Annual Return: 8.50 - 8.75%
Min-invest Amount: $10,000
Duration: 12 – 30 Months
|Fund Type||Private Equity Fund|
|Estimated Return||8.50 – 8.75% Annualized Return*1|
|Investment Type||Equity Pledge Loan|
|Unit Price||$10,000 per Subscription Unit|
|Offering Date||April 2023|
|Investment Timeline||12 – 30 Months*2|
|Dividend Schedule||Prepaid per 6 Months*3|
*1 8.50% Annualized Return for Investment of 1-19 Units; 8.75% Annualized Return for Investment above 20 Units.
*2 Investors will receive a minimum of 12 months of dividend. After 12 months, dividends will be calculated in terms of days, till principal is repaid.
*3 dividends will be calculated in terms of days, till principal is repaid.
|Property Address||429 2nd Avenue, New York, NY 10010|
|Site Area||Kips Bay, Manhattan, NY|
|Lot Area||5,982 Sqft|
|Building Area||60,618 Sqft|
|Intended Use||59-Unit Condo (12 Floors)|
|Construction Duration||22 Months|
|Expected Dividend Calendar|
|Round of Dividend||Dividend Date *1||Counting Date||Ending Date||Dividend Period||Notes|
|First||No Later than|
|4/20/2023||10/19/2023||183天||Prepaid Dividend *2|
|Second||No Later than|
|10/20/2023||4/19/2024||183天||Prepaid Dividend *2|
|Third||No Later than|
|4/20/2024||10/19/2024||183天||Extension Option Owned by Developer *3|
|Forth||No Later than|
|10/20/2024||4/19/2025||182天||Extension Option Owned by Developer *3|
|Fifth||No Later than|
|4/20/2025||10/19/2025||183天||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 Investors will receive at least 12 months of dividends. After 12 months, dividends will be calculated in terms of days till Developer repays the loan.
*3 After the second dividend period, Developer owns three extension options, and investors will receive dividends accordingly at the same dividend rate.
|Mortgage from Commercial Bank||$42,000,000||60.31%|
|CrowdFunz Fund 832 Equity Pledge Loan||$4,000,000||5.74%|
|Developer Equity Contribution||$23,637,779||33.94%|
|Zip Code 10010|
|High School Education or above||97%|
|Family Median Income||$97,955|
|White Collar/Blue Collar||97.32%/2.68%|
Residents in the Zip Code has stable jobs and above-average spending power. Thriving environment for tech, finance, medical, and education has attracted more young professionals and facilitated gentrification. White collar is accounted for 97.32% of local workforce.
Residents have an average age of 34; 11.61% of families are child-bearing; 68% of residents rent houses. 25% of buildings were built before 1940, most of the remaining were built before 1980, making way for new developments that could have great growth potential.
* Data Source: United States Zip Codes. Org. & Esri Zip Code Lookup, American Community Survey as of March 2023
As of December 2022, median home sale price was $685,000, 18.2% lower YoY. Median unit sale price went down 25.8% YoY. Rising mortgage rate and home shortage forced many buyers out of the market and drove down home price to an undervalued level.
According to data compiled by PropertyShark, 52 residential units were sold in Kips Bay in the 4th quarter of 2022, down 42.2% YoY. Most sold units were outdated due to lack of new developments.
* Source: PropertyShark.
* Source: Appraisal Report, data compiled and calculated by CrowdFunz.
Kips Bay is in east side of Manhattan and adjacent to East River. It is close to the business district where Madison Square Park and the National Museum of Mathematics are located. Project area has strong commercial environment and transportation network. It takes 15 and 30 minutes driving to LGA and JFK Airports.
Kips Bay has multiple time-honored schools, including Mary Lindley Murray elementary school, The 47 American Sign Language & English Lower School, Simon Baruch Middle School, and municipal-sponsored Baruch College.
Area has high population density, developed businesses, multiple shopping malls, and comprehensive living facilities. There are over 30 unique restaurants mainly located on Third and Second Avenue. Air quality is superior due to high greenery coverage and proximity to East River.
Kips Bay has two municipal libraries and quickly developing recreation sites. Family-friendly Parks, gyms, and museums are within walking distance.
Developer Company: New Empire Corp.
Developer Website: https://www.newempirecorp.com/
Prior Cooperation: CrowdFunz Fund 604 / Fund 805 / Fund 819
Founded in 1997, New Empire Corp. has more than 20 years of development experience in the New York real estate market. Its past projects are in Brooklyn, Manhattan, and Queens.
With the purpose of creating a luxurious and comfortable living environment, its 34th Street project in Long Island City and the Ocean Avenue project in Brooklyn won the best sales awards in New York City and Brooklyn.
Under the leadership of Bentley Zhao, CEO, and Kevin Zhao, Vice President, the company has designed and built more than 100 residential and hotel projects, enabling New Empire Corp. to achieve impressive results.