Prospect Heights (Brooklyn, NY) Multi Family Rehab

19.6%
gross ann. return*
term remaining
C
Cash Flowing to Investors
Current Ann. Return
Accrued Ann. Return
Gross Ann. Return* 19.6%

Investment Details

Current Ann. Return
Accrued Ann. Return
Gross Ann. Return* 19.6%
Term Remaining – of –
Min. Investment $5,000
Investment Size $325,000
Security Type Equity

Investment Summary

The investment goal is to modernize the six vacant units to fit a newer and trendier Brooklyn renter. The building presents a layout amenable to placing the kitchen and bathrooms in the middle of the units and bedrooms at the wings. The current ownership was owner occupying the first 3 floors so there is a significant opportunity to improve the amenities and finishes of the units.

Key Deal Points

Value-add strategy

The key elements are (A) we are turning the units into 3 bedroom apartments, (B) we will be duplexing the 1st floor into the basement to increase rentable square footage of the building, (C) improved fixtures and finishes and (D) renovated common areas like hallways and entrance.

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.

Potential additional upside

Our expectation for this property and its returns is based simply on renovating the vacant units. The building has 6 vacant units and 2 rent stabilized units. Our business plan does not expect to vacate the 2 rent stabilized tenants; however, if we do vacate those apartments, renovate and rent those units for market rents, then the returns increase dramatically with each apartment (our business plan shows these numbers).

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
C2
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 Vacant 3
Development Phase Value-Add 2
Sponsor’s Track Record Less than $50 million 3
Overall 13 C2

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.

Capital Structure

Type Source % of Total Amount
Common Equity Sponsor 32.5% $1,300,000
Common Equity Fundrise Offering 7.5% $300,000
Senior Debt Sterling National Bank 60.0% $2,400,000
Total 100.0% $4,000,000

Property Summary

533 Bergen Street is a red brick multi-family buildings consisting of 8 2-bedroom railroad style units. 6 of the units are vacant apartments, 2 units are rent stabilized. Bergen is located in the established neighborhood of Prospect Heights, Brooklyn.

Address 533 Bergen Street
City & State Brooklyn, NY
Neighborhood Prospect Heights
Product Type Multi-Family / 8-unit Apartment Bldg.
Project Phase Value-Add / Rehabilitation

Market Summary

Prospect Heights is Brooklyn’s answer to Manhattan’s Museum Mile — this burgeoning neighborhood boasts the Brooklyn Museum, the Botanic Gardens, and the enormous central branch of the Brooklyn Public Library. Known as Park Slope’s pretention-less neighbor, Prospect Heights casually matches its counterpart when it comes to entertaining. The neighborhood is home to myriad restaurants, bars, cafes, and boutiques that evince a distinctly “come as you are” Brooklyn vibe.

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.

View full profile

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