ArborCrowd, the first crowdfunding platform launched by a real estate institution, announced today that it will be featured in a case study developed by the NYU School of Professional Studies (“NYUSPS”) Schack Institute of Real Estate. The study, which examines the rise of real estate crowdfunding, and ArborCrowd’s differentiated business model and go-to-market strategy, will be integrated into the Schack Institute of Real Estate’s 2019-2020 curriculum, and will serve as a foundation for students to learn about the nascent crowdfunding sector within the broader context of commercial real estate.
“NYU’s Schack Institute is one of the most respected real estate programs in the nation and has been bringing industry knowledge to students for over 50 years,” said Adam Kaufman, co-founder and COO of ArborCrowd. “It is an honor to serve as the focal point of this case study, which fosters students’ critical-thinking skills and provides insights that dive deep below the surface to examine risks, identify opportunities, and explore this new and largely untapped source of capital. This exercise is critical to helping the next generation of real estate professionals understand and appreciate the nuances and potential of the real estate crowdfunding industry, which is projected to grow exponentially over the coming years.”
Titled Real Estate Investment Meets the Crowd, the Case of ArborCrowd and Real Estate Crowdfunding, the case study focuses on Mr. Kaufman’s experiences starting ArborCrowd after observing the missteps of other platforms that quickly came into existence following the passage of the Jumpstart Our Business Startups Act of 2012. It highlights the challenges that many of these early platforms faced, including being structured in a way that fails to provide investors with clarity on their investments; being forced to prioritize quantity of deals over quality due to pressure from venture-capital benefactors; and being led by technology entrepreneurs rather than seasoned real estate professionals with the required knowledge and experience to navigate complex transactions.
“ArborCrowd entered the market as the only crowdfunding platform associated with an established real estate company,” said Sam Chandan, the dean of NYU Schack. “How its founder leveraged that differentiator presents an excellent case study opportunity for students and professionals interested in innovation and disruption in real estate finance.”
As a staunch and vocal advocate for responsibility, transparency and investor protections in the real estate crowdfunding industry, Mr. Kaufman has authored several articles and has spoken at prestigious educational institutions across the U.S., including The Wharton School of the University of Pennsylvania, New York University, Harvard University, and Columbia Business School. He will continue to lead the effort to better the real estate crowdfunding industry through advocacy and the advancement of educational initiatives.
ArborCrowd is the first crowdfunding platform launched by a real estate institution, opening up an exclusive network to a new class of investors. As part of The Arbor Family of Companies, which includes Arbor Realty Trust (NYSE: ABR), a leading publicly traded commercial mortgage real estate investment trust, ArborCrowd is backed by more than 30 years of leadership experience. ArborCrowd reviews more than 500 deals a year from its proprietary network and only chooses the ones that survive its rigorous underwriting process. ArborCrowd prefunds capital to a deal prior to launching the offering to investors. This ensures the deal closes and allows ArborCrowd to offer investors accurate and detailed information about the property. Additionally, ArborCrowd chooses to present one deal at a time, so there is no guessing what property investors will actually own.
About the NYU School of Professional Studies Schack Institute of Real Estate
The NYU School of Professional Studies (NYUSPS) Schack Institute of Real Estate was founded in 1967 at the initiative of prominent members of the New York City real estate community, who encouraged NYU to establish an academic center that would provide a world-class education for industry professionals. More than 50 years later, the Schack Institute is at the forefront of real estate education and is recognized globally as one of the world’s leading centers of real estate research and pedagogy. Across the Institute’s graduate degree programs—notably the MS in Real Estate, the MS in Construction Management, and the MS in Real Estate Development—as well as a rapidly expanding undergraduate degree program, enrollment has grown to nearly 1,000 full- and part-time students from across the United States and nearly 50 other countries. In addition to its flagship degree programs, thousands of working professionals enroll in the Schack Institute’s executive education, Diploma, and Career Advancement courses each year.
An anchor of real estate academia’s engagement with industry, the Institute is home to the REIT Center, the Center for the Sustainable Built Environment (SBE), and the newly established Urban Lab. In addition, the Institute hosts national industry events, including annual conferences on real estate capital markets and the REIT sector. Under the direction of the Schack Institute’s faculty members, ongoing applied research at the Institute spans an exceptional range of issues in real estate development and investment, urban economics, and market structure and regulation. For more information about the NYUSPS Schack Institute of Real Estate, visit sps.nyu.edu/schack.