It’s been a busy year so far on Access IPOs, particularly on the Motif IPOs page. We’ve already seen 11 IPOs and secondaries so far in January and expect another 4 before the end of the month.
In an effort to continue to alert readers about fresh IPO deals on multiple platforms, today’s deal is brought to us by WR Hambrecht + CO. This company has had a hand in a few Reg A+ IPOs such as ShiftPixy, Elio Motors, and Arcimoto. But also played a role in the iconic Google IPO and others like Overstock.com, Morningstar, and Rackspace.
WR Hambrecht + CO is serving as underwriter for the upcoming NY Residential REIT IPO, an active Reg A+ IPO, aka a “mini-IPO“.
A company called Commencement Capital LLC has formed NY Residential REIT to:
to purchase, invest in, and manage a portfolio of residential properties located in Manhattan, which will provide both accredited and non-accredited investors with the ability to obtain exposure to Manhattan residential real estate.
NY Residential REIT IPO will use Regulation A to raise $1,000,000 to $50,000,000. The minimum investment required for individual investors is $1,000 to buy 100 shares at $10 each.
This capital raise is similar to what the established real estate crowdfunding platform Fundrise has already done with Regulation A to raise funds and buy real estate. The difference is NY Residential REIT will focus exclusively on New York City and trade on either Nasdaq, NYSE, or OTC.
One interesting connection with this deal is that the CEO of Commencement Capital LLC was behind a company called ETRE REIT which attempted to use the Loyal3 IPO platform to raise money to purchase a single office building in Boston. The deal never completed on the Loyal3 platform.
This time around, they plan to use the money to invest in multiple residential properties.
NOTE: This article is not a recommendation to participate in this IPO. Please do your own due diligence to determine if this opportunity is right for you.
Here are all the relevant links for the deal:
- WR Hambrecht + CO deal page
- SEC Offering Circular
- NY Residential REIT IPO Homepage
- Offering Summary
- Company Presentation
Though I am not planning to invest (due to my current lack of funds), it appears participants will invest in this deal via escrow in a similar manner to the BANQ platform offerings for the Myomo IPO and Fat Brands IPO. So you should have the option to transfer shares to your regular broker once the deal is complete.
The deal may not attract enough investor funds to be successful. It doesn’t, your money will be returned from the escrow.
This is a “pure play” on Manhattan real estate. Due to the narrow geographic scope and small size of this deal, expect a very high risk-return trade-off and volatility.
The experience of the management team and their ability to successfully invest in real estate in Manhattan plays an important role in the success of this company. Bios are available in the company presentation and SEC filing.
Click here to learn more about the NY Residential REIT IPO via WR Hambrecht + CO.