Brooklyn 7-Asset Cash-Flowing Multifamily

gross ann. return*
19 mo.
term remaining
Cash Flowing to Investors
Current Ann. Return 8.5%
Accrued Ann. Return 4.5%
Gross Ann. Return* 13.0%

Investment Details

Current Ann. Return 8.5%
Accrued Ann. Return + 4.5%
Gross Ann. Return* 13.0%
Term Remaining 19 of 36 mo.
Min. Investment $5,000
Investment Size $3,400,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in the acquisition of 7 multifamily assets with a combined total of 112-units located in Brooklyn, New York. The properties are all currently close to 100% occupied and cash flowing. In total, the properties consist of 101 rent stabilized units and 11 free market units. The sponsor is planning to increase the value of the properties by renovating certain units which will allow for incremental rent increases under the New York Rent Stabilized regulations.

Key Deal Points

Strong Current NOI

The asset is currently close to 100% leased and cash flowing with a 1.36x coverage ratio, including the current preferred return.

Below Market Rents

The sponsor is purchasing the asset with in-place rents more than 25% below what would be market rent today. This leaves room for significant upside through renovations and upgrades to increase allowable rent and further secure Fundrise's position. 

Core Submarket

Brooklyn is one of the most desirable submarkets in the country due to it's proximity to Manhattan. The investment is located in some of the fastest growing neighborhoods of Brooklyn including Bushwick, Prospect-Lefferts Gardens and Bedford Stuyvesant. 

Attractive Risk-Adjusted Return

13% is an attractive risk-adjusted return given the stabilized nature of the assets and highly desirable location.

Projected Return Calculator

Gross Annual Return* 13.0%
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
Category Assessment Points
Capital Senior to Fundrise 70-79% 4
Capital Junior to Fundrise 10-19% 4
Location Primary 1
Occupancy Occupied 1
Development Phase Stabilized 1
Sponsor’s Track Record $50-249 million 2
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.

Risk-Adjusted Return

Capital Structure

Type Source % of Total Amount
Equity Sponsor and LPs 12.7% $3,500,000
Preferred Equity Fundrise Investment 12.3% $3,400,000
Senior Debt 75.0% $20,700,000
Total 100.0% $27,600,000

Property Summary

The 7 properties consist of 101 rent stabilized units and 11 free market units. Below is a list of key information for each of the properties organized by address, number of units and neighborhood:

Address Multiple Addresses
City & State Brooklyn, NY
Neighborhood Multiple Neighborhoods
Product Type Residential / Condominiums
Project Phase Stabilized / Fully Occupied

Market Summary

As the largest borough in New York City, Brooklyn's economy is growing rapidly, fostered by thriving tourism and robust job growth. According to a 2014 study conducted by the State of New York, between 2003 and 2012 the number of businesses in Brooklyn grew by 21%. Additionally, private sector employment grew by nearly 20%, almost twice that of the greater City of New York.

About the Sponsor

Ryan Colbert

Managing Member

Chesky Engel

Managing Member

David Lubin

Managing Member

Inception Investors is a private real estate investment and operating company that was founded in 2012. The company is headquartered in New York City and has offices in Brooklyn and Manhattan.

View full profile

Fee Schedule

Gross ann. return* 13.0%
Servicing and administration fee -0.5%
Net ann. return to investors 12.5%

Other Past Investments

DC Luxury Condo Loft Conversion

Washington, DC
Gross Ann. Return* 15.0%
Term Remaining 0 mo.
Underlying Security Preferred Equity

Atlanta Condo Pre-Development Loan

Atlanta, GA
Gross Ann. Return* 14.0%
Term Remaining 0 mo.
Underlying Security Senior Debt