Compound Manhattan Residential is a real estate thematic fund (ReTF) that acquires, rents, and manages a diversified portfolio of residential properties in Manhattan.
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 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 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.
Over the past 20 years, the median price of a Manhattan condominium has increased by more than 300% :
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.
Buy and hold investment strategy
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.)
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.
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).
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.
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.