Brooklyn neighborhoods, including Bushwick, Crown Heights and Bed-Stuy, as well as Harlem. His goal is to raise $50 million total. Weissman, who formerly worked at Perry Capital and Goldman Sachs, owns 10 apartment buildings in the city at the moment.

“Outside of buying a co-op or condo, there’s no good way to invest in New York real estate,” Weissman told Crain’s. “We hope to change that.”

Weissman Equities broke ground last year on a mixed-use building at 426 Bainbridge Street in Bed-Stuy, as previously reported. [Crain's]Mark Maurer

  • LOL

    how much did seth pay you to have this written?

    • MSNBC sux

      troll

      • Loser

        shut up seth ^

      • richjew

        This is self promotion paid or unpaid. The real landlords in this city make sure to stay out of the press

        • MSNBC sux

          Like the Zeckendorfs, Macklowe and Trump …good insight , Einstein

    • Market watcher

      Regardless of whether this was paid placement, the potential
      investors should look deeply in the Weissman Equities’s track record:
      1. 121 E. 23rd # 6D: Acquired 7/05 for $1,176m. sold. $1,330m 2010. After transfer taxes and brokerage fees, likely a wash.

      2.
      402 W. 22nd: Acquired 2/08 for $2,615m. sold $3,53m 11/12. After
      transfer taxes, brokerage fees, and renovation costs, likely a wash.

      3.
      The Pines. Purchased for $20m. Weissman mismanaged the hotel, food
      & beverage. Weissman was removed as manager of the complex.
      Investors lose millions. http://markatlarge.com/new-yor

      4.
      2299 Adam C Powell Blvd. Acquired for $1,412m 8/13, after being
      flipped by previous owner who acquired for $920k 16 months earlier. SRO
      units with high FFE costs. Didn’t learn from Pines experience on
      furnished spaces. What is the NOI these days? 12% cash on cash on a
      total basis of $2,22m would have to equal at least $260k right? What is
      the NOI here?

      5. 262 Malcolm X, Bed-Stuy — Acquired for $1,5m
      8/13 after being flipped by previous owner who acquired for $700k 8
      months earlier. Renovated a few units. Now has three mechanics liens
      against the property for $227k by Jabar Construction Corp. Doesn’t pay
      his people?

      6. 426 Bainbridge St., Brownsville — Acquired for
      $1,15m 9/13. Several tax liens on the property. Renovation started and
      then stalled. Started and then stalled. Status?

      That’s it folks. 6
      total deals, not 10. 2 exited break even during biggest boom time in
      our life. 1 mismanaged into the ground. 1 mismanaged currently, maybe 2.
      1 bad business plan in Harlem SROs.

      Rich kid, or not, they teach you at Wharton, if you fail once as an entrepreneur it is likely you will fail again.

  • richjew

    Dont see what the big deal is. I put $5 million of my own money into my average deal.

  • Market watcher

    Regardless of whether this was paid placement, the potential investors should look deeply in the Weissman Equities’s track record:
    1. 121 E. 23rd # 6D: Acquired 7/05 for $1,176m. sold. $1,330m 2010. After transfer taxes and brokerage fees, likely a wash.

    2. 402 W. 22nd: Acquired 2/08 for $2,615m. sold $3,53m 11/12. After transfer taxes, brokerage fees, and renovation costs, likely a wash.

    3. The Pines. Purchased for $20m. Weissman mismanaged the hotel, food & beverage. Weissman was removed as manager of the complex. Investors lose millions. http://markatlarge.com/new-yorks-gay-resort-is-swirling-in-a-sea-of-rumors/

    4. 2299 Adam C Powell Blvd. Acquired for $1,412m 8/13, after being flipped by previous owner who acquired for $920k 16 months earlier. SRO units with high FFE costs. Didn’t learn from Pines experience on furnished spaces. What is the NOI these days? 12% cash on cash on a total basis of $2,22m would have to equal at least $260k right? What is the NOI here?

    5. 262 Malcolm X, Bed-Stuy — Acquired for $1,5m 8/13 after being flipped by previous owner who acquired for $700k 8 months earlier. Renovated a few units. Now has three mechanics liens against the property for $227k by Jabar Construction Corp. Doesn’t pay his people?

    6. 426 Bainbridge St., Brownsville — Acquired for $1,15m 9/13. Several tax liens on the property. Renovation started and then stalled. Started and then stalled. Status?

    That’s it folks. 6 total deals, not 10. 2 exited break even during biggest boom time in our life. 1 mismanaged into the ground. 1 mismanaged currently, maybe 2. 1 bad business plan in Harlem SROs.

    Rich kid, or not, they teach you at Wharton, if you fail once as an entrepreneur it is likely you will fail again.

    • sucks

      ouch!!!!!!!!!!!!!!

    • sojourner

      someone sounds bitter…they sold a property for $3.53M v paying $2.615M just 4 years earlier – a 36% increase in 4 years not to mention income generated during that period. thats “likely a wash?”

      • zinger

        $900k difference in purchase/sale price with a 4yr difference is a wash…that building needed hundreds of thousands in renovations

        favorite quote about him:

        “sold most of their properties to Seth Weissman, a young kid who no one knows anything about other than that he is from a rich family and is connected to the Hamptons”

        • zinger

          BUT whoever wrote that spiel does sound a bit bitter…how long did that take to compile? yikes.

  • d

    ponzi scheme?

    • Lev

      Stick to fire island bro

  • Tenant of Weissman equities

    Seth Weissman slumlord tries to evict rent stabilized tenant to take entire townhouse for self.

    http://statecasefiles.justia.com/documents/new-york/other-courts/2012-ny-slip-op-32171-u.pdf?ts=1345735211

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