New REIT to focus on Manhattan condos

NY Residential REIT is targeting online investors to raise $50M

New York /
May.May 05, 2017 10:55 AM

A brand new real estate investment trust has just set up shop, and it’s looking to capitalize on New York City’s steady supply of luxury apartments.

NY Residential REIT is trying to raise $50 million from online investors, Bloomberg reported. It currently has no assets, pursuing investors on the basis that its management team will buy property once it has access to funds. It will be targeting new development units coming to market.

The REIT — which counts celebrity broker Ryan Serhant as an adviser — plans to buy places to be rented out for income, and will look for small multifamily properties, single-family homes, condominiums and distressed assets, the SEC filing shows.

Changes to SEC rules in the last five years made it easier for the REIT to get started. The 2012 JOBS Act changed the rules to make simpler for small businesses to advertise and seek funds from a bigger collection of investors. Since 2015, the SEC has allowed startups to raise up to $50 million in a one-year period.

“Manhattan is one of the most sought after real estate markets in the world, but 99 percent of people can’t really participate,” said Jesse Stein, the chief executive officer of Commencement Capital LLC, the company created to manage and operate NY Residential REIT, according to Bloomberg. “Unless you’re a multimillionaire or unless you’re an institution, you probably don’t have the means to buy property for investment.”
However, Trump’s plan to bring corporate tax rate down to 15 percent may turn REITs into a less attractive investment option than they’ve been in the past. In March, The Real Deal ranked the major shareholders of the city’s REITs. [Bloomberg]Miriam Hall


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Albany buildings
How Albany is dealing with its 1K vacant buildings
How Albany is dealing with its 1K vacant buildings
Seth Weissman, John Catsimatidis, Mayor Eric Adams
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
(Photo Illustration by The Real Deal with Getty)
DC’s real estate market demands to be taken seriously
DC’s real estate market demands to be taken seriously
From left: Robert Reffkin and Rupert Murdoch (Getty, Compass)
ChatGPT didn’t write this week’s real estate news roundup, we promise
ChatGPT didn’t write this week’s real estate news roundup, we promise
(Photo Illustration by The Real Deal with Getty)
Native Hawaiians leaving state due to high cost of living
Native Hawaiians leaving state due to high cost of living
5603 Winslet Drive North in Franklin, TN with Paula Duvall
Charred $1.5M mansion finds buyer after days on market
Charred $1.5M mansion finds buyer after days on market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...