CrowdStreet: The Centra NYC

Real estate investment platform CrowdStreet announced an offering for an equity investment opportunity in a luxury apartment in Midtown, Manhattan, New York.

The Centra is located near Grand Central Station and the Wall Street Financial District. The 14-story, 164-unit, Class A residential property is being acquired in an off-market and direct-to-owner transaction by deal sponsor Dalan Management, which is seeking to recapitalize an 85% stake in the property at what is considered to be an above-market cap rate and below-market basis.

Midtown-East is a highly desirable submarket that has a strong demographic base with an average median income 150% above the U.S. average. The submarket has seen a post-COVID surge in demand. Since 2021, median rents in the submarket are up 24% and vacancy rates are near record lows at 2.5%. The Centra concluded a strong leasing year in 2022 with gross rents increasing by 15.8% and net rents up 28.5% on 95 new leases. 

The Class A luxury apartment building was fully renovated in 2018, including unit interior updates, facades and shared common areas. Community areas for residents include a fitness center, a rooftop deck, a lounge and a yoga area. Dalan Management plans to implement a capitalization project to improve upon the recent renovations with the goal of increasing the overall value and maintaining the ability to match the market’s renting rates. Additional passive income earned through two ground-floor retail spaces, a billboard contract, parking garage and a laundry contract account for 11.4% of the total revenue. 

Dalan Management is a real estate investment, management and operating firm with over 20 years of experience focusing on assets across New York City and key out-of-state markets. Included in the company’s $2.5 billion managed asset portfolio are over 3 million square feet of space across 76 properties. 

Dalan is a vertically integrated company that handles management and leasing of the property. This top-to-bottom approach has helped the company achieve over $3.5 billion in total portfolio activity since its inception in 2003. 

CrowdStreet will host a live webinar session at 1 p.m. Pacific Time on April 4.

The investment window will open 30 minutes into the webinar session.

The minimum investment for The Centra NYC is $25,000

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Photo courtesy of CrowdStreet