Compound Manhattan
Residential Fund

We are currently preparing our Manhattan Cityfund for initial
public offering (or “IPO”). Please join our waitlist.

Summary

The Compound Manhattan Residential Fund acquires and manages a diversified portfolio of residential properties in Manhattan and operates them as either traditional 12-month rentals or short-term rentals when appropriate. Investors own shares in the fund, participate in property price increases and earn passive income derived from rents through quarterly dividends.

Portfolio *

Compound regularly evaluates new investment opportunities. We seek to continually grow our portfolio through acquisitions.

Total Valuation 1

$47,000,000

Total Units 2

86

Occupancy 3

98%

Square Feet 4

44,700

Portfolio *

Compound regularly evaluates new investment opportunities. We seek to continually grow our portfolio through acquisitions.

Total Valuation 1

$47,000,000

Total Units 2

86

Occupancy 3

98%

Square Feet 4

44,700

* Includes assets that we have agreed to acquire but have not yet acquired
1 Based on book value of the properties
2 Includes 3 commercial units
3 As of January 1, 2019
4 Approximate

Why Manhattan?

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.

The Manhattan residential market is currently soft

The Manhattan condo market is experiencing the longest lasting and deepest decline to have occurred in over 20 years.

Median Sales Price

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.

Investment Team

Our investment team has decades of New York City property investment and property management experience and collectively has invested and managed over $5 billion in transactions. Our property management team has managed over 1,000 New York City apartments as well as office buildings and hotels.

Janine Yorio
Janine Yorio
Jesse Stein
Jesse Stein
Bill Staniford
Bill Staniford
Manish Shah
Manish Shah
Christopher Wang
Christopher Wang