Brooklyn Multifamily Rehab

17.4%
gross ann. return*
term remaining
C
Current Ann. Return
Accrued Ann. Return
Gross Ann. Return* 17.4%

Investment Details

Current Ann. Return
Accrued Ann. Return
Gross Ann. Return* 17.4%
Term Remaining – of –
Min. Investment $5,000
Investment Size $300,000
Security Type Equity

Key Deal Points

Ability to increase rent on stabilized unit

NYC allows 3-4% annual increases on rent stabilized units however the major rent increases will come from vacating tenant, destabilizing the units and increasing rent up to 3x.

Downside protection

Rent stabilization provides the properties a baseline income. In a bear case scenario with no turnover, there is very low risk of reduced current rental income to investors.

Exit strategy

When the rental income has been sufficiently maximized, we will investigate a sale of the building. Another option would include refinancing the building after a suitable amount of time. If the property is performing well, this option allows investors to capture more upside as the neighborhood continues to grow in value.

Fundrise Rating

The Fundrise Rating is a letter rating ranging from A to E that provides investors with the ability to easily compare investments across the Fundrise platform. The Fundrise rating measures the relative risk-adjusted return of an investment. Learn more
C1
A
1
2
3
B
1
2
3
C
1
2
3
D
1
2
3
E
1
2
3
Category Assessment Points
Capital Senior to Fundrise 50-59% 2
Capital Junior to Fundrise 30-39% 2
Location Primary 1
Occupancy Leasing 2
Development Phase Value-Add 2
Sponsor’s Track Record Less than $50 million 3
Overall 12 C1

The information contained in the Fundrise Rating is for informational purposes only. It is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These ratings are not intended to be, nor should you interpret them to be, a prediction of how a particular investment will actually perform. You should always carefully consider investments in any security and be comfortable with your understanding of the investment. You may also consider consulting investment professionals.

Risk-Adjusted Return

Capital Structure

Type Source % of Total Amount
Common Equity Sponsor & Private Investors 33.3% $800,000
Common Equity Fundrise Offering 12.5% $300,000
Senior Debt Country Bank 54.2% $1,300,000
Total 100.0% $2,400,000

Property Summary

151 Dupont (“Dupont”) offers the opportunity to buy a cash flow positive asset in the heart of one of the fastest gentrifying neighborhoods in the five boroughs. It is an 8-unit wood frame multifamily building. Dupont consists of 4 floors with 2 railroad style units per floor.

Address 151 Dupont Street
City & State Brooklyn, NY
Neighborhood Greepoint
Product Type Multi-Family / 4-Story Walkup
Project Phase Value-Add / Rehabilitation

Market Summary

We have identified areas of Brooklyn on the cusp of gentrification where we expect to see dramatic growth in rents and land value. Within these areas, we look to purchase under managed rental buildings that will provide 5% to 6% returns upon purchase (if we are unable to add any value). Low risk buildings that are profitable in all macroeconomic environments because all of our tenants live in below market value rent stabilized apartments where rents cannot go lower. Upon purchase, we have an easily executable plan of vacating and then renovating apartments in order to charge market rent for our area and achieve a +15% IRR.

About the Sponsor

David Manheimer

Partner

Benji Kohn

Partner

Brooklyn Standard Properties was founded in 2013 by partners David Manheimer and Benji Kohn to invest in and renovate “value add” properties throughout Brooklyn. Over the past 18 months Benji and David have successfully identified, contracted andclosed on 3 properties (22 units) totaling ~$8m in project value.

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Other Past Investments

DC Luxury Condo Loft Conversion

Washington, DC
D
Gross Ann. Return* 15.0%
Term Remaining 0 mo.
Underlying Security Preferred Equity

Atlanta Condo Pre-Development Loan

Atlanta, GA
B
Gross Ann. Return* 14.0%
Term Remaining 0 mo.
Underlying Security Senior Debt