CityShares has launched an alternative investment platform which provides accredited investors with the opportunity to invest in appreciating New York City neighbourhoods.
The firm’s first Neighbourhood Investment Fund (NIF) covers Bedford-Stuyvesant, Brooklyn.
The Bedford-Stuyvesant fund is the first in a series of neighbourhood investment funds that will invest in a portfolio of residential and mixed-use properties providing investors with steady income, asset diversification and professional management.
CityShares Bedford-Stuyvesant will invest in this historic Brooklyn neighbourhood which has robust housing demand due to its distinctive housing stock, access to mass transit and proximity to growing employment centres in and beyond the borough.
CityShares founder Seth Weissman says: "CityShares is creating a new alternative investment asset class that is being marketing directly to accredited investors globally and in the US. Similar to an index fund that tracks a specific segment of the stock market, CityShares invests in a diversified portfolio of properties within a specific neighbourhood allowing investors to express their optimism in the growth of a neighbourhood and capture income and potential appreciation while holding a diversified basket of properties under professional and active management."
CityShares plans to roll out a series of neighbourhood funds for other New York City neighbourhoods including Harlem, Crown Heights, Bushwick and possibly Greenpoint. The funds will allow accredited investors to own a slice of the Big Apple for USD100,000; significantly less than the current average sales price of a Manhattan apartment which has topped USD1.75 million.
The CityShares Bed-Stuy fund requires a minimum investment of USD100,000 for accredited investors only. There are no geographic restrictions and any accredited, US or global investor is eligible to participate in these neighbourhood investment funds.
"The fund investors are able to purchase assets in a diverse portfolio of properties within these communities without having to incur the associated expense, concentration risk and management headaches of being a full-scale property manager and landlord. To my knowledge, no other fund or investment vehicle for investing in NYC residential real estate offers these advantages," says Weissman. "Unlike an investment in a REIT or other type of sector fund, CityShares investors will have complete transparency on all their properties in the fund including rent rolls, payment histories, and other relevant information."