High-End NYC Real Estate... For Less

By Matthew Milner, on Wednesday, July 29, 2015

The value of all New York City real estate was recently estimated at $3 trillion.

Staggering wealth has been made here by real estate investors—

And continues to be made here by those who are fortunate enough to invest early in the next up-and-coming neighborhood.

So let’s take a quick tour of this trillion-dollar city...

Then we’ll show you how to get a piece of it for yourself—for far less than you might have imagined.

Heading Downtown

Picture yourself traveling south on Broadway.

First you see the bright lights of Times Square…

Then you roll past the bustling farmer’s market at Union Square.

Soon, the island of Manhattan starts to narrow…

On your left, in the midst of a lush park, is City Hall…

And to your right, 57 floors up, sits the green crown of the Woolworth Building.

You’ve now arrived in Downtown Manhattan—and it’s thriving:

According to the Downtown Alliance, a tourism and research group, the area’s residential population has doubled since 2001—

And commercial tenants are moving in, too, turning this neighborhood into one of the most vibrant and lucrative real estate markets on the planet.

In the last few years, more than 150 major tenants have relocated from other NYC neighborhoods to rent 8.5 million feet of downtown space.

And downtown isn’t just for Wall Street firms anymore:

More than 800 “T.A.M.I.” companies (Technology, Advertising, Media and/or Information) have moved in, too.

But all this recent activity pales in comparison to what’s happening right now…

The World Trade Center is coming back to life.

3 World Trade Center

Perhaps you’ve seen pictures of 1 World Trade Center, or you’ve visited in person.

Known as the “Freedom Tower,” this 1776-foot skyscraper is fast becoming a New York City landmark.

But soon, the Freedom Tower will be joined by other iconic skyscrapers in the re-imagined World Trade Center site.

One such building is 3 World Trade Center.

When it’s complete, this graceful tower will rise 1,170 feet above street level.

It will feature 2.5 million square feet of office space, and five levels of retail shops.

The developer is Silverstein Properties, a real estate company that’s responsible for developing and managing more than 35 million square feet of U.S. real estate.

And the architect is internationally acclaimed Richard Rogers.

Indeed, 3 World Trade Center is likely to become one of NYC’s newest landmarks…

And you can own a piece of it.

Real Estate Crowdfunding

At Crowdability, we typically write about Equity Crowdfunding, where you and other investors pool your capital together to invest in early-stage companies—and in exchange, you receive a stake in the business.

But today, our story is about Real Estate Crowdfunding, where you pool your capital with other investors in order to back real estate projects.

This has quickly become a massive industry:

In 2014 alone, websites like ProdigyNetwork, RealtyMogul and RealCrowd gathered $1 billion from investors like you and placed it into real estate projects.

And in 2015, the market is expected to expand to more than $2.5 billion.

And now a small piece of 3 World Trade Center is being crowdfunded…

And it’s being offered to investors like you.

The Investment

To finance the construction of 3 World Trade Center, its developer issued $1.6 billion of municipal bonds.

The minimum investment was $100,000, and the bonds were only available to qualified institutional buyers.

But now a high-quality real estate crowdfunding site called Fundrise is offering a way for smaller investors to get into the deal.

Fundrise is offering $2 million of these bonds to investors like you as part of a fund—and the minimum investment is just $5,000.

These are 5-year bonds, with a “triple tax-free” rate of 5%. In other words, they’re exempt from taxes federally, in the state of New York, and in the city of New York.

Accredited investors from any U.S. state can invest—so depending on your income bracket and where you live, the taxable equivalent yield could be as high as 7.6%.

Although the bonds have a 2044 maturity date, Fundrise intends to sell them and return the proceeds to investors after initial construction of 3 World Trade Center is complete—so, within five years.

The bonds are “Class 1,” senior to more than $1.4 billion of other capital in the project. Given their senior secured nature, Fundrise rates the bonds as “A3.”

You can read more about the rating scale here >>

High Quality “Class A”

It’s expected that 3 World Trade Center will be one of the highest quality “Class A” office buildings in Manhattan:

Its construction quality will be top-notch, as will its architecture.

It will also benefit from the fact that it’s easy to get to:

11 NYC subway lines all lead to the World Trade Center, as do the west side and east side thoroughfares of Manhattan, and the commuter trains from New Jersey.

Given all these attributes, the building will likely be in demand from the sorts of tenants who can afford to pay its steep rent…

As of today, in fact, 515,456 square feet of 3 World Trade Center have already been rented to the world’s biggest advertising agency: Group M Worldwide.

A NYC Landmark

If you’re looking for tax-free yield—and you’re excited to step into one of the most lucrative real estate markets in the world—you can learn more here >>

Keep in mind: if you’re considering an investment, make sure to read all the fine print.

Please note: Crowdability has no relationship with Fundrise or The World Trade Center. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.

Best Regards,
Matthew Milner

Founder
Crowdability.com

Comments

If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Crowdfunding Real Estate Realcrowd Crowdfunding For Yield Realty Mogul Prodigy Network Fundrise

Share This:
comments powered by Disqus