NEW YORK CITY—The Carlton Group has launched a real estate crowdfunding platform and website with more than $1 billion of investment opportunities here and in Europe. Carlton says the platform is intended to provide accredited investors from around the world an opportunity to invest in large, high-yielding, cash-flowing CRE investments.
Howard Michaels, Carlton’s chairman and chief executive, tells GlobeSt.com that a number of factors differentiate the Carlton Accredited Equity Crowdfunding platform from other crowdfunding vehicles. “We’ve been in business more than 20 years; we’re a large, established investment advisory bank and we didn’t just pop up and say ‘we’re going to raise equity and do this crowdfunding thing,’” he says. “We have unique access to cash-flowing real estate projects. We absolutely have global reach, and we’ll be accessing international investors,” many of whom will want to invest in the US, in particular Manhattan.
Carlton’s impetus for launching the platform, Michaels says, is that “a lot of high-net-worth investors have been saying that they want to invest $1 million or $5 million or $10 million, even if they can’t invest $50 million or $100 million like some of the big funds. We wanted to create a vehicle where high-net-worth investors could investigate, underwrite and invest in great real estate deals.” The opportunities available at the venture’s debut include deals in New York City, New Jersey, Las Vegas, Toronto and Madrid.
Carlton expects that investors will provide between $1 million and $20 million of equity apiece, with transaction sizes ranging from $20 million to $100 million. The company will co-invest its own funds in every transaction.
With access to more than $10 billion of deal flow annually, Carlton says it intends to select the best opportunities for the crowdfunding platform. All properties and potential transactions offered via the platform will go through a strict vetting process, and investors will only be able to invest after they have completed a thorough investigation of the relevant deal room due diligence, accessible through the website.