New Lab Pre-Development Bridge Loan

12.0%
gross ann. return*
0 mo.
term remaining
B
Investment Complete
Current Ann. Return 12.0%
Accrued Ann. Return 0.0%
Gross Ann. Return* 12.0%

Investment Details

Current Ann. Return 12.0%
Accrued Ann. Return + 0.0%
Gross Ann. Return* 12.0%
Term Remaining 0 of 9 mo.
Min. Investment $5,000
Investment Size $500,000
Underlying Security Mezzanine Debt

Investment Summary

This is an opportunity to invest in a series of Notes ("Notes") tied to a bridge loan in the pre-development of New Lab, a one-of-a-kind 84k SF collaborative high-tech design and prototyping center in the heart of the Brooklyn Navy Yard. The sponsor, Macro-Sea, has been conceptualizing New Lab and this project since 2011 when they first visited the site.

Key Deal Points

Personally Guaranteed by Sponsors

The Sponsors David Belt of Macro Sea and Scott Cohen of New Lab have personally guaranteed the $500k bridge loan. David Belt has more than 20 years of experience as a principal and successfully developed over $1 billion in assets.

Low Leverage

The bridge loan of $500k is senior to more than $3 million in pre-development equity that has gone into securing the long-term ground lease, obtaining entitlements, and completing the design work.

Structured Take-out

The bridge loan has a term of 9 months but is projected to be taken out within approximately 6 months by a $10.5M senior construction loan. The terms of the construction loan have been agreed upon and the final loan documents are currently in progress.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 12.0%
Term 9 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
B2
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 1-49% 1
Capital Junior to Fundrise 40% or more 1
Location Secondary 2
Occupancy Vacant 3
Development Phase Ground-up 3
Sponsor’s Track Record $250 million or more 1
Personal Guaranty Yes -1
Overall 10 B2

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
Tax Credits Historic Tax Credits 13.3% $3,733,445
Equity Sponsor 17.9% $5,000,000
Grant NYC Capital Grant (FY14) 14.3% $4,000,000
Grant NYC Capital Grant (FY15) 5.4% $1,500,000
Grant NYC Regional Council (FY14) 11.6% $3,250,000
Bridge Loan Fundrise 1.8% $500,000
Senior Debt TBD 17.9% $5,000,000
Senior Debt PFNYC 17.9% $5,000,000
Total 100.0% $27,983,445

Property Summary

New Lab will be a $28M rehab and renovation of a former ship building facility in the Brooklyn Navy Yard. Once complete the space will total 84,000 square feet will offer tenants a unique mix of private, shared, and public space. The concept of New Lab is to foster innovation in design, prototyping and modern manufacturing. The property itself has already received over $20M in improvements from the BNYDC including rebuilding the base structure, replacing the roof, and upgrading all utilities.

Address 63 Flushing Ave
City & State Brooklyn, NY
Neighborhood Brooklyn Navy Yard
Product Type Mixed-Use / Shared Manufacturing
Project Phase Ground-Up / Historic Renovation

Market Summary

Located between the Williamsburg and Fort Greene neighborhoods, The Brooklyn Navy Yard is a modern industrial park with over 4 million square feet of space which is owned by the City of New York and managed by the Brooklyn Navy Yard Development Corporation, a not-for-profit with the mission to promote local economic development. BNYDC has overseen the modernization of the 300-acre former ship building facility turning it into a new hub for manufacturing, supporting over 330 industrial tenants and employing 6,400 individuals. As the growth in Brooklyn has continued to push out industrial users in favor of more residential space, the Brooklyn Navy Yard has become a highly sought after location for affordable industrial space.

About the Sponsor

David Belt

Principal

Macro Sea is a real estate developer located in New York City. They have developed a diverse portfolio of projects in the past 10 years including educational, arts, retail and residential buildings and campuses. They have worked in Rome, Paris, Salamanca, Dublin, Princeton, Philadelphia and New York City. Their portfolio includes student residence projects, condominiums, educational facilities, arts facilities and light industrial space.

View full profile

Fee Schedule

Gross ann. return* 12.0%
Servicing and administration fee -0.3%
Net ann. return to investors 11.7%

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