The Faena House is one of Miami's most coveted addresses. Dubbed "The Billionaire Bunker," the ultra-luxurious oceanfront property is home to 47 units that start at $2.5 million. But, what if said that you could own in the same exclusive property as Goldman Sachs CEO Lloyd Blankfein, Citadel CEO Ken Griffin, and Apollo Global's Leon Blank for just $260.
No, this is not a trick. It's a unique concept by venture-funded start-up Compound. How does it work? Well, Compound identifies condominiums that are suitable for investment, and then "slices" each property into 100,000 shares. Investors can purchase shares (as little as $50) through an SEC-qualified securities offering on the company's app. Compound then manages and leases the properties as short-term rentals or traditional yearly tenants. Investors then receive dividends and can build wealth through capital appreciation.
Their elite access to Faena House is just the most recent and affluent unit listings. Other homes on the roster include a one-bedroom condo with water views in the Brickell market of Miami, a lake-view one-bedroom apartment in Austin, and a warehouse loft with oversized windows in the Clinton Hill neighborhood of Brooklyn.
Pooling money to invest in real estate is nothing new. It's just that buyers of these investment condos are typically high-net-worth individuals and corporations. In fact, about $840 million worth of condos are purchased by investors every year in New York City alone.
"I believe that more people should be able to own residential real estate in the cities where they live and work. Rent regulations may provide relief to a few, but ownership is what breeds true financial security. And then I built Compound," CEO Janine Yorio said in a statement "We can enable a generation of renters to become owners without impeding their freedom or saddling them with enormous financial commitments. Most importantly, we can radically reshape the ownership fabric of the cities where millions of people live and work."
With $2 million in investments, the real estate start-up estimates it technology is hoping to create over $10 billion a year in new demand for condo properties nationwide.