Posted Jan 27, 2015, 7:42 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 51,900
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http://www.nydailynews.com/life-styl...icle-1.2093690
Investors can snag a stake in 3 World Trade Center for just $5,000 with new crowd funding initiative
Crowdfunding platform Fundrise is offering $2M in bonds that will finance the development
January 27, 2015
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Now, small time investors can own a piece of the new World Trade Center if they have $5,000.
Private investors can now snag some of the liberty bonds that will be used to bankroll the development of 3 World Trade Center, the third tallest tower on the Lower Manhattan site.
The stakes are available through crowdfunding platform Fundrise, which bought a $5 million share of the $1 billion in tax-exempt bonds liberty bonds sold by developer Larry Silverstein last year in order to finance the construction and is now reselling them to small-time investors who want a piece of the 80-story office tower.
Call it Kickstarter for commercial real estate. Investors, who have to meet SEC requirements, would be buying into a trust that holds an interest in a portion of bonds. Fundrise is looking for accredited investors who can put as little as $5,000 towards the project in return for a 5% tax-free gross annual return on their projected five-year investment, it said. The initial offering accounts for $2 million.
"We are proud to be able to give more people a chance to invest in this important, iconic asset," said Dan Miller, co-founder and president of Fundrise.
Fundrise's offering does not entail new money being put into the project, which is already fully financed by the initial bond sale and will start going up, despite having just one tenant signed on.
Crowdfunding is becoming an increasingly common means of funding new real estate projects. Just one block away from the World Trade Center site, crowdfunding platform the Prodigy Network is raising money for a new extended-stay hotel at 17 John St. The company already raised $25 million from U.S. and foreign investors for the purchase of the building last August.
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http://www.sddt.com/Technology/artic...s#.VMfpFNXF-XE
Crowdfunding Comes to NYC’s World Trade Center in $5,000 Slices
By David M. Levitt, Bloomberg News
Tuesday, January 27, 2015
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Got $5,000? You can invest in the 3 World Trade Center skyscraper under construction in lower Manhattan.
Fundrise, a real estate crowdfunding business, is inviting individual investors to put as little as $5,000 into bonds backing the 80-story tower, according to a statement e-mailed by Joshua Greenwald, a spokesman for the Washington-based company. The total cost for the Richard Rogers-designed building is projected to be $2 billion.
“We think the 3 World Trade Center investment offering is proof of the power of crowdfunding at work,” Dan Miller, co- founder of Fundrise, said in the statement. “We are proud to be able to give more people a chance to invest in this important iconic asset.”
Fundrise intends to raise at least $2 million for the tower. Investors are projected to receive a 5 percent tax-free annual return over five years, according to the statement.
They would be buying into an entity that holds an interest in a portion of bonds backing the construction that were sold late last year by New York Liberty Development Corp.
Investors must be accredited to participate, meaning they’re required to meet certain Securities and Exchange Commission criteria for income or net worth.
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