Soaring rent prices in New York City are nothing new. And expensive rent means small, local businesses have a difficult time putting down roots.
The co-op combines crowdfunding and a traditional cooperative model.
That's why a group of New York City residents decided to come together to create NYC Real Estate Investment Cooperative. The co-op combines crowdfunding and a traditional cooperative model to guarantee affordable rent for local business owners.
Anyone can participate in the program. Individuals buy a membership for as little as $10 and the co-op uses that money to buy commercial properties. The properties are selected democratically—each member gets to vote on which space the co-op buys. Then the cooperative controls who it rents to and how much is charged.
In the three months since NYC REIC was formed it has gained more than 200 members and generated $1.2 million in pledges.