|Current Ann. Return||7.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||7.0%|
|Accrued Ann. Return||+ 0.0%|
|Gross Ann. Return*||7.0%|
|Term Remaining||0 of 24 mo.|
|Security Type||Mezzanine Debt|
Corigin Manhattan Apartments (“CMA”) is a real estate investment platform that develops, acquires, manages, and repositions Manhattan-based, multifamily apartment buildings with individual acquisition prices below $20 million.
CMA is raising $1M of mezzanine debt in order to finance the renovation and expansion of a multi-family apartment building, with street level retail, in the heart of New York City’s East Village neighborhood. An investor should expect to earn a projected annual interest of 7% over the course of the investment, paid quarterly, with a two-year term.
The property is located in Manhattan’s East Village, one of the country’s most desirable neighborhoods with near-zero vacancy rates.
|Gross Annual Return*||7.0%|
|Capital Senior to Fundrise||1-49%||1|
|Capital Junior to Fundrise||40% or more||1|
|Sponsor’s Track Record||$250 million or more||1|
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.
|Type||Source||% of Total||Amount|
|Mezzanine Debt||Fundrise Offering||18.9%||$1,000,000|
In February 2013, CMA, through its affiliated entity, 137 Avenue C, LLC, acquired 137 Avenue C (the “Property”), a 3,540 gross square foot, four story walk up building comprised of six apartments and one ground floor commercial space for $2.67MM. The Property is located on the west side of Avenue C between 8th and 9th Streets in the East Village neighborhood of Manhattan. The six residential apartments (three studios and three 1 bedroom units) and the ground floor retail unit have been vacated since CMA acquired the Property.
The Property is located on a 1,500 square foot mid-block lot that measures 20 feet wide by 75 feet deep. CMA plans to redevelop the Property beginning in June 2014 by adding another residential floor, extending the retail to the rear of the lot line (adding 310 SF), and gut renovating the remainder of the building. The end result will be a five story 4,650 gross square foot mixed-use building comprised of four 3 bedroom / 2 bathroom residential units above ground floor retail (the “Development”). Inclusive of the Property acquisition and assumed redevelopment costs, the Development is anticipated to cost approximately $5.3MM. The issuance of a Temporary Certificate of Occupancy is estimated to occur 12 to 15 months after the start of renovation.
In the base-case underwriting, CMA assumes a $5,500/month rental rate for the 4 residential units and $100 per square foot for the ground floor retail; resulting in pro forma annual gross revenue of approximately $374,000 and pro forma Net Operating Income (“NOI”) of approximately $336,000 upon stabilization. Based on prevailing market cap rates of 4.5% - 4.75% for fully renovated comparable properties, CMA estimates the Property's fair market value upon completion will be between $7.0MM and $7.5MM.
The Property is currently encumbered by a $1.7MM first mortgage loan with Capital One. Through Fundrise, CMA will be offering a $1M mezzanine loan to accredited investors with a 7% annual interest rate and quarterly interest payments; repayment of both the first mortgage and mezzanine loan are expected to occur when CMA closes on permanent financing in the 3rd or 4th quarter of 2015. The mezzanine loan brings the Development's total loan-to-cost ratio to a conservative 51%, which equates to a loan basis of $581 per gross square foot. The remainder of the capital stack will be provided by $3.1MM in equity from CMA's balance sheet.
|Address||137 Avenue C|
|City & State||Manhattan, NY|
|Product Type||Mixed-Use / Retail, Residential|
|Project Phase||Value-Add / Renovation|
The East Village is one of New York’s most vibrant and storied neighborhoods and has become a cultural destination with active restaurants, shopping and nightlife. Benefitting from proximity to major educational institutions (New York University and Cooper Union) as well as shopping and working districts along Broadway (Soho) and Union Square, the area maintains one of the lowest vacancy rates in the country. The area is highly desirable for young, affluent professionals and the existing building stock, having initially been built for low-income families, is now in need of redevelopment in order to maximize real estate values and investment returns.
Corigin is a private holding company specializing in real estate and private equity. Corigin is based in New York and is headed by Ryan Freedman, its Chairman and Chief Executive Officer and Ed Baquero, its President. Corigin's core management has comprehensive expertise in real estate ownership, development and operations, owning and managing 5 million square feet of real estate with a concentration in New York City.View full profile