Inside Prospect Acquisitions’ Investment Strategy

In New York City real estate, the best opportunities rarely come with a “for sale” sign.

They do not appear on listing platforms. They are not widely marketed by brokers or driven through competitive bidding processes. Instead, they exist quietly beneath the surface — within long-held family assets, overlooked buildings, and properties whose full potential have yet to be recognized.

Uncovering them requires more than capital. It demands patience, persistence, and the willingness to engage long before opportunities become visible to the broader market.

That is the business Prospect Acquisitions has built.

Founded by Ilya Tolmasov and Danny Arnel, the New York-based investment firm specializes in sourcing off-market multifamily and mixed-use properties throughout prime neighborhoods in Manhattan and Brooklyn.

While much of the investment community competes for transactions already circulating in the marketplace, Prospect focuses on identifying opportunities before they ever reach it.

The firm’s strategy is rooted in relationships, direct owner outreach, and a core belief: Some of the best investments are never formally offered for sale. Instead, they emerge through years of market knowledge, consistent dialogue, and a willingness to pursue opportunities that may take months— or even years — to materialize.

That approach recently led Prospect to its purchase of 129 West 85th Street, a 10-unit free market multifamily building on Manhattan’s Upper West Side. The property never hit the open market. There was no formal marketing process, no bidding war, and no broad investor exposure.

It was precisely the type of opportunity Prospect targets — an off-market acquisition secured through relationships and persistence rather than competition.

A different view of risk

In its early years, long before acquiring assets in some of New York City’s most established neighborhoods, Prospect built its foundation in a segment of the market many investors prefer to avoid.

The firm acquired heavily distressed properties, including bank-owned foreclosures, underperforming buildings, and assets requiring substantial rehabilitation.

These transactions often came with operational complexity, deferred maintenance, and uncertain outcomes — conditions that, for many investors, outweighed the potential reward.

Prospect saw something different.

Rather than focusing on a property’s current condition, Prospect concentrated on what the property could become.

If an asset was in a fundamentally improving market and acquired at the right basis, many of the challenges that deterred others could be addressed through disciplined execution.

That approach allowed Prospect to acquire, renovate and stabilize more than 40 buildings.

The Prospect approach

At its core, Prospect’s investment philosophy is straightforward.

It is not about what a property looks like today, but what it can become over time.

The firm targets well-located assets where they can renovate, increase rents in free-market units, and improve operating inefficiencies.

Upside in below-market rents, potential for unit repositioning and strong underlying location fundamentals are all key components of what Prospect looks for in unlocking value.

Looking ahead

Today, Prospect continues to expand its portfolio across prime Manhattan and Brooklyn neighborhoods.

Higher interest rates, tighter lending conditions, and increasing regulatory pressure are weighing on New York City property owners.

Yet the firm believes these conditions are also creating a new wave of opportunity.

In 2024, Prospect Acquisitions launched a $100 million fund focused on acquiring value-add multifamily and mixed-use properties throughout prime Manhattan and Brooklyn. Following strong investor demand and an oversubscribed initial raise, the firm is now opening an additional round of funding.

To learn more about Prospect Acquisitions and its current investment offerings, accredited investors can reach out to info@prospectacq.com or visit www.prospectacq.com.