Compound Asset Management, a New York City–based real estate asset management and technology company, has launched the first ever ReTF (real estate thematic fund) — NY Residential.
ReTFs are designed to combine the thematic investment strategy of an ETF (exchange-traded fund) with the tax and diversification benefits of a REIT (real estate investment trust). ReTFs are a proprietary product of Compound and are intended to be listed on national stock exchanges once eligible, providing liquidity for investors.
NY Residential was created to offer exposure to the Manhattan residential real estate market, which has historically been too expensive for most investors to access. NY Residential will invest exclusively in Manhattan residential real estate including condominiums, single-family homes and apartment buildings with a focus on long-term capital appreciation.
For the first time, retail investors can own interests in high-quality Manhattan residential real estate with a minimum investment of only $1,000. Investments can be made directly on the NY Residential website.
“The price of a Manhattan apartment has outpaced the S&P 500 over the past 20 years,” says Jesse Stein, CIO of Compound. “There is good reason why ultra-high-net-worth individuals invest in apartments in Manhattan, and now smaller investors can participate in those economics as well.”
