Compound's Manhattan
Condominium Fund

Compound Manhattan Condominium is a real estate thematic fund (ReTF) that acquires, rents, and manages a diversified portfolio of residential condominium units in Manhattan.

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Invest in Manhattan real estate today

Compound developed its Manhattan Condominium ReTF to build wealth the same way that
the world’s shrewdest investors do - by acquiring a portfolio of Manhattan properties and
holding them for the long term.

Compound is bullish on Manhattan residential real estate

Manhattan residential real estate has historically outperformed other comparable asset classes like the S&P 500 and even gold. In the past 20 years, the median price of a Manhattan condominium has appreciated 464%.

There is a window of opportunity to buy now

There is significant new supply of condominiums coming online with more on the way. The market has been weak and sellers are higly negotiable, which makes now a great time to make a long-term investment.

The fund is targeting 10 to 12% annual returns

The bulk of the return will come from price appreciation, with a smaller component from rental income. Compound will seek to maximize returns by buying units in bulk and at a discount and by using short-term rental strategies when appropriate.

Manhattan condominiums have outperformed stocks and bonds

Over the past 20 years, Manhattan condominium prices have appreciated more than twice as much as stocks or bonds. They have outpaced nearly all economic indicators and have performed well throughout depressions, recessions and corrections.

Manhattan Condominium Median Sale Price
S&P 500
Bloomberg Barclays US Aggregate Bond Index
19982000200220042006200820102012201420162018100200300400500600464%188%165%
Source: Douglas Elliman Q4 2017 Sales Market Report. January 2018Source: Yahoo Finance. December 27, 2017Source: Lazard Asset Management. 1998-2017* 20 year period selected for illustrative purposes; additional years and data are available upon request.

Why invest in Manhattan condominiums now?

The Manhattan condominium market has softened significantly, which means distressed sellers are eager to close deals. This makes it an opportune time to invest in residential real estate for the long term.

Manhattan landscape

The gold standard
in real estate investing

Manhattan is a 22-square mile island, surrounded by densely-populated urban
and suburban areas, with an 834-acre park at its center. Historically, the demand
for Manhattan apartments is high while the supply is limited, making it some of
the world’s most coveted real estate.

Primary Investment Objectives

Buy and hold investment strategy

  • Acquire residential condominiums in Manhattan that we believe are likely to generate significant long-term appreciation and cash flow.
  • Maximize the potential for capital appreciation. We will invest in properties at below-market values, in neighborhoods with high-growth potential, and in properties available from distressed sellers or who face time-sensitive deadlines.
  • Lease properties to residential tenants on a long-term basis (12-month leases) or by operating short-term furnished rentals in compliance with local laws.

Real estate portfolio

We have identified the following investment opportunities. We will make property acquisitions on a rolling basis as new capital is invested in the fund. Below are some indicative transactions; however, due to market timing, these may not be the investments which we ultimately acquire.

Apartment image

Bulk Condominium Deal

Financial District

Investment Highlights

Property Type: —

Purchase Price: —

Price per Square Foot: —

Market Price per Square Foot: —

Apartment image

Bulk Condominium Deal

Lower East Side

Investment Highlights

Property Type: —

Purchase Price: —

Price per Square Foot: —

Market Price per Square Foot: —

* These properties are indicative of what our Manhattan condominium portfolio will look like.

Institutional-quality
fund management team

Compound Manhattan Condominium Fund is jointly managed by members of the Compound team and Hudson Realty Capital. Combined, the investment management team has a broad range of expertise in sourcing, leasing, selling and asset/property management of Manhattan residential properties.

Since inception, Hudson has managed $4.5 billion in external capital across nine discretionary real funds.

Hudson Realty Capital has acquired and managed over 5,700 apartments in New York City in 66 different buildings throughout the Bronx, Queens and Brooklyn.

David Loo

30+ years of institutional real estate investment experience

  • Co-Founder, Hudson Realty Capital
  • Credit Suisse, Managing Director
  • Wharton MBA, Wesleyan

Richard Ortiz

30+ years of institutional real estate investment experience

  • Co-Founder, Hudson Realty Capital
  • Credit Suisse, Managing Director
  • University of Connecticut

Perry Freitas

16+ years institutional real estate investment experience

  • Due diligence and financings
  • Deal negotiation and origination
  • Marist College

Andrew Bloom

General counsel for Hudson Realty Capital

  • Sidley Austin LLP
  • J.D from Fordham University
  • B.A. from University of Albany

The perfectly uncorrelated
asset to diversify your portfolio

Manhattan condominium prices have historically been
uncorrelated to both the equities market and the bond market.

Correlation between Manhattan Condos & Stocks: 0.007.

Correlation between Manhattan Condos & Bonds: 0.085.

Manhattan Condominium Median Sale Price
S&P 500
Bloomberg Barclays US Aggregate Bond Index
-50%-40%-30%-20%-10%0%10%20%30%40%50%19982018
Source: Douglas Elliman Q4 2017 Sales Market Report. January 2018Source: Yahoo Finance. December 27, 2017Source: Lazard Asset Management. 1998-201720 year period selected for illustrative purposes; additional years and data are available upon request.

Fund details

Highlights of Compound Manhattan Condominium Fund are provided here.
For full details, please download our full set of documents or contact us.

Targeted Returns

Compound Manhattan Condominium ReTF is targeting 10 to 12% annual returns. Most of this return will come from long-term price appreciation. This ReTF will also generate a nominal yield from rental income. (However, there is no guarantee that the fund will achieve this targeted return.)

Liquidity

Compound intends to provide investors with liquidity by applying to list our shares on NYSE or Nasdaq after this ReTF becomes eligible. Once the ReTF shares have been listed on an exchange, they will be fully transferable like any other publicly listed stock. Until then, there are restrictions on transferring the shares.

Minimums & Eligibility

Compound is currently offering a pre-IPO private placement for this ReTF that is open to U.S.-based or foreign institutions, family offices, and “accredited investors” (under Rule 501(a) of Regulation D). The minimum investment amount for this ReTF is $25,000 (2,500 shares).

Fees

Asset Management - 1.0% of equity value (paid quarterly)

Acquisition - 1.0% of property purchase price

Equity Incentive Awards (Promote) - 15% of the total annual return subject to a 6% hurdle, payable in shares to the Fund Manager.

How to invest

Reservations are a simple way to indicate your interest in investing in Compound's Manhattan Condominium ReTF.

Early investor incentives are available. See Offering Summary for details.

Fund FAQs

Learn more about becoming an investor

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