Compound Manhattan
Residential Fund

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

Become an investor

Invest in Manhattan real estate today

Compound developed its Manhattan Residential 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 323%.

There is a window of opportunity to buy now

There is significant new supply coming online. The market has been weak and sellers are highly negotiable. We believe this makes it a great time to make a long-term real estate investment.

The fund is targeting 12 to 15% 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 both stocks and bonds

Over the past 20 years, the median price of a Manhattan condominium has increased by more than 300% :

Manhattan Condominium Median Sale Price
S&P 500
Bloomberg Barclays US Aggregate Bond Index
2000200220042006200820102012201420162018100200300400500323%107%156%
Source: Douglas Elliman Q4 2018 Market ReportSource: Yahoo FinanceSource: Bloomberg* 20 year period of 1999-2019 selected for illustrative purposes; additional years and data are available upon request.

Why invest in Manhattan
properties now?

The Manhattan residential real estate market has softened significantly, which means distressed sellers are eager to close deals. We believe 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 properties 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.
* Dots on map are indicative of potential property acquisitions and targeted geographic dispersion of portfolio, but are not actual investments yet made by the fund.

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:   -1.7%

Correlation between Manhattan Condos & Bonds:   2.6%

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%19992018
Source: Douglas Elliman Q4 2018 Market ReportSource: Yahoo FinanceSource: Bloomberg* 20 year period of 1999-2019 selected for illustrative purposes; additional years and data are available upon request.

Fund details

General terms about the Compound Manhattan Residential ReTF fund are provided here.
For complete details, please view fund documents here or contact us by email at [email protected].

Targeted Returns

Compound Manhattan Residential ReTF is targeting 12 to 15% 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

Follow the link below to our investment portal or call us during normal business hours (Monday - Friday, 9:30 am to 5:30 pm EST) at +1 (646) 930-4503.

Fund FAQs