Condo Development Land Loan 612

Type: Debt

Target: $3,500,000

Annual Return: 7.0 - 8.0%

Min-invest Amount: $10,000

Duration: 12- 18 months

  • Total:
Project Complete

Gross Financing: $3,500,000

* (Phase I. Financing: $2,000,000; the expected closing date is December 31st, 2018 or after fundraising accomplished)
* (Phase II. Financing: $1,500,000; the expected closing date is February 15th, 2019 or after fundraising accomplished)

Expected Return: 7.0%-8.0%/year

* Subscribers of 1 to 4 membership units gain 7.0% expected return; Subscribers of 5 to 19 membership units gain 7.5% expected return; Subscribers of 20 shares or more membership units gain 8.0% expected return.

Investment Type: Land Loan

Minimum Investment: $10,000 per/Membership Unit

Investment Duration: 12 to 18 Months

Payment Period: Semi-annual Interest Payment

Address: 47-11 90th St, Queen, NY, 11373

Region: Queens, New York

Land Area: 38,935 Square Feet

Zoning:R6B, C2-3

Building Area: 80,422 Square Feet

Appraisal: $10,000,000

- The developing project is located in Elmhurst, Queens, NY, where Chinese community is flourishing with high housing demands. The developer purchased the land at $5,800,000 in 2009 and divided the development into 2 phases. The apartments of Phase I. had been constructed and been sold in 2015; fund raised in 611 project will be used to Phase II. development.

- The location of the property is in the core area of Elmhurst with 10-minute walking distance to MTA M, R, and 7 route and 15-minute driving distance to Midtown Manhattan.

- The phase II. development involves 38,935 square feet of land area and 80,422 square feet of building area; the planned building will have 5 stories with 86 condominium units in which 16 are studios, 25 are 1-bedrooms, 35 are 2-bedrooms, and 10 are 3 bedrooms. The building will also contain 66 parking lots.

* As of October 2018, the final market vacant land value is $10,000,000; the appraisal was provided by Certified General Real Estate Appraisers at Five Boroughs Appraisal Group LLC., a third-party Appraisal firm; According to phase 1 report, the land owner has historical issues with the church. The developer has already made initial agreement with it and will begin to work on the issue.

Expected Schedule of Interest Payment
PaymentRound of InvestorPayment Date *1Interest-bearing DateInterest Due DateInterest PeriodNotes
First TimeFirst Round Investors12.31, 2018 1.1, 20196.30, 20196 MonthsPre-paid Interest
Second Round Investors2.15, 20192.16, 2019 6.30, 20194.5 MonthsPre-paid Interest
Second TimeAll Investors6.30, 20197.1, 2019 12.31, 20196 MonthsPre-paid Interest
Third TimeAll Investors12.31, 20191.1, 2020 6.30, 20206 MonthsInterest for 6-month extension *2

*1 If the Payment date falls on holidays or not working day, the payment will be processed by the next business day.
*2 After the end of the first 12 months,the developer has the right of a 6-month extension; the investors will receive the third time interest payments in case of the extension.

Sufficient Collateral

According to the third-party appraisal in October 2018, the final market vacant land value is $10,000,000. After construction completed, the estimated value of the property may exceed $70,400,000. The developer collateralizes the land for financing and also provides personal guarantee and firm’s equity guarantee.

High Priority on Financial Claim

The land loan originated by CrowdFunz has the first lien as the highest priority during foreclosure to secure the investors 'interests in the event of a default. The developer will also pledge its firm’s equity to reduce the default risk bearded by investors.

Reliable Fixed Income

The annualized return of the investment is 7.0% for subscribers of 1 to 4 membership units, 7.5% for subscribers of 5 to 19 membership and 8.0% for Subscribers of 20 or more membership units. The first interest payment is expected to be paid 6-month in advance.

Great Location

The property is located in the core area of Elmhurst with convenient transportation, only 0.6 mile away from Queens Center. The community has major Chinese population; surrounding retail environment is vibrant and is convenient for living.

Strong Market Demand

Based on the data provided by Trulia and Zillow, the growth rate of average condominium sales price at Elmhurst has been more than 30%, higher than the average of New York region, during 2012 to 2018. After small decline in the second quarter of 2018, the sales price has been raised again in the second half of 2018. The future trend is considered to be Bullish in the next 2 years.

Elmhurst Market Overview:

Median Sales Price

$653 per/ft²
Average Sales Price per SF

$33.70 per/ft²/year
Average Rental per SF per Year

* Data Source:Trulia, Oct 2017 to Oct 2018; Average Rental per SF per Year is calculated by the properties listed on Streeteasy, Oct 2018.

Demographics within the Zip code:

Zip Code: 11373
Total Population100,713
Average Age36
High School or Higher Education69.5%
RacesChinese, White, Southeast Asian, African
Average Household Income$65,470
White Collar/Blue Collar77.4%/22.6%
Family with Child34%
Average Family Member3.16
Principle Residence27.5%

* Data Source: ArcGIS Esri Database, and Property Shark, Oct 2018

Surrounding Property Construction:

- In the radius of 5 miles, There were 25 similar projects under developing during the last year. 17 projects were waiting for plan approval; 6 projects were under construction, and 2 projects had been completed and listed on the market.

- The project located at 88-08 Justice Ave is the largest development among the surrounding similar cases; the completed property will contain 183 residential units and a mixed-use community center. As of October 2018, the project was closing to its completion.

- The second largest development in the surrounding area is the project located at 69-02 Queens Blvd. The final property will have 17 stories and 561 units. As of October 2018, the project was waiting for final approval of the plan.

