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The Israelis discovered Michigan
Israeli real estate man Shlomi Baranowski and attorneys Doron Afik and Shlomi Turgeman are setting up a residential real estate investment fund in the United States. They expect returns of 10% –15%
Israeli real estate man Shlomi Baranowski, owner of real estate investment firm SB Capital, has teamed up with attorneys Shlomi Turgeman and Doron Afik, senior partners in Afik-Turgeman, to establish a fund for private investors in the rental housing industry in the United States. Calcalist has learned that the fund, to be called the Afik-Turgeman Investments Fund, has raised an initial sum of $ 10 million to be invested in private residences and is planning additional fundraisers from Israeli investors.
In addition to initial borrowing from private clients, the fund is in contact with institutional bodies from Israel for investment in the new fund. The fund's leaders said yesterday that it will focus on investments in Michigan and that the perception that leads them is that of raising many investors at a low entry level relative to this area, which stands at only NIS X,000. The maximum investment for a private investor will be NIS X million.
According to them, the fund is intended primarily for investors interested in a medium-term financial investment of 3-5 years. Turgeman, who serves as chairman of the fund's board of directors, said the fund would spread risks across many assets. In addition, the fund's heads estimate a projected annual return of over 10%.
SB Capital currently employs 100 in the United States specializing in housing and investment investments. So will the company for the new fund. The company explained yesterday that it locates assets, renovates them, then maintains and operates them as rental properties, renting them out to renters after checking their ability to pay up to the exit.
Baranowski, who is not recognized in the real estate market in Israel, is an Israeli citizen, a graduate of Unit 8200 of the Intelligence Corps who made his first fortune in investing in the real estate market in Western Europe in the mid-90s. He later expanded his business to Eastern Europe and also acted as an entrepreneur leading construction projects. Following the global financial crisis in 2008, he moved most of his activities to the United States. SB Capital, which he owns, has so far invested in 350 properties in southeast Michigan, most of them detached houses. The company also made investments for Israeli investors.
In response to Calcalist's questions about the high level of risk in housing investments in the United States, Baranowski said yesterday: “We are focused on the sector in which we have gained experience working with the industry and the authorities. We have chosen Michigan as our investment hub after examining various markets in the United States in recent years. The housing market in Michigan relies on heavy industries operating in it and which have recorded a very nice recovery in the past year. ” According to him, "These are properties with an occupancy of about 98% that are currently on the shelf. The window of opportunity in this area will close soon. "
Published in Calcalist
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