At Starcity we’re never afraid to launch into the unknown. We’re constantly looking for new ways to innovate and streamline our business in order to accomplish our mission: make great cities more accessible through the creation of comfortable communal homes that inspire more intentional living.
That’s why we’ve decided to partner with Republic, the leading private investing platform for investors seeking high growth potential. Together we’re launching our revolutionary new investment platform, invest.starcity.com. Accredited investors will now have standardized access to back select Starcity coliving development projects.
Just take it from our CEO Jon Dishotsky:
“We are thrilled to launch invest.starcity.com, so investors of all kinds have the opportunity to back Starcity developments. Typically, large-scale institutional investments are reserved for closed-door dealings, and we’re excited to open these deals up to democratize access for more people.”
The new platform launches with our upcoming cutting edge project in San Francisco’s South of Market (SoMa) district — Starcity Minna. The building is an impressive 16-story, 122,845 square foot ground up modular development. 53% of the 270 units are designated as deed-restricted below market rate affordable units. With rents as low as $900-$1000 a month, Starcity Minna will usher in much needed affordable housing to San Francisco.
To break down the importance of this project we turned to our Chief Investment Officer, Mo Sakrani. Here’s what he had to say:
“Despite the fall in rents in San Francisco this past year, the city remains largely out of reach for working-class professionals. Very few individuals can afford a $3,000 to $4,000 apartment, and we’re excited to deliver units that start in the $900-$1,000 range. This level of affordability has rarely been achieved in San Francisco. Furthermore, major investors and occupiers like Amazon, Blackstone, Google, KKR, Starwood, and others have announced investment initiatives into San Francisco during the pandemic, and Brookfield is going vertical on projects right next door to Minna, so the time is right. And despite noise in the headlines, San Francisco has been a consistently above-market return investment geography due to the supply constraints and demand drivers.”
With the San Francisco housing market now entering recovery from the downturn of COVID-19, we’re excited to share this opportunity far and wide. As we near the end of 2020, Starcity’s portfolio occupancy and collections metrics have returned to pre-COVID levels. Not only that, but we’ve seen coliving demand surge to levels higher than pre-pandemic levels. Historically, post-recession periods have been the best time to invest in real estate and this project will be making a splash in the Bay Area housing market.
Janine Yorio, Head of Real Estate Development at Republic, shared some thoughts on the current standing of the San Francisco market:
“San Francisco remains one of the strongest apartment rental markets in the country. We are delighted to provide access for individual investors into a well-located project poised to capitalize on the city’s next wave of growth and appreciation through technology powered by the Republic platform. Real estate is an $8.9 trillion market and it’s time for everybody to own a piece of it.”
Accomplishing the impossible: affordable upscale design
Starcity Minna will be one of the largest coliving communities to open in the greater Bay Area. With 15 residential levels, a welcoming ground floor lobby, and communal spaces ranging from a sweeping outdoor patio to a bike repair station, the community has been designed to help facilitate intentional communal living.
Each residential floor features 18 private units with ensuite bathrooms as well as 1,000 square feet of communal living space. From the open floor plan chef’s-style kitchen and dining area to the lounges and media rooms, members will have plenty of space to get to know their new housemates. To top it all off (literally), the rooftop will be a beautifully landscaped terrace with panoramic views of San Francisco.
With Starcity Minna we knew we wanted to accomplish two things: create a beautifully designed hygge-filled community while providing San Francisco with more affordable housing options. Now these two things don’t often go hand in hand easily. In order to accomplish both, Minna will be built using groundbreaking modular construction technology. Thanks to modular construction this project will experience both cost efficiency and speed expediency as manufacturing of the standardized modular unit layouts are completed in an off-site factory.
For Minna there will be four primary module types — all delivered to the site fully outfitted with furnishings, bathroom & kitchen fixtures, piping and wiring. These modules will then be placed over a concrete ground-floor podium and tied-together with a concrete elevator core. We believe that modular development is going to reshape the future of multifamily housing developments.
A new path for the future of real estate
With our new investment platform, Starcity is reimagining the entire spectrum of real estate:
- On the investment side by allowing people access to build wealth
- On the housing side by making living in cities accessible.
- On the construction side, by exploring modular to bring the cost of construction down
This template should create a path for major affordable housing in any city that has income inequality that has been further exacerbated by the pandemic. Real estate has long been a stodgy investment industry, designed to keep the main street investor out — Starcity aims to change that with this launch.
You can check out invest.starcity.com to learn more about the Minna investment opportunity. For updates on future investment opportunities for upcoming new developments you can subscribe to our monthly newsletter, The Orb. There you’ll also find everything from industry news, thoughts on the state of the coliving and multifamily markets, and of course, everything Starcity.