Annual Return: 7.75% - 8%
Min-invest Amount: $10,000
Duration: 6 - 18 Months
|Fund Type||Equity Pledge Debt Fund|
|Offering Amount||$1,000,000 U.S. Dollars|
|Estimated Return||7.75% - 8.00% Annualized Return *1|
|Investment Type||Equity Pledge Loan|
|Unit Price||$10,000 per Subscription Unit|
|Offering Date||February 2022|
|Investment Horizon||6 – 18 Months|
|Dividend Schedule||Prepay Before Per Period (6+6+6 Months)|
* 7.75% Annualized Return For Investment of 1-19 Units;
* 8.00% Annualized Return for investment above 20 Units.
|Site Address||825 & 833 39th St, Brooklyn, NY, 11232|
|Site Area||Sunset Park, Brooklyn, New York|
|Lot Size||Near 15,000 SF|
|Building Size||107,617 SF|
|Market Value Post-Completion||$42,700,000 (Based on BBG appraisal report in 2015)|
|Expected Dividend Calendar|
|Round of Dividend||Funding Amount||Dividend Date *1||Counting Date||Ending Date||Dividend Period||Notes|
|First||$1,000,000||No Later than|
|2/15/2022||8/15/2022||6 Months||Pre-paid Dividend|
|Second||No Later than|
|8/16/2022||2/14/2023 *2||6 Months||Extension Option Owned by Developer|
|Third||No Later than|
|2/15/2023||8/15/2023||6 Months||Extension Option Owned by Developer|
*1 In case of holidays and non-working days, the dividend date will be automatically postponed to the next working day.
*2 After the expiration of the second Dividend Period, the developer has one options to extend the borrowing 6 months. If the developer chooses to extend, the investors will receive dividends at the same rate of return during the extension.
|Mortgage Originated by Commercial Bank||$15,150,000||39.10%|
|Loan Issued by CrowdFunz 820 Fund||1,000,000||2.58%|
|Equity Investment by Developer||22,600,000||58.32%|
After CrowdFunz 820 Mezzanine Loan enters the capital stack
The $1,000,000 provided by CrowdFunz 820 Fund will be used to cover the cost in final construction phase, and other soft costs.
|Use of CrowdFunz 820 Fund|
|Property Taxes and Fees||300,000||30.00%|
|Independent Advisors’ Fees||50,000||5.00%|
* Data provided by Developer
|Zip Code 11232|
|High School Education or above||50%|
|Family Median Income||$84,732|
|Average Family Size||2.79|
|Average Family Size||50%|
Most of the residents are of Asian backgrounds, mainly Chinese and Indian. Most families living in Sunset Park are middle class, with living standard above other areas in Brooklyn and a Family Medium Income of $84,732.
According to data, younger population dominates the area, with an average age of 34.2; 33% of the families have one or more children, and average family size is 2.79 people.
50% of the housing supply are owned by families, with the rest being single family rentals; overall vacancy rate is low.
Residents have strong savings and spending power, which encouraged the growth of local retail businesses.
* Data Source： United States Zip Codes. Org. & Esri Zip Code Lookup，American Community Survey in May 2021.
|Amount||Sale Price / Unit||Unit|
|Community Center||16,300,000||$546.92/SQFT||29,803 SQFT|
|Parking Structure||1,100,000||$11,702/Spot||94 Spots|
|Estimated Total Revenue||$42,700,000|
|Amount||Sale Price / Unit||Unit|
|Community Center||17,800,000||$597.25/SQFT||29,803 SQFT|
|Parking Structure||1,000,000||$10,638/Spot||94 Spots|
|Estimated Total Revenu||$40,800,000|
Project is in the Sunset Park neighborhood of Brooklyn, a prime area with convenient access to bus and subway stations. It takes 25 min to arrive at Financial District on a subway, 30 min to Manhattan on a bus, and 15 min to Brooklyn Bridge on a bus
The basis education system in the area ranks average and does not possess significant competing leverage. According to Great Schools, the PS 169 schools are of average rating.
The area is surrounded by Japanese, Chinese, and Italian restaurants, and adjacent to banks, supermarkets, clinics, gyms, and shopping malls. The site is close to one of the busiest street in Brooklyn, the 8th avenue.
The neighborhood is close to Sunset Park, one of the most known community parks in Brooklyn, and the surrounding recreational businesses can meet all residents' need.
Developer Company: W&L Group
Developer Website: https://www.wandlgroup.com/
Prior Cooperation: None
The founder of W&L Group, Thomas Wang has over 15 years of experience in New York commercial real estate. The developer has completed numerous projects in Brooklyn, Queens, and Manhattan, with focus on hotels and large-scale residential buildings. Under the leadership of Thomas Wang, the development company is gradually becoming a comprehensive development, construction, and property management group.