|Current Ann. Return||10.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||10.0%|
|Accrued Ann. Return||+ 0.0%|
|Gross Ann. Return*||10.0%|
|Term Remaining||0 of 24 mo.|
|Underlying Security||Mezzanine Debt|
This is an opportunity to invest in a series of Notes tied to the performance of Brooklyn Standard Properties ("BSP")’s acquisition and renovation of an existing four-unit apartment building located on North 8th St. between Bedford Ave. and Berry St. in the heart of Williamsburg, Brooklyn. One of the units is currently vacant with the other three all on month-to-month leases. BSP plans to begin vacating the remaining three units immediately after closing and then spend an estimated 6 months to rehab and renovate the units prior to releasing at market rate. The total project is projected to take less than 24 months to complete.
The building presents a layout amenable to converting the units to a 3-bedroom floor plan with a large loft-like common area, including brand new kitchens with stainless steel appliances, granite countertops, dishwashers, washer/dryers, new bathrooms, closets, lighting, doors, and moldings. Overall the updated design will be aimed at appealing to a younger and trendier demographic of Williamsburg today. The seller has owned the building for the last 30+ years, creating significant opportunity to improve the amenities. Major infrastructure including the roof and all the mechanicals have been updated within the last 5 to 7 years.
Based on surrounding market comparables, BSP expects that once renovated each unit should generate monthly rents of $4,700 or more, with a projected net operating income on the building of approximately $186,000 per year. Assuming a conservative cap rate of 5%, the property would be valued at roughly $3.7M (total project cost of $3.1M) providing for significant coverage of both initial principal and preferred return.
Interest payments on this series of Notes will be tied to the distribution schedule under the terms of the mezzanine debt investment as follows:
Years 1-2: 10% current interest (paid quarterly)
Brooklyn Standard Properties will have one option to extend the loan for a six (6) month period at a rate of 14% current over a 25-year amortization schedule.
Recent news: Mann Publication, September 2014
|Gross Annual Return*||10.0%|
|Capital Senior to Fundrise||50-59%||2|
|Capital Junior to Fundrise||30-39%||2|
|Sponsor’s Track Record||Less than $50 million||3|
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 Investment||8.0%||$250,000|
The property consists of a 4-story rental apartment building with a basement and four residential units (one unit per floor). The property was developed with existing improvements between 1887 and 1905. Upon renovation, the units will be three-bedroom, one or two-bathroom with in-unit washer/dryers, stainless steel kitchen appliances, granite countertops, and new finishes.
|Address||136 North 8th Street|
|City & State||Brooklyn, NY|
|Product Type||Residential / Multi-family|
|Project Phase||Value-Add / Renovation|
Williamsburg is one of Brooklyn’s most popular and exciting neighborhoods. It is one of Brooklyn’s top dinning, shopping, and nightlife destinations. The hipster hub has a diverse demographic that attracts people from all over the city. Bedford Ave. is the neighborhood’s main thoroughfare, anchored by the Bedford Mini Mall, and surrounded by shops, bars, and eateries.
The ‘Burg, as locals call it, also offers many seasonal events and activities, including Smorgasburg in East River Park, one of NYC’s best street fairs. Williamsburg also has a thriving music scene and boasts several local music venues. The neighborhood is known for fantastic beer and cocktail bars, and its dining options. Spanning everything from old-school steakhouse Peter Luger, to new hip eateries like Reynard, the Williamsburg restaurant scene is one of the best in Brooklyn.
There are several parks within the neighborhood that also offer a variety of activities. The three most notable parks are McCarren Park, East River State Park, and Cooper Park. The 35-acre McCarren Park is centrally located, and has baseball, soccer, and football fields, basketball, bocce, handball and tennis courts, ice skating rinks, playgrounds, running tracks, dog runs, recreation center and a newly renovated Olympic-sized pool. The 7-acre East River State Park offers incredible views of the Manhattan skyline, play areas, picnicking, barbeques, and music concerts. Lastly, Cooper Park, steps away from 81 Olive Street and 29 Orient Ave., features a Sunday Farmer’s Market and sports facilities.
In addition to the diversity of services and amenities located near the property, 136 North 8th Street also has excellent access to major transportation modes. Williamsburg is just one subway stop away from Manhattan via the popular L train. The L train was ranked the fastest growing train service in Manhattan for 2013.
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
|Gross ann. return*||10.0%|
|Servicing and administration fee||-0.3%|
|Net ann. return to investors||9.7%|