New York, NY CapitalFund Realty (CAPFUNDR) has launched one of the first online platforms that enables individuals to invest directly in institutional-quality real estate funds (www.capfundr.com). These funds will be available directly from the CAPFUNDR website, and will be offered at lower fees than non-traded REITs which are often the only real-estate oriented option for individual investors. CAPFUNDR, founded by veteran real estate executives Edward Yu and Jean-Michel (Mitch) Wasterlain, plans to roll out additional funds in the near future utilizing diverse strategies such as investing in multifamily, net lease, and retail properties.
"Our real estate funds will give individual investors access to the same properties and the same quality of management that benefit institutions," said Yu. "We leverage technology and our expertise to provide investors with a selection of high quality institutional-style funds that offer affordable minimum investment amounts."
CAPFUNDR also announced its first private equity fund offering, CAPFUNDR REIT Value Fund I, which will look to capitalize on market inefficiencies to purchase shares of non-traded REITs at prices below their intrinsic value. There are no brokerage commissions on the Fund and the minimum investment is $10,000.
“Non-traded REITs are a flawed model,†said Wasterlain. “The fees they charge make it nearly impossible to produce the returns that investors expect. But for individual investors who want to invest in real estate to diversify their portfolios, there have been limited choices. We are giving investors a better option with lower fees, credible management, and much more transparency."
"Our new fund can buy the shares of non-traded REITs, in some cases, for less than fifty cents on the dollar," said Yu. "At that price, they are a good buy for our investors.â€
Co-CEOs Yu and Wasterlain each have over 25 years of experience at noted real estate funds and public REITs. Yu has held senior positions at Starwood Capital Group, CBRE Investors, and Prudential Real Estate Investors. Wasterlain was CEO of ORIX Capital Markets and CIO of NorthStar Realty Finance, a listed public REIT.
The other two founders, Joe Cane and Mirza Joldic, are the firm's general counsel and chief technology officer, respectively. Cane has practiced law for over 20 years and specializes in representing start-up, early stage, and mature companies, as well as VC and private equity firms. Joldic was a technology consultant for the City of New York and for Prudential Real Estate Investors, where he focused on large inter-agency data integration projects and customized workflow applications.