Brooklyn New York Industrial Value-Add

13.5%
gross ann. return*
0 mo.
term remaining
B
Investment Complete
Current Ann. Return 9.0%
Accrued Ann. Return 4.5%
Gross Ann. Return* 13.5%

Investment Details

Current Ann. Return 9.0%
Accrued Ann. Return + 4.5%
Gross Ann. Return* 13.5%
Term Remaining 0 of 36 mo.
Min. Investment $5,000
Investment Size $300,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in a series of Notes tied to the performance of a 22,500 square foot industrial building located in the East New York neighborhood of Brooklyn, New York. The property consists of 6 adjoining buildings, of which 5 are currently leased. Cayuga Capital Management ("CCM") has been in discussions with brokers in the area and intends to lease-up the remaining vacant space shortly after acquisition. Additionally, CCM plans to spend $250,000 for capital improvements to address deferred maintenance and $100,000 for tenant improvements to attract new tenants to the property.

Key Deal Points

Attractive Basis

The sponsor is purchasing the property for $94.30/sf. The replacement cost for a similar building could be upwards of $250/sf.

Emerging Market

The property’s location in East New York offers a cost effective alternative for industrial tenants who have seen their rent increase significantly in locations further west. Brooklyn remains the fastest growing of all the Five Boroughs of New York City according to The Census Bureau.

Experienced Local Sponsor

Cayuga Capital Management is a Brooklyn-centric developer with deep experience in the market. Cayuga owns over 15 properties in the Brooklyn market, including several larger projects in Bushwick and Williamsburg.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 13.5%
Term 36 mo.
Total Return*

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
B3
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 Secondary 2
Occupancy Leasing 2
Development Phase Value-Add 2
Sponsor’s Track Record $250 million or more 1
Overall 11 B3

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
Equity Sponsor 36.7% $983,720
Preferred Equity Fundrise Investment 11.2% $300,000
Senior Debt 52.2% $1,400,000
Total 100.0% $2,683,720

Property Summary

This industrial compound consists of 1 Lot and 6 buildings, which span along Van Sinderen Avenue between New Lots Avenue to Linden Boulevard. The total square footage of the buildings is 22,500 SF, the total size of the lots is 22,500 SF, all of which is zoned with Miscellaneous Gas or Garage usage, a sought after classification in industrial areas.

Address 723-747 Van Sinderen Avenue
City & State New York, NY
Neighborhood East New York
Product Type Industrial / Light Industrial
Project Phase Value-Add / Leasing

Market Summary

The Brooklyn market has seen significant growth amongst all asset classes over the past several years. Businesses, manufacturers and industrial tenants who were once tenants in the industrial markets of Williamsburg, Downtown Brooklyn and most recently Bushwick, have been unable to find affordable space as many industrial spaces continue to be converted to retail. The remaining spaces have thus become increasingly competitive among operators, increasing rents. The property’s location in East New York provides a more affordable option for tenants who have been pushed out due to demand in these gentrified areas.

About the Sponsor

James Wiseman

Principal

Jacob Sacks

Principal

Cayuga Capital Management LLC (“CCM”) is a real estate operating partner, development manager and property manager based in Brooklyn, New York. CCM identifies properties not operated at best and highest potential and invests to maximize returns. This is achieved through repositioning, renovation, or ground up construction.

View full profile

Fee Schedule

Gross ann. return* 13.5%
Servicing and administration fee -0.3%
Net ann. return to investors 13.2%

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