Developers of LIC Skyscraper Tap into Crowdfunding
Simon Baron Development is turning to an unusual resource to help finance a planned 467-unit rental tower in Long Island City. Crowdfunding startup CityFunders, launched by brothers Albert and David Behin, will raise $1M in equity for the project. This is a rare move, as most real estate crowdfunders prefer smaller flips rather than large-scale construction projects. CityFunders predicts an internal rate of return of 10%-11% over a holding period of four to five years, The Real Deal reports. The Behin brothers launched CityFunders Thursday with 29–26 Northern Blvd as its first offering. The New York-centric startup will pre-guarantee investments using a $40M credit line, then assume the risk of getting investors online. Simon Baron paid $54M for the site last year. [TRD]
