Annual Return: 8.00 - 8.25%
Min-invest Amount: $10,000
Duration: 6 – 24 Months
|Fund Type||Private Equity Fund|
|Estimated Return||8.00 – 8.25% Annualized Return*1|
|Investment Type||Equity Pledge Loan|
|Unit Price||$10,000 per Subscription Unit|
|Offering Date||February 2023|
|Investment Timeline||6 – 24 Months*2|
|Dividend Schedule||Prepaid per 6 Months*3|
*1 8.00% Annualized Return for Investment of 1-19 Units% 8.25% Annualized Return for Investment above 20 Units.
*2 Investors will receive a minimum of 5 or 6 months of dividend. After 6 months, dividends will be calculated in terms of days, till principal is repaid.
*3 Investors will receive prepaid dividend before every period of 6 months.
|Property Address||23-17 41st Avenue, Long Island City, NY, 11101|
|Site Area||Long Island City, Queens, NY|
|Lot Area||10,000 Square Feet|
|Building Area||40,080 Square Feet|
|Intended Use||42 Condos Units, 2 Commercial Units and 21 Parking Spots|
|Construction Duration||24 Months|
|Expected Dividend Calendar|
|Round of Dividend||Phase||Amount||Dividend Date *1||Counting Date||Ending Date||Dividend Period||Notes|
|First||Phase I||$1,000,000||No Later Than|
|3/7/2023||9/6/2023||6 Months||Prepaid Dividend|
|First||Phase II||$600,000||No Later Than|
|4/7/2023||9/6/2023||5 Months||Prepaid Dividend|
|Second||No Later Than|
|9/7/2023||3/6/2024||6 Months||Extension Option Owned by Developer *2|
|Third||No Later Than|
|3/7/2024||9/6/2024||6 Months||Extension Option Owned by Developer *3|
|Fourth||No Later Than|
|9/7/2024||3/6/2025||6 Months||Extension Option Owned by Developer *3|
*1 In case of holidays and non-working days, the dividend date will be automatically postponed to the next working day.
*2 After the first dividend period for both Phase I and II investment, dividends will be calculated in terms of days till principal is repaid.
*3 After the first dividend period, Developer owns three extension options, and investors will receive dividends accordingly at the same dividend rate.
|Mortgage from Commercial Bank||$23,461,750||62.24%|
|CrowdFunz Fund 831 Equity Pledge Loan||$1,600,000||4.24%|
|Developer Equity Contribution||$12,633,500||33.52%|
|Zip Code 11101|
|High School Education or above||69.8%|
|Family Median Income||$66,579|
|White Collar/Blue Collar||90.5%/9.5%|
|Average Family Size||2.21|
|Average Housing Price||$975,000|
Due to its premium geographic location, Long Island City has become one of the hottest areas absorbing new real estate developments in New York. Meanwhile, more companies and residents have chosen Long Island City as the destination for business and living.
Younger population dominants in the area, and most residents are middle class professionals with jobs and stable incomes. The ethnic backgrounds are also well-diversified.
The average age is 35; 23% of the families have children. Self-residence is the main demand for tenants. Due to the low housing inventory available for sale and high needs from buyers, the property prices are constantly going up.
* Data Source: United States Zip Codes. Org. & Esri Zip Code Lookup, American Community Survey, February 2023
The median home sale price in Long Island City was $460,000 at the end of Q4, 2022, a 15% YoY decline. The median price per square foot of residential properties in the area was $1,003, up 3% YoY. Although the local real estate market had negatively affected by rising U.S. mortgage interest rates in 2022, the market has begun to recover after entering the Q1, 2023.
According to the New York Rental Report from Douglas Elliman, in Q1, 2023, apartment rental in Long Island City, Astoria, Sunnyside, and Woodside have begun to recover significantly, with an average Rents rose to $52.6/SF/Year, and the average condo rental price rose to $3,577 per unit.
* Source: Douglas Elliman.
* Source: Appraisal Report provided by Leitner Berman, data compiled and calculated by CrowdFunz.
* Source: Appraisal Report from BBG, data compiled and calculated by CrowdFunz.
Project is in prime area of Long Island City. The surrounding public transportation is well-developed with 7 subway lines and multiple bus lines. The residents can conveniently reach various destinations in Queens, Brooklyn, and Manhattan. Driving from the project site takes 15 minutes to LaGuardia Airport and 25 minutes to JFK International Airport.
The basic education system in the area covers many elementary schools, junior high schools, and high schools. There are also many technical schools to meet young professionals’ self-development goals.
In addition to well-developed public transportation, the local business environment is vigorous. Companies and government agencies have been moved to the area, and brand-new restaurants and supermarkets have been settled.
The surrounding recreation facilities are improving to fit residents’ need. Museums, gyms, and entertainment venues nearby are within walking distance.
Developer Company: 23-17 41 Ave Development LLC.
Prior Cooperation: CrowdFunz Fund 606 / Fund 806 / Fund 810 / Fund 813 / Fund 817
The development is led by a seasoned Chinese American development group and an emerging New York local developer. The whole team has commercial real estate development experience for over 3 decades.
The development team has completed numerous projects including retail complex, mega residential, and mixed-use buildings in various emerging areas in Queens and New York.
Besides local markets, the team has developed over 5 million square feet of projects in the metro areas of United State and China.
The team is actively engaged in not only development but acquisition, property management and sales in the past 20 years, generating constant profits for their partners and investors.