Pooled funds made up 28 of New York’s 64 real estate raises

New York sponsors filed or amended Form Ds for 64 real estate offerings between Oct. 4 and Nov. 2, and 28 of them were pooled investment funds ^[6]. California sponsors filed 70, and only eight were pooled funds ^[6].

Thirty-one of the New York offerings listed no fixed target, against 18 in California ^[6]. That is common for evergreen and institutional funds that keep taking money.

New York’s money comes in large checks from few investors

North Haven Real Estate Fund XI Global-T reported $3.23 billion sold, and its filing says that total “includes sales made by the Issuer’s parallel vehicles and feeder funds” ^[1]. It lists Morgan Stanley Smith Barney as the seller and estimates $1.3 million in commissions ^[1].

Brookfield Real Estate Solutions II-A reported $834.4 million from 18 investors ^[6]. We calculate a median of about $448,000 sold per investor across New York offerings, leaving out five North Haven vehicles that each report the whole program, against about $311,000 in California ^[6].

California mixes a $340 million raise with a 1,255-investor lender

Belay Real Estate Ventures Fund IV in Los Angeles made its first sale Sept. 30 and reported $340 million from three investors toward $750 million, counting its parallel funds ^[2].

Sacramento’s Socotra Fund, selling since 2013, reports $257.5 million from 1,255 investors with a $25,000 minimum ^[3]. Nineteen California offerings set a minimum of $25,000 or less ^[6].

Permits for apartment buildings jumped 69% in New York

New York permits for homes in buildings with five or more units reached 25,859 from January through September, up from 15,298 a year earlier, a 69% gain we calculate from Census data ^[4][5]. California’s rose to 36,615 from 29,556 ^[4][5].

How to use this

For individual investors

1. Read the amount-sold clarification before you treat a big number as one fund’s raise. North Haven’s $3.23 billion covers parallel and feeder vehicles ^[1], and Belay’s $340 million counts its parallel funds ^[2].
2. Ask a long-running lender how many of its investors have asked for their money back and how long redemptions took. Socotra has sold to 1,255 investors since 2013 ^[3], so ask for its redemption history year by year.
3. Ask what a pooled fund charges at the feeder level as well as the main fund. Belay’s filing says only that an affiliate of its manager earns a management fee and a performance allocation ^[2].

For developers raising in either state

1. Show where your project sits in the permit pipeline. New York authorized 10,561 more multifamily units through September than a year earlier, we calculate ^[4][5], so investors could see more lease-ups competing with yours.
2. Match your raise to the check sizes in your market. We calculate a median of about $311,000 per investor in California and about $448,000 in New York, excluding North Haven ^[6].
3. Name your placement agent and its commission on the Form D, as North Haven did with its $1.3 million estimate ^[1]. Sixty-four New York filings and 70 California filings are public on The Portal’s fund filings page ^[6].