- In the total 25 similar projects, 13 projects have property value between 1 million to 5 million; 4 projects have property value between 5 million to 10 million; 6 projects have property value exceeded 10 million. There are 19 projects designed as condominium or rental apartment.

Comparative Analysis of Surrounding Peers:

Market Summary of Similar Surrounding Condominiums: (October, 2017 to October, 2018)

- Property Involved: 20
- Unit Sold: 73
- Median Sales Price per SF: $630
- Unit Median Sales Price: $470,000
- Price Range: $415,210~$845,148
- Median Sold Unit SF: 724 ft²

* As of October 2018, there were 7 similar properties within 1 mile of distance.
Detailed Information of 7 Peer Properties (Oct. 2017 - Oct. 2018)
LocationBuilt YearSquare FootStoryTotal Unit Average Unit Square FootAverage Sales Price per SFMedian Sales PriceNumber of Unit Sold in 1 Year
84-25 Elmhurst Avenue1954117,5186 144759$503.33$455,0003
40-35 Ithaca Street193751,8906 65851$576.80$495,0006
82-01 Britton Ave193982,8676 82686$554.83$490,4006
42-25 80th Street1960118,3196 147840$527.20$444,6004
81-18 Queens Blvd200429,1416 30830$645.70$525,0006
82-15 Queens Blvd200613,6927 8912$663.12$525,0002
87-22 51st Ave201637,2148 44675$873.28$532,03624

* Data Source:Property Shark,Oct. 2017 to Oct. 2018; data was summarized, calculated, and compared by CrowdFunz Holding LLC.

Geographic Location:

The property is located in the core area of Elmhurst with flourishing retail businesses. It has only 10-minute walking distance to M, R, and 7 route stations. The commute to midtown Manhattan is about 15 minutes, and driving distance is about 15 minutes as well.


BUS: Q53, Q58, Q29
Distance to JFK:10.9 miles (30 minutes Driving Distance)
Distance to LGA:5.6 miles (15 minutes Driving Distance)

Public Facilities
School P.S 14 (Primary School)
Maspeth High School
Newtown High School
Park Louis Simeone Park
Sunnyside Gardens Park
Museum Queens Museum
Museum of Modern Art

Development Firm: 90 Queens Inc.

Introduced Year: 2009

Number of Partner: 3

Total Value of Completed Projects: $ 20 Million

Project Location: Flushing and Surrounding Area; Brooklyn Sunset Park Area; Manhattan Chinatown;

Project Type: Major developing in Condominium;Experience of Mixed-use Properties.

Developed Projects:

The development firm of 47-11 90th St is a famous Chinese developer which has more than XXX years of real estate experience. The developer started its business from real estate brokerage and successfully extended its business into real estate development. In the past XX years, the firm had successfully completed XX property developments and accumulated deep understanding about New York local markets.The development firm also has a good track of record on developing condominium and commercial borrowing. The experience and credit background will help the developer obtain feasible construction loans from commercial banks in the next development stage.

1. Since the second quarter of 2018, the U.S. real estate market has been in adjusting period. The price growth rate fell from the pick at the end of 2017, and the sales prices moderately declined. Looking forward to the trends in the next 2 years, the real estate industry will face higher costs of borrowing due to incremental interest rates, and the overall market might turn back to a more rational position which is based on affordability and supply and demand. In such market trends, CrowdFunz will mainly focus on debt investment opportunities as the core of strategy, adopting conservative loan agreements to build partnerships with real estate developers, and reduce uncertainty from fluctuant market adjustment which may lower the profitability of CrowdFunz’s investors.

2. The mission of CrowdFunz is to offering fixed income products that have controllable value-at-risk, conforming to the demands of investors who would like to minimize their risk profiles. CrowdFunz also insists on selecting real estate projects with low loan-to-value ratio and high collateral as a part of core criteria of debt investment.

3. Compared to other regional real estate markets in the U.S., the market environment of New York city generally has relatively lower volatility and downward interval; the real estate market at New York city has strong local economic support and steady residential and commercial demands. By regional market familiarity and professional understanding of real estate development, CrowdFunz carefully selects those fundraising projects of which the underlying assets or development plans possess great business fundamentals and potentials.

4. As a result of our conservative strategy, CrowdFunz 612 project was successfully passed our risk filtering processes and due diligence. CrowdFunz securitized the borrowing to private equity investment opportunities and introduces it to all CrowdFunz’s clients and potential investors. We believe that the strong market fundamentals in Elmhurst real estate market, the developer’s reliable track of record, and dependable feasibility of the operational planning of the development may support the success of investment for investors who are looing for moderate risk-return trade-off.

Experience   1-2 yrs 3-5 yrs 6-10 yrs 10+ yrs
Tracking Record 0-3M 3-10M 10-50M 50M+  
Credit Score   Accept Fair Good Excellent
Property as Collateral No Yes      
Investor Equity% >60% 50%-60% 40%-50% 25%-40% <25%
Loan Senior Crowdfunz 70%-79% 60%-69% 50%-59% 1%-49% 0%
Location   Rural Suburban Core Urban  
Walk Score 0-49 50-69 70-89 90-100  
Supply & Demand S>>D S>D S≈D S<D S<<D
Property Type          
Development Phase   Ground Up Value-added Stablized  
Occupancy   Low Moderate High Very High
Investment Term   60+ Mths 25-60 Mths 13-24 Mths < 12 Mths
 PPM (Only available to accredited investors)

 Subscription Agreement (Only available to accredited investors)
 Operating Agreement (Only available to accredited investors)

 Appraisal (Only available to accredited investors)