Annual Return: 8.50% - 8.75%
Min-invest Amount: $10,000
Duration: 6 – 18 Months
|Fund Type||Private Equity Fund|
|Estimated Return||8.5 – 8.75% Annualized Return*1|
|Investment Type||Equity Pledge Loan|
|Unit Price||$10,000 per Subscription Unit|
|Offering Date||June 2023|
|Investment Timeline||6 – 18 Months*2|
|Dividend Schedule||Prepaid per 6 Months*3|
*1 8.5% Annualized Return for Investment of 1-19 Units; % 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 Investors will receive prepaid dividend before every period of 6 months.
|Property Address||112-15 Northern Boulevard, Queens, NY 11368|
|Site Area||Corona, Queens, New York|
|Lot Area||20,909 Sqft|
|Building Area||128,389 Sqft|
|Intended Use||173 Hotel Units, Conference Center, Indoor Parking Structure, and 2 Retail Units.|
|Expected Dividend Calendar|
|Round of Dividend||Dividend Date *1||Counting Date||Ending Date||Dividend Period||Notes|
|First||No Later than|
|6/22/2023||12/21/2023||183 days||Prepaid Dividend *2|
|Second||No Later than|
|12/22/2023||6/21/2024||183 days||Extension Option Owned by Developer *3<|
|Third||No Later than|
|6/22/2024||12/21/2024||183 days||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 Investors will receive at least 183 days of dividends. After 6 months, dividends will be calculated in terms of days till Developer repays the loan.
*3 After the second dividend period, Developer owns two extension options, and investors will receive dividends accordingly at the same dividend rate.
|Mortgage from Commercial Bank||$30,800,000||59.8%|
|CrowdFunz Fund 835 Equity Pledge Loan||$3,500,000||6.8%|
|Developer Equity Value||$20,700,000||40.2%|
|Zip Code 11368|
|College Degree or Above||64%|
|Racial Makeup||Asian(10)%/Caucasian(32)%/African American(6.8%)|
|Average Family Income||$62.254|
|Average Family Size||3.9|
Corona has been one of the fastest growing communities in the past 10 years, for its convenient transportation and proximity to LGA Airport and sport stadiums, in New York.
Residents are from diverse background, and most are Caucasian.
Residents are on-average 31 years old, and most families have stable incomes. Child-bearing family is accounted for around 49%.
Due to proximity to Flushing, floods of Asian residents had migrated to Corona in recent years, in turn driving up property prices and draining inventory.
* Source: United States Zip Codes. Org. & Wikipedia, as of June 2023。
According to CBRE Report in 2022, hotels in New York had a strong recovery after the pandemic. CBRE expects the occupancy rate will recover to 77.2% and 82% in 2023 and 2024. In 2022, the average daily rate increased by 29.7%.
According to Crain’s New York Business Report, during the pandemic, total value of hotel properties in New York decreased from $32.7B to $26.3B. According to an analysis by The Real Deal, small-to-mid sized hotels are operated well as tourism recovers, but large-scale hotels are still facing challenges.
* Source： NYS Comptroller, The Tourism Industry in New York City Reigniting the Return。
* Source: Third party Appraisal Report, compiled and calculated by CrowdFunz.
Hotel is 5 minutes away from 7 Train stations, and 20-min subway away from Midtown Manhattan; driving to LGA Airport takes 5 minutes.
Hotel is in central area of Corona, which has copious options of elementary schools, middle schools, and high schools, to meet education needs.
Corona is adjacent to Chinese communities in Flushing, which offers comprehensive restaurant, supermarkets, and businesses to meet daily needs.
Local family-friendly entertainment venues include art and science museums, and US Open Tennis stadiums.
Developer Company: United Construction & Development Group.
Developer Website: https://unitedgroupny.com/
Prior Cooperation: CrowdFunz Fund 806 / CrowdFunz Fund 808 /CrowdFunz Fund 816
United Construction & Development Group was founded in early 1990. Under the leadership of Mr. Chris Xu, the company has had over 20 years of experience in development and earned reputation among the industry.
Company manages over 2 million squarefeet of retail, residential, industrial, and commercial properties. The Skyline Tower in LIC is one of Developer’s most well-known projects.
Given Developer’s reputable track record, expertise, and creditworthiness, CrowdFunz believes that the new cooperation would create value for all parties.